BEIJING, June 29, 2012 /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 announced that the Company will report its unaudited financial results for the first quarter 2012 before US market opens on Thursday, July 5, 2012.
Following the earnings announcement, Ambow's management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on Thursday, July 5, 2012 (8:00 p.m. Beijing/Hong Kong Time on July 5, 2012) to discuss its first quarter 2012 financial results and highlights of operations and answer questions.
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/
Adjustments to Previous Quarterly 2011 Unaudited Financial Results
In connection with its 2011 Annual Report, the Company announced certain adjustments to its previous quarterly 2011 unaudited financial results presented in the Company's previous press release and filed as an exhibit to the Company's Form 6-K filed with the SEC on May 18, August 25 and November 15 in 2011 and March 5 in 2012 (the "Press Releases").
Please refer to the tables set forth at the end of this release which set out the primary differences between the unaudited annual financial results included in the Press Releases and the quarterly annual financial results reflected in the Company's audited financial statements included in the 2011 Annual Report.
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 tutoring centers and K-12 schools; and "Better Jobs," which includes career enhancement centers and colleges. 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
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Ambow may also make written or oral forward-looking statements in its reports to the SEC, including on Forms 20-F and Form 6-K, 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 Ambow's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks related to Ambow's ability to complete its annual audits in a timely manner, risks related to Ambow's ability to file its annual reports on Form 20-F within the time periods prescribed by the rules of the SEC (or any extension period thereof) and risks related to Ambow's identification of adjustments in its audited financial statements subsequent to announcing preliminary financial results, as well as risks outlined in Ambow's filings with the SEC, including its annual reports on Form 20-F. Ambow does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Ambow's 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 income from continuing operations, (ii) Net income from continuing operations excluding disposal loss from continuing operations, (iii) Non-GAAP net income from continuing operations excluding disposal loss from continuing operations, (iv) Non-GAAP net income from continuing operations, (v) EBITDA from continuing operations excluding disposal loss from continuing operations, (vi) Adjusted EBITDA from continuing operations excluding disposal loss from continuing operations, (vii) Non-GAAP net income from continuing operations per ADS basic and diluted. 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 that 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. Mandy Li
IR Manager
Ambow Education Holding Ltd.
Tel: +86-10-6206-8130
Email: ir@ambow.com
AMBOW EDUCATION HOLDING LTD | |||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(ALL AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) | |||||||||
Mar/31/11 | Jun-30-11 | Sep-30-11 | Dec-31-11 | ||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||||||
RMB | RMB | RMB | RMB | ||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | 790,907 | 524,751 | 576,214 | 470,682 | 3 | ||||
Restricted cash | 50 | 50 | 1,550 | 2,200 | |||||
Term deposits | 29,700 | 28,700 | 20,760 | 46,205 | |||||
Accounts receivable, net | 55,326 | 92,126 | 1 | 205,068 | 1 | 108,247 | 1,4 | ||
Amounts due from related parties | 164,974 | 195,820 | 205,394 | 66,521 | |||||
Deferred tax assets, current | 10,540 | 12,421 | 14,667 | 17,126 | 3 | ||||
Prepaid and other current assets | 444,734 | 524,493 | 573,952 | 574,123 | 3 | ||||
Assets classified as held for sale | - | - | - | 384,401 | 2 | ||||
TOTAL CURRENT ASSETS | 1,496,231 | 1,378,361 | 1,597,605 | 1,669,505 | |||||
Property and equipment, net | 676,259 | 770,372 | 817,563 | 789,016 | 3,6 | ||||
Intangible assets and land use rights, net | 878,808 | 887,466 | 884,039 | 755,784 | 3 | ||||
Goodwill | 1,236,528 | 1,261,686 | 1,319,452 | 1,159,386 | 3 | ||||
Deferred tax assets, non-current | 5,646 | 5,507 | 6,857 | 4,800 | |||||
Amounts due from related parties | 22,593 | 22,541 | 22,502 | 22,463 | |||||
Other non-current assets | 151,425 | 187,185 | 171,314 | 319,673 | 6 | ||||
TOTAL NON-CURRENT ASSETS | 2,971,259 | 3,134,757 | 3,221,727 | 3,051,122 | |||||
TOTAL ASSETS | 4,467,490 | 4,513,118 | 4,819,332 | 4,720,627 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Short-term borrowings | 138,070 | 123,070 | 118,070 | 118,070 | |||||
Current portion of Long-term borrowings | 61,000 | 51,000 | 19,500 | 16,000 | |||||
Deferred revenue | 477,692 | 320,940 | 632,041 | 456,189 | 3 | ||||
Accounts payable | 33,100 | 59,188 | 49,201 | 51,896 | 3 | ||||
Accrued expenses and other current liabilities | 407,190 | 433,554 | 423,273 | 482,476 | 3,6 | ||||
Income tax payable | 95,882 | 111,766 | 123,211 | 132,406 | 3,5 | ||||
Amount due to related parties | 15,720 | 37,225 | 40,788 | 47,531 | |||||
Liabilities classified as held for sale | - | - | - | 145,169 | 2 | ||||
TOTAL CURRENT LIABILITIES | 1,228,654 | 1,136,743 | 1,406,084 | 1,449,737 | |||||
Deferred tax liabilities, non-current | 172,280 | 175,951 | 178,138 | 154,368 | 3 | ||||
Long-term borrowings | 54,000 | 64,000 | 52,500 | 46,500 | |||||
Non-current portion of consideration payable for acquisitions and other liabilities | 270,888 | 288,412 | 302,958 | 303,559 | 3 | ||||
TOTAL NON-CURRENT LIABILITIES | 497,168 | 528,363 | 533,596 | 504,427 | |||||
TOTAL LIABILITIES | 1,725,822 | 1,665,106 | 1,939,680 | 1,954,164 | |||||
SHAREHOLDERS' EQUITY | 2,686,913 | 2,789,992 | 2,817,536 | 2,711,582 | |||||
TOTAL AMBOW EDUCATION HOLDING LTD'S EQUITY | 2,686,913 | 2,789,992 | 2,817,536 | 2,711,582 | |||||
Non-controlling interest | 54,755 | 58,020 | 62,115 | 54,881 | |||||
TOTAL SHAREHOLDERS' EQUITY | 2,741,668 | 2,848,012 | 2,879,651 | 2,766,463 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,467,490 | 4,513,118 | 4,819,331 | 4,720,627 | |||||
Note 1. Adjustment related distributor sales adjustment | |||||||||
Note 2. Assets held for sale and liabilities held for sale adjustments related to Beijing Century College reclassified as held for sale | |||||||||
Note 3. Adjustment due to Beijing 21st Century International School reclassified as held for use, whose Balance Sheet was included at the year end | |||||||||
Note 4. Adjustment related to bad debt provision | |||||||||
Note 5. Income tax payable adjustment due to decreased taxable income and Beijing 21st Century International School reclassified as held for use | |||||||||
Note 6. Leasehold improvement adjustment relating to new training centers; depreciation and accrued expenses and other current liabilities were adjusted accordingly | |||||||||
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 | |||||||||||
Mar/31/11 | Jun-30-11 | Sep-30-11 | Dec-31-11 | Dec-31-11 | |||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited FY) | |||||||
RMB | RMB | RMB | RMB | RMB | |||||||
Better Schools | |||||||||||
Tutoring | 159,232 | 210,903 | 210,096 | 197,738 | 1 | 777,969 | 1 | ||||
K-12 Schools | 54,129 | 78,477 | 50,233 | 87,220 | 270,059 | ||||||
Better Job | |||||||||||
Career Enhancement | 75,690 | 131,379 | 1 | 140,023 | 1 | 158,110 | 1 | 505,202 | 1 | ||
Colleges | 17,952 | 30,356 | 31,156 | 36,518 | 115,982 | ||||||
NET REVENUES | 307,003 | 451,115 | 431,508 | 479,586 | 1,669,212 | ||||||
Cost of revenues | 146,155 | 3 | 178,480 | 1,3 | 181,061 | 1,3 | 209,636 | 1,2,3,4 | 715,332 | 1,2,3,4 | |
GROSS PROFIT | 160,848 | 272,635 | 250,447 | 269,950 | 953,880 | ||||||
Operating expenses: | |||||||||||
Selling and marketing | 58,780 | 82,540 | 99,359 | 112,746 | 353,425 | ||||||
General and administrative | 72,636 | 3 | 67,002 | 3 | 75,409 | 3 | 114,866 | 3,5 | 329,913 | 3,5 | |
Research and development | 7,789 | 8,047 | 14,016 | 9,689 | 4 | 39,541 | 4 | ||||
Impairment loss | - | - | - | 25,336 | 25,336 | ||||||
TOTAL OPERATING EXPENSES | 139,205 | 157,589 | 188,784 | 262,637 | 748,215 | ||||||
OPERATING INCOME | 21,643 | 115,046 | 61,663 | 7,313 | 205,665 | ||||||
OTHER INCOME (EXPENSE) | |||||||||||
Interest expense, net | (5,733) | (6,221) | (6,844) | (5,805) | (24,603) | ||||||
Foreign exchange losses, net | (1,742) | (1,720) | (1,787) | (94) | (5,343) | ||||||
Other income, net | (1,119) | 501 | 563 | 2,367 | 2,312 | ||||||
INCOME BEFORE TAX AND NON-CONTROLLING INTEREST | 13,049 | 107,606 | 53,595 | 3,781 | 178,031 | ||||||
Income tax expense | 2,059 | 16,691 | 6 | 9,641 | 6 | 13,840 | 6 | 42,231 | 6 | ||
INCOME/(LOSS) FROM CONTINUING OPERATIONS | 10,990 | 90,915 | 43,954 | (10,059) | 135,800 | ||||||
Income/(loss) from discontinued operations, net of income taxes | (2,727) | 7 | 16,142 | 7 | (9,923) | 7 | (123,073) | (119,581) | |||
NET INCOME/(LOSS) | 8,263 | 107,057 | 34,031 | (133,132) | 16,219 | ||||||
Add: Net gain/(loss) attributable to non-controlling interests | (1,492) | 1,465 | 2,295 | (7,234) | (4,966) | ||||||
NET INCOME / (LOSS) ATTRIBUTABLE TO AMBOW EDUCATION HOLDING LTD | 9,755 | 105,592 | 31,736 | (125,898) | 21,185 | ||||||
Preferred shares redemption value accretion | |||||||||||
Allocation of net income to participating preferred shareholders | |||||||||||
NET INCOME/(LOSS) ATTRIBUTABLE TO ORDINARY SHAREHOLDERS | 9,755 | 105,592 | 31,736 | (125,898) | 21,185 | ||||||
Net income/(loss) from continuing operations per ADS attributable to ordinary shareholders | |||||||||||
Basic | 0.18 | 1.25 | 0.58 | (0.05) | 1.96 | ||||||
Diluted | 0.17 | 1.20 | 0.56 | (0.05) | 1.88 | ||||||
Net income/(loss) from discontinued operations per ADS attributable to ordinary shareholders | |||||||||||
Basic | (0.04) | 0.23 | (0.14) | (1.72) | (1.67) | ||||||
Diluted | (0.04) | 0.22 | (0.13) | (1.64) | (1.59) | ||||||
Weighted average number of ADS (note 8) | |||||||||||
Basic | 71,283,488 | 71,328,089 | 71,560,179 | 71,700,732 | 71,469,519 | ||||||
Diluted | 75,425,764 | 75,141,920 | 75,068,903 | 75,080,574 | 75,216,406 | ||||||
Supplementary Information: | |||||||||||
Share-based compensation expense included in: | |||||||||||
Selling and marketing | 1,788 | 1,826 | 1,827 | 1,845 | 7,286 | ||||||
General and administrative | 4,667 | 5,799 | 7,640 | 7,114 | 25,220 | ||||||
Research and development | 221 | 204 | 207 | 210 | 842 | ||||||
6,676 | 7,829 | 9,674 | 9,169 | 33,348 | |||||||
Note 1. Revenue and cost of revenues adjustments related to distributor sales. | |||||||||||
Note 2. Leasehold improvement depreciation and other expense related to new training centers | |||||||||||
Note 3. Reclassified student population amortization from G&A to cost of revenues | |||||||||||
Note 4. Reclassified cost of revenues to R&D expense | |||||||||||
Note 5. Adjustment related to bad debt provision | |||||||||||
Note 6. Income tax impact due to lower taxable income | |||||||||||
Note 7. Income/(loss) from discontinued operations in Q1, Q2, and Q3 by using the same methodology as that used for full year. | |||||||||||
Note 8. Each ADS represents two common shares. | |||||||||||
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 | |||||||||
Mar/31/11 | Jun-30-11 | Sep-30-11 | Dec-31-11 | Dec-31-11 | |||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited FY) | |||||
RMB | RMB | RMB | RMB | RMB | |||||
Operating income from continuing operations | 21,643 | 115,046 | 61,663 | 7,313 | 205,665 | ||||
Share-based compensation expenses | 6,676 | 7,829 | 9,674 | 9,169 | 33,348 | ||||
Impairment loss | - | - | - | 25,336 | 25,336 | ||||
Non-GAAP operating income from continuing operations | 28,319 | 122,875 | 71,337 | 41,818 | 264,349 | ||||
Net income from continuing operations | 12,482 | 89,450 | 41,659 | (2,825) | 140,766 | ||||
Impairment loss | - | - | - | 25,336 | 25,336 | ||||
Net income from continuing operations excluding impairment loss from continuing operations attributable to Ambow | 12,482 | 89,450 | 41,659 | 22,511 | 166,102 | ||||
Share-based compensation expenses | 6,676 | 7,829 | 9,674 | 9,169 | 33,348 | ||||
Non-GAAP net income from continuing operations | 19,158 | 97,279 | 51,333 | 31,680 | 199,450 | ||||
Net income from continuing operations margin | 4% | 20% | 10% | -1% | 8.4% | ||||
Non-GAAP net income from continuing operations margin | 6% | 22% | 12% | 7% | 4 | 11.9% | |||
Net income from continuing operations per ADS attributable to Ordinary Shareholders - Basic (note 4) | 0.18 | 1.25 | 0.57 | (0.04) | 1.96 | ||||
Net income from continuing operations per ADS attributable to Ordinary Shareholders - Diluted | 0.17 | 1.19 | 0.56 | (0.04) | 1.88 | ||||
Net income from continuing operations per adjusted ADS attributable to Ambow - Basic | 0.18 | 1.25 | 0.57 | (0.04) | 1.96 | ||||
Net income from continuing operations per adjusted ADS attributable to Ambow - Diluted (note3) | 0.17 | 1.19 | 0.56 | (0.04) | 1.88 | ||||
Non-GAAP net income from continuing operations per adjusted ADS attributable to Ambow - Basic | 0.27 | 1.36 | 0.72 | 0.44 | 2.79 | ||||
Non-GAAP net income from continuing operations per adjusted ADS attributable to Ambow - Diluted | 0.25 | 1.29 | 0.68 | 0.42 | 2.65 | ||||
Adjusted weighted average number of ADS used in calculating net income and non GAAP from continuing operations net income attributable to Ambow per ADS - basic | 71,283,488 | 71,328,089 | 71,560,179 | 71,700,732 | 71,469,519 | ||||
Adjusted weighted average number of ADS used in calculating net income and non GAAP net income from continuing operations attributable to Ambow per ADS - diluted | 75,425,764 | 75,141,920 | 75,068,903 | 75,080,574 | 75,216,406 | ||||
EBITDA from continuing operations excluding impairment loss from continuing operations (note1) | 47,612 | 139,481 | 84,618 | 76,131 | 347,842 | ||||
Share-based compensation expenses | 6,676 | 7,829 | 9,674 | 9,169 | 33,348 | ||||
Adjusted EBITDA from continuing operation excluding impairment loss from continuing operations (note2) | 54,288 | 147,310 | 94,292 | 85,300 | 381,190 | ||||
EBITDA margin from continuing operations excluding impairment loss from continuing operations | 15.5% | 30.9% | 19.6% | 15.9% | 20.8% | ||||
Adjusted EBITDA margin from continuing operations excluding impairment loss from continuing operations | 17.7% | 32.7% | 21.9% | 17.8% | 22.8% | ||||
Note1: EBITDA from continuing operations, a non-GAAP measure, being net income from continuing operations attributable to Ambow excluding interest expense, income tax expenses, depreciation and amortization. The depreciation and amortization from continuing operations for the twelve months of 2011(6-k) and 2011 (adjusted) were RMB 106,940 and RMB 114,906, respectively. | |||||||||
Note2: Adjusted EBITDA from continuing operations being EBITDA from continuing operations excluding share based compensation. | |||||||||
Note3: Net income from continuing operations per adjusted ADS attributable to Ambow - diluted is computed by dividing net income from continuing operations 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. | |||||||||
Note4: Net income from continuing operations used to calculate EPADS is equal to net income (loss) attributable to AMBOW EDUCATION HOLDING LTD minus income (loss) from discontinued operations, net of income taxes. | |||||||||
