BEIJING, June 14, 2012 /PRNewswire-Asia/ -- ChinaEdu Corporation (NASDAQ: CEDU) ("ChinaEdu" or the "Company"), a leading online educational services provider in China, today announced its unaudited financial results for the first quarter ended March 31, 2012.[1]
First Quarter 2012 Highlights
Julia Huang, executive chairman commented, "We are pleased with our results in the first quarter of 2012 and are optimistic about the full year. As seen historically, over eighty percent of our net revenue results from student enrollments in our core online degree programs. We continue to focus our attention on our core business and are confident that with continued effort and innovation we will see further organic growth in student enrollments in these programs. We will continue to stay close to our online teaching expertise as we move through 2012 and beyond."
Mr. Simon Mei, chief financial officer commented, "With a strong top line, enhanced by significant increases in student enrollment in online degree programs, careful cost management allowed for an equally well enhanced bottom line in the first quarter of 2012. We have been cautious with headcount increases and marketing spending, even reducing headcount in certain non-essential areas where redundancies were found. Moving forward, we will continue to implement these cost control measures and manage our financial situation, allowing us to successfully navigate a developing industry."
Financial Results for the First Quarter Ended March 31, 2012
Net Revenue
Total net revenue for the first quarter of 2012 was $18.1 million, a 24.7 percent increase from $14.5 million in the corresponding period in 2011.
Net revenue from online degree programs for the first quarter of 2012 was $14.6 million, a 28.3 percent increase over $11.4 million in the corresponding period in 2011. The increase was primarily due to organic growth in revenue students enrolled in our core online degree programs. There was also strong growth in revenue contributed from our learning centers network and increased revenue contribution from our online non-degree training programs. Enrollment for 2011 Fall semester online degree programs was approximately 197,000 revenue students, a 27.9 percent increase from approximately 154,000 revenue students enrolled in the Fall 2010 semester.
As of March 31 2012, ChinaEdu's learning centers network was providing recruiting services for 22 universities with 105 operational learning centers, of which 55 were proprietary centers[6] and 50 were contracted centers[7]. This compares to 96 operational learning centers as of March 31, 2011, of which 53 were proprietary and 43 were contracted centers.
Net revenue from non-degree programs, including online tutoring programs, private primary and secondary schools and international and elite curriculum programs, in the first quarter of 2012 was $3.5 million, an 11.8 percent increase from $3.1 million in the first quarter of 2011. The growth was mainly driven by an increase in student enrollments at our private schools in Anqing and Pingdingshan as well as strong performance by our 101 online school tutoring programs.
Cost of Revenue
Total cost of revenue for the first quarter of 2012 was $7.2 million, representing an increase of 14.5 percent, compared to $6.3 million in the corresponding period of 2011.
Cost of revenue for online degree programs in the first quarter of 2012 was $4.8 million, an increase of 13.5 percent from $4.2 million in the corresponding period of 2011. The cost increase was primarily due to the increase in staff costs that resulted from headcount increase across the Company, especially in our online degree programs that have seen significant growth beginning in the second half of 2011 and continuing in the first quarter of 2012.
Cost of revenue for non-degree programs in the first quarter of 2011 was $2.4 million, an increase of 16.5 percent from $2.1 million in the first quarter of 2011. The cost of revenue increase was primarily related to employee costs, leasing costs and service fees associated with our 101 online tutoring programs and teaching costs, dormitory, canteen and transportation costs related to our private primary schools in Anqing and Pingdingshan.
Gross Profit and Gross Margin
Gross profit for the first quarter of 2012 was $10.9 million, compared to $8.2 million in the corresponding period of 2011. Gross margin increased to 60.1 percent, compared to 56.5 percent in the corresponding period in 2011.
Gross margin for online degree programs increased to 67.0 percent for the first quarter of 2012, compared to 62.7 percent in the corresponding period of 2011. The increases in gross margin and gross profit were primarily related to organic growth in the number of revenue students enrolled in online degree programs.
Gross margin for private schools increased to 27.6 percent in the first quarter of 2012, compared to 25.6 percent in the corresponding period in 2011. The increase was primarily due to continued strong enrollment at the Anqing School, which is enjoying economics of scale, as well as increased enrollment at our Pingdingshan School.
Gross margin for online tutoring programs decreased to 54.7 percent in the first quarter of 2012, from 64.4 percent in first quarter of 2011, largely due to increased staff and leasing costs associated with these programs.
Operating Expenses
Total operating expenses were $7.3 million in the first quarter of 2012, representing a 13.1 percent increase from $6.5 million for the corresponding period in 2011. As a percentage of net revenue, total operating expenses decreased to 40.4 percent, compared to 44.6 percent in the corresponding period in 2011. The increase in total operating expense was the result of the following:
Income from Operations
Income from operations in the first quarter of 2012 was $3.6 million, an increase of 105.7 percent compared to $1.7 million in the corresponding period of 2011. This was mainly due to the significant increase in student enrollment in online degree programs coupled with well-enforced cost controlling measures and cautious spending practices. Operating margin increased to 19.6 percent for the first quarter of 2012, compared to 11.9 percent in the corresponding period of 2011.
Adjusted income from operations, a non-GAAP measure defined as income from operations excluding share-based compensation, amortization of intangible assets and land use rights, was $4.1 million for the first quarter of 2012, an increase of 89.1 percent compared to $2.2 million in the corresponding period of 2011.
Adjusted operating margin, a non-GAAP measure defined as the ratio of adjusted income from operations (non-GAAP) over net revenue, for the first quarter of 2012 increased to 22.6 percent, compared to 14.9 percent for the corresponding period of 2011.
Interest and Investment Income
Interest and investment income for the first quarter of 2012 increased 91.7 percent to $0.6 million, compared to $0.3 million for the corresponding quarter of 2011.
Income Tax Expense
In the first quarter of 2012, income tax expense was $0.9 million and the effective income tax rate was 20.9 percent, compared with an income tax expense of $0.4 million and effective income tax rate of 19.2 percent in same period of 2011. The Company had a higher tax rate in the first quarter of 2012 due to the allowance provided for deferred income tax assets, considering cumulative historical losses at certain subsidiaries.
Net Income Attributable to Non-controlling Interests
Net income attributable to non-controlling interests increased to $1.7 million in the first quarter of 2012, compared to $1.1 million in the corresponding period in 2011.
Net Income Attributable to ChinaEdu
Net income attributable to ChinaEdu, which is net income, excluding net income attributable to non-controlling interests, was $1.6 million in the first quarter of 2012, representing an increase of 195.5 percent from $0.5 million in the corresponding period of 2011.
Net income attributable to ChinaEdu per basic and diluted ADS was $0.104 and $0.098, respectively, for the first quarter of 2012, as compared to $0.035 and $0.032, respectively, for the corresponding period in 2011.
Adjusted net income attributable to ChinaEdu (non-GAAP) was $2.1 million in the first quarter of 2012 compared to $1.0 million in the corresponding period of 2011. Adjusted net margin, a non-GAAP measure defined as the ratio of adjusted net income attributable to ChinaEdu (non-GAAP) over net revenue, was 11.9 percent in the first quarter of 2012, compared to 6.7 percent in the corresponding period of 2011.
Adjusted net income attributable to ChinaEdu per basic and diluted ADS (non-GAAP) was $0.136 and $0.128, respectively, for the first quarter of 2012, compared to $0.060 and $0.056, respectively, in the corresponding period of 2011.
Deferred Revenue
As of March 31, 2012, deferred revenue was $9.3 million, consisting of current deferred revenue in the amount of $7.5 million and non-current deferred revenue in the amount of $1.8 million. In general, the Fall semester tuition is finally received during the first quarter of the following year but is recognized both in the fourth quarter of the current year and in the first quarter of the following year. Private school revenue is received in September, but is amortized over 6 or 12 months while online tutoring program revenue can be received at program enrollment and is mostly amortized within 12 months.
Cash and Cash Equivalents and Term Deposits
As of March 31, 2012, the Company reported cash and cash equivalents and term deposits of $55.5 million, which primarily consisted of cash, demand deposits with original maturity terms of three months or less, and term deposits with original maturity terms of greater than three months but less than one year.
Amounts Due from Related Parties
Amounts due from related parties, which represents cash owed to the Company by collaborative alliance partners, were $37.5 million as of March 31, 2012 compared to $37.8 million as of December 31, 2011.
Second Quarter 2012 Guidance
ChinaEdu management expects total net revenue in the second quarter of 2012 to range from RMB111 million to RMB113 million or $17.6 million to $17.8 million, representing a one percent to two percent increase compared to the corresponding period in 2011. This forecast reflects ChinaEdu's current and preliminary view, which is subject to change.
Conference Call
ChinaEdu's management will hold an earnings conference call at 8:00 a.m. U.S. Eastern Time on June 14, 2012 (8:00 p.m. Beijing/Hong Kong Time on June 14, 2012).
Dial-in details for the earnings conference call are as follows:
International: | +6567239381 |
Hong Kong: | +85224750994 |
United States: | +1 (718) 354-1231 |
Toll-free China, Mobile: | 4006208038 |
Toll-free China: | 8008190121 |
Toll-free United States: | 1 (866) 519-4004 |
Passcode: | 82646278 |
A live and archived webcast of the conference call will be available on the investor relations page of ChinaEdu's website at http://ir.chinaedu.net and a replay of the conference call may be accessed by phone until June 21, 2012.
Dial-in numbers for the replay are as follows:
Toll Free United States: | +1 866 214 5335 |
International: | +1 718 354 1232 |
Conference ID: | 82646278 |
Non-GAAP Financial Measures
To supplement the unaudited condensed consolidated financial information presented in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), the Company uses non-GAAP measures of income from operations and net income attributable to ChinaEdu, which are adjusted from results based on GAAP to exclude certain non-cash items of share-based compensation and amortization of intangible assets and land use rights. Adjusted operating margin defined as the ratio of adjusted operating income from operation over net revenue. Adjusted net income attributable to ChinaEdu per basic and diluted ADS are a non-GAAP measure which are computed using adjusted net income attributable to ChinaEdu over the number of ADSs used in net income attributable to ChinaEdu per basic and diluted ADS calculation.
These non-GAAP financial measures are provided to enhance the investors' overall understanding of the Company's current and past financial performance in on-going core operations as well as prospects for the future. These measures should be considered in addition to results prepared and presented in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Management considers the non-GAAP information as important measures internally and therefore deems it important to provide all of this information to investors.
About ChinaEdu
ChinaEdu Corporation is an educational services provider in China, incorporated as an exempted limited liability company in the Cayman Islands. Established in 1999, the Company's primary business is to provide comprehensive services to the online degree programs of leading Chinese universities. These services include academic program development, technology services, enrollment marketing, student support services and finance operations. The Company's other lines of businesses include the operation of private primary and secondary schools, online interactive tutoring services and providing marketing, support for international and elite curriculum programs and online learning community for adult students.
The Company believes it is the largest service provider to online degree programs in China in terms of the number of higher education institutions that are served and the number of student enrollments supported. The Company currently has 18 long-term contracts that generally vary from 10 to 50 years in length. ChinaEdu also performs recruiting services for 22 universities through nationwide learning center network.
Forward-Looking Statement
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and contingencies, many of which are beyond our control which may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company's actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 2011, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to (and expressly disclaim any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For investor and media inquiries, please contact:
Helen Plummer
Senior Investor Relations Coordinator
ChinaEdu Corporation
Phone: +86 13911672124
E-mail: helen@chinaedu.net
Jin Yu
Investor Relations Manager
ChinaEdu Corporation
Phone: +86 15711096022
E-mail: jinyu@chinaedu.net
ChinaEdu Corporation | ||||
Unaudited Condensed Consolidated Balance Sheets | ||||
(in thousands, unaudited) | December | March | March | |
RMB | RMB | US$ | ||
Current assets: | ||||
Cash and cash equivalents | 273,746 | 275,691 | 43,778 | |
Term deposits | 98,163 | 74,028 | 11,755 | |
Short-term investments | 34,648 | 24,649 | 3,914 | |
Accounts receivable, net | 31,478 | 22,299 | 3,541 | |
Prepaid expenses and other current assets | 22,725 | 24,939 | 3,961 | |
Amounts due from related parties | 238,016 | 236,178 | 37,503 | |
Deferred tax assets-current | 5,697 | 1,520 | 241 | |
Total current assets | 704,473 | 659,304 | 104,693 | |
Deferred tax assets-non-current | 8,217 | 9,838 | 1,562 | |
Rental deposits | 2,213 | 1,742 | 277 | |
Land use rights | 26,657 | 26,505 | 4,209 | |
Property and equipment, net | 239,210 | 232,882 | 36,980 | |
Deposits paid for acquisition of property and equipment | 17,902 | 17,902 | 2,843 | |
Acquired intangible assets, net | 63,638 | 62,653 | 9,949 | |
Goodwill | 43,255 | 43,255 | 6,869 | |
Total assets | 1,105,565 | 1,054,081 | 167,382 | |
Liabilities and equity | ||||
Current liabilities: | ||||
Accounts payable (including accounts payable of the consolidated VIE | 2,239 | 4,738 | 752 | |
Deferred revenues-current (including deferred revenues of the | 125,332 | 46,941 | 7,454 | |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIE without | 91,980 | 97,956 | 15,555 | |
Amounts due to related parties (including amounts due to related parties | 13,146 | 23,098 | 3,668 | |
Income taxes payable (including income taxes payable of the | 51,448 | 40,846 | 6,486 | |
Other taxes payable (including other taxes payable of the consolidated | 21,970 | 17,010 | 2,701 | |
Total current liabilities | 306,115 | 230,589 | 36,616 | |
Deferred revenues-non-current (including deferred revenues of the | 12,059 | 11,459 | 1,820 | |
Deferred tax liabilities-non-current (including deferred tax liabilities of the | 9,243 | 9,043 | 1,436 | |
Unrecognized tax benefit (including unrecognized tax benefit of the | 6,089 | 6,729 | 1,069 | |
Total liabilities | 333,506 | 257,820 | 40,941 | |
ChinaEdu shareholders' equity | 604,806 | 617,112 | 97,993 | |
Noncontrolling interests | 167,253 | 179,149 | 28,448 | |
Total equity | 772,059 | 796,261 | 126,441 | |
Total liabilities and equity | 1,105,565 | 1,054,081 | 167,382 | |
ChinaEdu Corporation | ||||||
Unaudited Condensed Consolidated Statements of Operations | ||||||
Three Months Ended | ||||||
(in thousands, except for percentage, share, and per share information) | March | March 31,2012 | March | |||
RMB | RMB | US$ | ||||
Gross Revenue * | 95,862 | 119,632 | 18,997 | |||
Business Tax | 4,512 | 5,705 | 906 | |||
Net Revenue: | ||||||
Online degree programs | 71,665 | 91,927 | 14,597 | |||
Online tutoring programs | 5,656 | 6,009 | 954 | |||
Private primary and secondary schools | 11,240 | 13,536 | 2,150 | |||
International and elite curriculum programs | 2,789 | 2,455 | 390 | |||
Total net revenue | 91,350 | 113,927 | 18,091 | |||
Cost of revenue: | ||||||
Online degree programs | 26,712 | 30,319 | 4,814 | |||
Online tutoring programs | 2,013 | 2,721 | 432 | |||
Private primary and secondary schools | 8,361 | 9,806 | 1,557 | |||
International and elite curriculum programs | 2,665 | 2,663 | 423 | |||
Total cost of revenue | 39,751 | 45,509 | 7,226 | |||
Gross profit: | ||||||
Online degree programs | 44,953 | 61,608 | 9,783 | |||
Online tutoring programs | 3,643 | 3,288 | 522 | |||
Private primary and secondary schools | 2,879 | 3,730 | 593 | |||
International and elite curriculum programs | 124 | (208) | (33) | |||
Total gross profit | 51,599 | 68,418 | 10,865 | |||
Online degree programs | 62.7% | 67.0% | 67.0% | |||
Online tutoring programs | 64.4% | 54.7% | 54.7% | |||
Private primary and secondary schools | 25.6% | 27.6% | 27.6% | |||
International and elite curriculum programs | 4.4% | (8.5%) | (8.5%) | |||
Gross margin | 56.5% | 60.1% | 60.1% | |||
Operating expenses: | ||||||
General and administrative | 21,897 | 25,810 | 4,098 | |||
Selling and marketing | 9,068 | 10,463 | 1,661 | |||
Research and development | 9,758 | 9,777 | 1,553 | |||
Total operating expenses | 40,723 | 46,050 | 7,312 | |||
Income from operations | 10,876 | 22,368 | 3,553 | |||
Operating margin | 11.9% | 19.6% | 19.6% | |||
Other income | 123 | 247 | 39 | |||
Interest income | 1,910 | 2,988 | 474 | |||
Investment income | - | 674 | 107 | |||
Income before income tax | 12,909 | 26,277 | 4,173 | |||
Income tax expense | (2,475) | (5,483) | (871) | |||
Net income | 10,434 | 20,794 | 3,302 | |||
Net income attributable to the noncontrolling interests | (6,940) | (10,469) | (1,662) | |||
Net income attributable to ChinaEdu | 3,494 | 10,325 | 1,640 | |||
Net margin | 3.8% | 9.1% | 9.1% | |||
Net income attributable to ChinaEdu per ADS: | ||||||
Basic | 0.22 | 0.66 | 0.104 | |||
Diluted | 0.20 | 0.62 | 0.098 | |||
Weighted average aggregate number of ADSs outstanding: | ||||||
Basic | 15,910,224 | 15,746,005 | 15,746,005 | |||
Diluted | 17,229,640 | 16,761,137 | 16,761,137 | |||
* Gross revenue are detailed as follows | ||||||
Online degree programs | 75,809 | 97,318 | 15,453 | |||
Online tutoring programs | 5,850 | 6,157 | 978 | |||
Private primary and secondary schools | 11,252 | 13,558 | 2,153 | |||
International and elite curriculum programs | 2,951 | 2,599 | 413 | |||
ChinaEdu Corporation | ||||||
Unaudited Condensed Consolidated Statements of Comprehensive Income | ||||||
Three Months Ended | ||||||
(in thousands, unaudited) | March | March | March | |||
RMB | RMB | US$ | ||||
Net income | 10,434 | 20,794 | 3,302 | |||
Other comprehensive income, net of tax | ||||||
Foreign currency translation adjustments | 332 | 7 | 1 | |||
Change in fair value of available for sale investments | (163) | 237 | 38 | |||
Comprehensive income | 10,603 | 21,038 | 3,341 | |||
Less: comprehensive income attributable to the noncontrollng interest | 7,988 | 10,446 | 1,659 | |||
Comprehensive income attributable to ChinaEdu | 2,615 | 10,592 | 1,682 | |||
ChinaEdu Corporation | ||||||
Unaudited Condensed Consolidated Statements of Cash Flow | ||||||
Three Months Ended | ||||||
(in thousands, unaudited) | March | March 31,2012 | March | |||
RMB | RMB | US$ | ||||
Operating activities: | ||||||
Net income | 10,434 | 20,794 | 3,302 | |||
Adjustments to reconcile net income to net cash provided by operating | ||||||
Share-based compensation | 1,555 | 2,219 | 352 | |||
Depreciation and amortization of property and equipment | 5,787 | 6,304 | 1,001 | |||
Amortization of land use rights | 152 | 152 | 24 | |||
Amortization of acquired intangible assets | 1,017 | 985 | 156 | |||
Loss (gain) on sale of investment | 16 | (69) | (11) | |||
Provision for Accounts Receivable | - | 340 | 54 | |||
Loss from disposal of property and equipment | 65 | 812 | 129 | |||
Changes in assets and liabilities | ||||||
Accounts receivable | 19,796 | 8,839 | 1,404 | |||
Inventory | (2) | - | - | |||
Prepaid expenses and other current assets | (489) | (2,213) | (350) | |||
Amounts due from related parties | 72,795 | 1,838 | 292 | |||
Rental deposits | (1,317) | 471 | 75 | |||
Accounts payable | 1,321 | 2,514 | 399 | |||
Deferred revenues | (61,272) | (78,991) | (12,543) | |||
Accrued expenses and other current liabilities | (6,952) | 5,974 | 950 | |||
Amounts due to related parties | (12,945) | 9,952 | 1,580 | |||
Income tax payable | (11,259) | (10,602) | (1,684) | |||
Other taxes payable | (6,974) | (4,960) | (788) | |||
Deferred income taxes | 1,047 | 2,356 | 374 | |||
Unrecognized tax benefit | 596 | 640 | 102 | |||
Net cash provided by (used in) operating activities | 13,371 | (32,645) | (5,182) | |||
Investing activities: | ||||||
Purchase of property and equipment | (7,921) | (803) | (128) | |||
Proceeds from discontinued operations | 233 | - | - | |||
Purchase of/ mature of term deposits | (43,000) | 24,135 | 3,832 | |||
Purchase of investments | (6,000) | - | - | |||
Proceeds from the sale of investment | - | 10,318 | 1,638 | |||
Net cash (used in) provided by investing activities | (56,688) | 33,650 | 5,342 | |||
Financing activities: | ||||||
Cash dividends paid to noncontrolling shareholders | (10,521) | - | - | |||
Capital contributions by noncontrolling shareholders | 1,000 | - | - | |||
Proceeds from exercise of share options | 280 | 945 | 150 | |||
Loan from related party | 35,500 | - | - | |||
Net cash provided by financing activities | 26,259 | 945 | 150 | |||
Effect of foreign exchange rate changes | 151 | (5) | (1) | |||
CASH AND CASH EQUIVALENTS, beginning of period | 190,493 | 273,746 | 43,469 | |||
CASH AND CASH EQUIVALENTS, end of period | 173,586 | 275,691 | 43,778 | |||
Net (decrease) increase in cash and cash equivalents | (16,907) | 1,945 | 309 | |||
ChinaEdu Corporation | ||||||
Unaudited reconciliations from income from operations to adjusted income from operations (non-GAAP) and adjusted operating margin (non-GAAP) | ||||||
Three Months Ended | ||||||
(in thousands, unaudited) | March | March 31,2012 | March | |||
RMB | RMB | US$ | ||||
Net revenue | 91,350 | 113,927 | 18,091 | |||
Income from operations | 10,876 | 22,368 | 3,553 | |||
Adjustment: | ||||||
Share-based compensation | 1,555 | 2,219 | 352 | |||
Amortization of intangible assets and land use rights | 1,169 | 1,137 | 180 | |||
Adjusted income from operations (non-GAAP) | 13,600 | 25,724 | 4,085 | |||
Adjusted operating margin (non-GAAP) | 14.9% | 22.6% | 22.6% | |||
ChinaEdu Corporation | ||||||
Unaudited reconciliations from net income attributable to ChinaEdu to adjusted net income attributable to ChinaEdu (non-GAAP), adjusted net margin (non-GAAP) and adjusted net income per ADS (non-GAAP) | ||||||
Three Months Ended | ||||||
(in thousands, unaudited) | March | March 31,2012 | March | |||
RMB | RMB | US$ | ||||
Net revenue | 91,350 | 113,927 | 18,091 | |||
Net income attributable to ChinaEdu | 3,494 | 10,325 | 1,640 | |||
Adjustment: | ||||||
Share-based compensation | 1,555 | 2,219 | 352 | |||
Share-based compensation attributable to the noncontrolling interest | (134) | (177) | (28) | |||
Amortization of intangible assets and land use rights | 1,169 | 1,137 | 180 | |||
Adjusted net income attributable to ChinaEdu (non-GAAP) | 6,084 | 13,504 | 2,144 | |||
Adjusted net margin (non-GAAP) | 6.7% | 11.9% | 11.9% | |||
Adjusted net income attributable to ChinaEdu per ADS (non-GAAP): | ||||||
Basic | 0.38 | 0.86 | 0.136 | |||
Diluted | 0.35 | 0.81 | 0.128 | |||
Weighted average aggregate number of ADSs outstanding: | ||||||
Basic | 15,910,224 | 15,746,005 | 15,746,005 | |||
Diluted | 17,229,640 | 16,761,137 | 16,761,137 | |||
[1] The reporting currency of the Company is RMB, but for the convenience of the reader, the amounts for the three months ended on March 31, 2012 are presented in U.S. dollars. Unless otherwise stated, all translations from RMB to U.S. dollars were made at the rate of RMB6.2975 to $1.00, the noon buying rate in effect on March 31, 2012 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release. An explanation of the Company's non-GAAP financial measures is included in the section entitled "Non-GAAP Financial Measures" below, and the related reconciliations to GAAP financial measures are presented in the accompanying financial statements.
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[2] "Adjusted net income attributable to ChinaEdu" is a non-GAAP measure defined as net income attributable to ChinaEdu excluding share-based compensation net of non-controlling interests' portion, and amortization of intangible assets and land use rights.
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[3] "ADS" is American Depositary Share. Each ADS represents three ordinary shares.
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[4] "Adjusted net income attributable to ChinaEdu per diluted ADS" is a non-GAAP measure which is computed using adjusted net income attributable to ChinaEdu over the number of ADSs used in net income attributable to ChinaEdu per diluted ADS calculation.
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[5] "Revenue students" refers to students of university online degree programs who have paid tuitions. The numbers for the three months ended March 31, 2012 and 2011 are revenue students in Fall 2011 and Fall 2010, respectively.
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[6] Proprietary centers refer to self-owned learning centers operated either under the Company's own brand name or the brand name of a university pursuant to a licensing arrangement with that university.
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[7] Contracted centers refer to agreement with third party learning centers pursuant to which the Company only provides assistance in applying for approval from provincial level education authorities as well as securing additional university online degree programs. In return, the Company receives a percentage of the tuition earned by these third party learning centers. |
