omniture

China Bilingual Announces Financial Results for the First Quarter of Fiscal 2012

TAIYUAN, China, January 18, 2012 /PRNewswire-Asia-FirstCall/ -- China Bilingual Technology & Education Group Inc. (OTCBB: CBLY) ("China Bilingual" or the "Company"), an education company that owns and operates high-quality, K-12 private boarding schools in China, today announced its financial results for the first quarter ended November 30, 2011.

First Quarter Fiscal Year 2012 Financial Highlights: (Three-Month Results)

  • Revenues increased 74.0% year-over-year to $10.4 million, compared to $6.0 million for the three months ended November 30, 2010. The increase was primarily attributable to the acquisition of the Shanxi South School (formerly Shanxi Rising School), which increased the Company's total enrollment from approximately 9,200 students to 13,220 students for the current school year, as well as a slight tuition increase.
  • Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") increased 25.8% year-over-year to $3.8 million, compared to $3.0 million for the three months ended November 30, 2010.
  • Net income decreased 76.1% year-over-year to $652,438, compared to $2.7 million for the three months ended November 30, 2010. The decrease was primarily due to $3.2 million in interest, depreciation and amortization expenses associated with the acquisition of the Shanxi South School. The Company also operated with higher overhead costs associated with the three schools' operations, which will continue until enrollment growth absorbs certain fixed costs. Based on the new capacity of 20,000 students with the acquisition of the third school, the Company is operating at 66.1% of capacity (13,220 students enrolled), compared to 92.0% of capacity (9,200 students enrolled) at the two schools for the three months ended November 30, 2010.
  • The schools owned by the Company are exempt from paying corporate income taxes because of its classification in China's primary education sector.
  • Net property, equipment, and land use rights were $127.1 million at historical book value as of November 30, 2011, an increase of 299.7% from $31.8 million as of December 31, 2010.
  • Stockholders' Equity was $43.3 million as of November 30, 2011, an increase of 36.6% from $31.7 million on December 31, 2010.

"Revenues grew significantly during the first quarter, reflecting the successful integration of the Shanxi South School into our academic network," stated Mr. Ren Zhiqing, Chairman and CEO of China Bilingual. "While expenses associated with the acquisition impacted our bottom line during the quarter, we expect improved margins as we increase enrollment at our schools. Our focus remains on ramping up our total enrollment to 20,000 students over time without compromising our academic standards. China's growing middle class is accelerating the demand for private education, and our reputation for academic excellence strongly positions us for long-term revenue and earnings growth."

Conference Call and Webcast

Management will host a conference call to discuss these financial results Friday, January 20, 2012 at 10:00 a.m. Eastern time (7:00 a.m. Pacific).

To participate in the call, please dial (877) 941-4774, or (480) 629-9760 for international calls, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which can be found at http://ViaVid.net.

A replay of the call will be available for two weeks from 1:00 p.m. EST on January 20, 2012, until 11:59 p.m. EST on February 3, 2012. The number for the replay is (877) 870-5176, or (858) 384-5517 for international calls; the pin number for the replay is 4507750. In addition, a recording of the call will be available at http://www.RedChip.com for one year.

About China Bilingual Technology & Education Group Inc.

China Bilingual Technology and Education Group Inc. is an education company that owns and operates high-quality, K-12 private boarding schools in China. Founded in 1998, the Company currently operates three schools encompassing the kindergarten, elementary, middle and high school levels with approximately 13,220 students and 1,876 faculty and staff.

The Company's schools are located in Shanxi and Sichuan Provinces and provide students with an innovative and high-quality education with a focus on fluency and cultural skills in both Chinese and English. The schools regularly rank among the top schools in their respective regions for college entrance rates and national college entrance exam scores. The Company's schools have earned excellent teaching reputations and are recognized for the success of their students and strong faculty.

As China experiences rapid industrialization and economic growth, the government is focused on education as a means to increase worker productivity and raise the standard of living. Parents in China's new middle and upper classes are sending their children to receive private school education to give them an advantage in China's increasingly competitive workforce. The Company's sector in education is not subject to corporate income tax, and the Company anticipates its growth will come from both organic growth through increased enrollment and expansion of its business model and teaching methods into new schools to be acquired by the Company.

Forward-Looking Statements

Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. For additional information, readers should carefully review reports or documents the Company files periodically with the Securities and Exchange Commission.

China Bilingual Technology & Education Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets


November 30, 2011


August 31, 2011


ASSETS

(unaudited)



CURRENT ASSETS:







Cash and cash equivalents


$

9,035,209



$

15,090,521


Inventory



36,752




3,489


Prepayment and other current assets



5,800,956




9,606,682


Total Current Assets



14,872,917




24,700,692











LONG-TERM ASSETS:









Property, plant and equipment, net



81,556,090




81,958,342


Land use rights, net



45,550,079




45,783,579


Deposit paid for long-term assets



-




18,778











Total Long-Term Assets



127,106,169




127,760,699











TOTAL ASSETS


$

141,979,086



$

152,461,391











LIABILITIES AND STOCKHOLDERS' EQUITY


















CURRENT LIABILITIES:









Accounts Payable


$

133,198



$

48,824


Short-term payable-acquisition



18,581,698




21,177,319


Due to related parties



7,846,091




7,842,522


Other Payables



469,277




333,202


Refundable deposits



542,950




795,848


Prepaid Tuition



29,867,566




39,498,972


Home purchase down payment



886,838




878,668


Short-term bank loan



15,692,182




15,685,044


Accrued expenses and other current liabilities



1,190,966




908,268











Total Current Liabilities



75,210,766




87,168,667











Long-term payable-acquisition



23,459,655




22,656,106











TOTAL LIABILITIES


$

98,670,421



$

109,824,773











STOCKHOLDERS' EQUITY:









Common Stock, $0.001par value; 75,000,000 shares authorized; 30,014,528 issued and outstanding as of November 30, 2011 and August 31, 2011



30,015




30,015


Additional paid-in capital



67,421




67,421


Retained earnings



40,753,178




40,100,740


Accumulated other comprehensive income



2,458,051




2,438,442











TOTAL STOCKHOLDERS' EQUITY



43,308,665




42,636,618











TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$

141,979,086



$

152,461,391



The accompanying notes to these consolidated financial statements are an integral part of these balance sheets.



China Bilingual Technology & Education Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Other Comprehensive Income

(Unaudited)





For the Three Months
Ended November 30,





2011




2010







REVENUES


$

10,425,986



$

5,991,349


COST OF REVENUES



7,233,030




2,933,597


GROSS PROFIT



3,192,956




3,057,752


OPERATING EXPENSES









General and Administrative Expenses



504,522




333,916


TOTAL OPERATING EXPENSES



504,522




333,916


INCOME FROM OPERATIONS



2,688,434




2,723,836


OTHER INCOME (EXPENSE)









Interest Income



28,616




11,640


Interest Expense



(2,064,612)




-


NET INCOME BEFORE INCOME TAXES


$

652,438



$

2,735,476


INCOME TAX EXPENSE



-




-


NET INCOME


$

652,438



$

2,735,476


Foreign currency translation, net of tax



19,609




616,498


COMPREHENSIVE INCOME


$

672,047



$

3,351,974











Earnings per Common Share:









Basic


$

0.02



$

0.09


Diluted


$

0.02



$

0.09











Weighted Average Common Shares Outstanding:









Basic



30,014,528




30,000,005


Diluted



30,014,528




30,000,005



The accompanying notes to consolidated financial statements are an integral part of these statements.



China Bilingual Technology & Education Group Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)



For The Three Months Ended
November 30,




2011



2010









Cash Flows From Operating Activities:







Net income


$

652,438



$

2,735,476


Adjustments to reconcile net income to net cash provided by (used in) operating activities:









Depreciation



863,051




274,143


Amortization



254,271




37,384


Accretion of interest payable - acquisition



1,515,524




-


Stock-based compensation



31,100




-


(Increases) Decreases in Assets:









Inventories



(33,254)




(15,990)


Prepayment and other current assets



3,827,924




(12,777)


Increases (Decreases) in Liabilities:









Accounts payable



84,330




16,855


Other payables



135,889




(214,680)


Refundable deposits



(253,197)




(390,916)


Prepaid tuition



(9,646,959)




(5,258,095)


Home purchase down payment



7,769




74,730


Accrued expenses and other current liabilities



251,156




123,242


Net Cash Provided By (Used In) Operating Activities



(2,309,958)




(2,630,628)











Cash Flows From Investing Activities:









Deposits - long term assets



-




(2,708,078)


Fixed asset additions



(423,612)




(50,221)


Receipts - related parties receivables



-




1,392,533


Net Cash Provided By (Used In) Investing Activities



(423,612)




(1,365,766)











Cash Flows From Financing Activities:









Payable - acqusition



(3,327,923)




-


Net Cash Provided By (Used In) Financing Activities



(3,327,923)




-











Effect of Exchange Rate Changes on Cash



6,181




214,427











Net Increase (Decrease) in Cash and Cash Equivalents



(6,055,312)




(3,781,967)











Cash and Cash Equivalents, Beginning of Period



15,090,521




10,888,988











Cash and Cash Equivalents, End of Period


$

9,035,209



$

7,107,021











Supplemental Disclosures of Cash Flow Information:









Cash paid for interest


$

219,635



$

-


Cash paid for taxes


$

-



$

-



The accompanying notes to consolidated financial statements are an integral part of these statements.



Contact:


At the Company:

Michael Toups, Chief Financial Officer

U.S. Office +1 727-641-1357

Email: miketoups@gmail.com


Investor Relations:

Mike Bowdoin

RedChip Companies, Inc.

Tel: +1-800-733-2447, Ext. 110

Email: info@redchip.com

Web: http://www.RedChip.com



Source: China Bilingual Technology & Education Group Inc.
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