TAIYUAN, China, April 17, 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 second quarter ended February 29, 2012.
Second Quarter Fiscal Year 2012 Financial Highlights: (Year-over-Year, Three-Month Results)
Six Months Fiscal Year 2012 Financial Highlights: (Year-over-Year, Six-Month Results)
"Increasing enrollment at our schools continues to improve margins as we are able to better absorb our fixed operating costs," stated Dr. Ren Zhiqing, Chairman and CEO of China Bilingual. "With our schools currently at approximately 70% capacity, our focus remains on ramping up our total enrollment to 20,000 students over time without compromising our academic standards. Driven by China's growing middle class, the demand for private education is accelerating, 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 Thursday, April 19, 2012 at 9:00 a.m. Eastern time (6:00 a.m. Pacific).
To participate in the call, please dial (877) 941-2068, or (480) 629-9712 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 12:00 p.m. Eastern time on April 19, 2012, until 11:59 p.m. Eastern time on May 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 4533045. 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 13,881 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 class 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 | ||||||||
February 29, 2012 | August 31, 2011 | |||||||
ASSETS | (unaudited) | |||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 6,493,478 | $ | 15,090,521 | ||||
Inventory | 58,439 | 3,489 | ||||||
Prepayment and other current assets | 4,989,990 | 9,606,682 | ||||||
Total Current Assets | 11,541,907 | 24,700,692 | ||||||
LONG-TERM ASSETS: | ||||||||
Property, plant and equipment, net | 81,804,563 | 81,958,342 | ||||||
Land use rights, net | 45,815,541 | 45,783,579 | ||||||
Deposit paid for long-term assets | - | 18,778 | ||||||
Total Long-Term Assets | 127,620,104 | 127,760,699 | ||||||
TOTAL ASSETS | $ | 139,162,011 | $ | 152,461,391 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 166,800 | $ | 48,824 | ||||
Short-term payable-acquisition | 18,409,929 | 21,177,319 | ||||||
Due to related parties | 8,089,694 | 7,842,522 | ||||||
Other payables | 353,191 | 333,202 | ||||||
Refundable deposits | 880,276 | 795,848 | ||||||
Prepaid school fees | 22,313,926 | 39,498,972 | ||||||
Home purchase down payment | 912,268 | 878,668 | ||||||
Short-term bank loan | 15,872,260 | 15,685,044 | ||||||
Accrued expenses and other current liabilities | 1,361,089 | 908,268 | ||||||
Total Current Liabilities | 68,359,433 | 87,168,667 | ||||||
Long-term payable-acquisition | 24,531,213 | 22,656,106 | ||||||
TOTAL LIABILITIES | $ | 92,890,646 | $ | 109,824,773 | ||||
STOCKHOLDERS' EQUITY: | ||||||||
Common Stock, $0.001par value; 75,000,000 shares authorized; 30,014,528 issued and outstanding as of February 29, 2012 and August 31, 2011 | 30,015 | 30,015 | ||||||
Additional paid-in capital | 67,421 | 67,421 | ||||||
Retained earnings | 43,208,346 | 40,100,740 | ||||||
Accumulated other comprehensive income | 2,965,583 | 2,438,442 | ||||||
TOTAL STOCKHOLDERS' EQUITY | 46,271,365 | 42,636,618 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 139,162,011 | $ | 152,461,391 | ||||
China Bilingual Technology & Education Group Inc. and Subsidiaries | ||||||||
Condensed Consolidated Statements of Operations and Other Comprehensive Income | ||||||||
(Unaudited) | ||||||||
For the Three Months Ended | ||||||||
February 29, 2012 | February 28, 2011 | |||||||
REVENUES | $ | 10,953,811 | $ | 6,079,354 | ||||
COST OF REVENUES | 5,793,920 | 3,516,802 | ||||||
GROSS PROFIT | 5,159,891 | 2,562,552 | ||||||
OPERATING EXPENSES | ||||||||
General and Administrative Expenses | 625,971 | 366,712 | ||||||
TOTAL OPERATING EXPENSES | 625,971 | 366,712 | ||||||
INCOME FROM OPERATIONS | 4,533,920 | 2,195,840 | ||||||
OTHER INCOME (EXPENSE) | ||||||||
Interest Income | 2,283 | 7,754 | ||||||
Interest Expense | (2,081,035) | - | ||||||
NET INCOME BEFORE INCOME TAXES | $ | 2,455,168 | $ | 2,203,594 | ||||
INCOME TAX EXPENSE | - | - | ||||||
NET INCOME | $ | 2,455,168 | $ | 2,203,594 | ||||
Foreign currency translation, net of tax | 507,532 | 440,123 | ||||||
COMPREHENSIVE INCOME | $ | 2,962,700 | $ | 2,643,717 | ||||
Earnings per Common Share: | ||||||||
Basic | $ | 0.08 | $ | 0.07 | ||||
Diluted | $ | 0.08 | $ | 0.07 | ||||
Weighted Average Common Shares Outstanding: | ||||||||
Basic | 30,076,288 | 30,003,280 | ||||||
Diluted | 30,076,288 | 30,003,280 | ||||||
China Bilingual Technology & Education Group Inc. and Subsidiaries | ||||||||
Condensed Consolidated Statements of Operations and Other Comprehensive Income | ||||||||
(Unaudited) | ||||||||
For the Six Months Ended | ||||||||
February 29, 2012 | February 28, 2011 | |||||||
REVENUES | $ | 21,379,797 | $ | 12,070,703 | ||||
COST OF REVENUES | 13,026,950 | 6,450,399 | ||||||
GROSS PROFIT | 8,352,847 | 5,620,304 | ||||||
OPERATING EXPENSES | ||||||||
General and Administrative Expenses | 1,130,493 | 700,628 | ||||||
TOTAL OPERATING EXPENSES | 1,130,493 | 700,628 | ||||||
INCOME FROM OPERATIONS | 7,222,354 | 4,919,676 | ||||||
OTHER INCOME (EXPENSE) | ||||||||
Interest Income | 30,899 | 19,394 | ||||||
Interest Expense | (4,145,647) | - | ||||||
NET INCOME BEFORE INCOME TAXES | $ | 3,107,606 | $ | 4,939,070 | ||||
INCOME TAX EXPENSE | - | - | ||||||
NET INCOME | $ | 3,107,606 | $ | 4,939,070 | ||||
Foreign currency translation, net of tax | 527,141 | 1,056,621 | ||||||
COMPREHENSIVE INCOME | $ | 3,634,747 | $ | 5,995,691 | ||||
Earnings per Common Share: | ||||||||
Basic | $ | 0.10 | $ | 0.16 | ||||
Diluted | $ | 0.10 | $ | 0.16 | ||||
Weighted Average Common Shares Outstanding: | ||||||||
Basic | 30,072,464 | 30,001,642 | ||||||
Diluted | 30,072,464 | 30,001,642 | ||||||
China Bilingual Technology & Education Group Inc. and Subsidiaries | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
For The Six Months Ended | ||||||||
February 29, 2012 | February 28, 2011 | |||||||
Cash Flows From Operating Activities: | ||||||||
Net income | $ | 3,107,606 | $ | 4,939,070 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation | 1,653,333 | 551,276 | ||||||
Amortization | 510,545 | 75,207 | ||||||
Accretion of interest payable - acquisition | 3,042,982 | - | ||||||
Stock-based compensation | 60,200 | 40,500 | ||||||
(Increases) Decreases in Assets: | ||||||||
Inventories | (54,485) | (13,156) | ||||||
Prepayment and other current assets | 4,713,772 | 1,780,621 | ||||||
Increases (Decreases) in Liabilities: | ||||||||
Accounts payable | 116,489 | 62,163 | ||||||
Other payables | 15,889 | (856,581) | ||||||
Refundable deposits | 74,351 | (718,380) | ||||||
Prepaid school fees | (17,520,517) | (8,328,412) | ||||||
Home purchase down payment | 22,935 | 111,543 | ||||||
Accrued expenses and other current liabilities | 379,741 | (111,615) | ||||||
Net Cash Provided By (Used In) Operating Activities | (3,877,159) | (2,467,764) | ||||||
Cash Flows From Investing Activities: | ||||||||
Deposits - long term assets | - | (7,065,497) | ||||||
Fixed asset additions | (530,023) | (291,150) | ||||||
Receipts - related parties receivables | - | 3,517,854 | ||||||
Net Cash Provided By (Used In) Investing Activities | (530,023) | (3,838,793) | ||||||
Cash Flows From Financing Activities: Proceeds from related party loan | 153,593 | - | ||||||
Payments made on acquisition - payable | (4,482,076) | - | ||||||
Net Cash Provided By (Used In) Financing Activities | (4,328,483) | - | ||||||
Effect of Exchange Rate Changes on Cash | 138,622 | 292,123 | ||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (8,597,043) | (6,014,434) | ||||||
Cash and Cash Equivalents, Beginning of Period | 15,090,521 | 10,888,988 | ||||||
Cash and Cash Equivalents, End of Period | $ | 6,493,478 | $ | 4,874,554 | ||||
Supplemental Disclosures of Cash Flow Information: | ||||||||
Cash paid for interest | $ | 773,091 | $ | - | ||||
Cash paid for taxes | $ | - | $ | - | ||||
Contact:
At the Company:
Michael Toups, Chief Financial Officer
U.S. Office +1 727-641-1357
Email: mtoups@chinabilingualedu.com
Web: http://www.ChinaBilingualEdu.com
Investor Relations:
Mike Bowdoin
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 110
Email: info@redchip.com
Web: http://www.RedChip.com
Scott Powell, Sr. VP
MZ Group
Tel: +1-212-301-7130
Email: scott.powell@mzgroup.us
Web: http://www.mz-ir.com
