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51job, Inc. Reports Fourth Quarter and Fiscal Year 2008 Financial Results
Fourth Quarter 2008 Financial Highlights:
-- Total revenues decreased 8.1% over Q4 2007 to RMB196.2 million (US$28.8
million), but exceeded the Company's guidance range of RMB185 to RMB195
million
-- Gross margin of 51.0% compared with 55.8% in Q4 2007
-- Operating income decreased to RMB5.9 million (US$0.9 million)
-- Fully diluted earnings per common share were RMB0.12 (US$0.04 per ADS)
-- Excluding share-based compensation expense and foreign currency
translation gain, non-GAAP adjusted fully diluted earnings per common
share were RMB0.24 (US$0.07 per ADS), within the Company's guidance
range of RMB0.20 to RMB0.30
-- Cash and short-term investments totaling RMB1,074.4 million (US$157.5
million) as of December 31, 2008
Fiscal Year 2008 Financial Highlights:
-- Total revenues increased 1.9% over 2007 to RMB860.4 million (US$126.1
million)
-- Gross margin of 53.7% compared with 56.3% in 2007
-- Operating income decreased 31.2% over 2007 to RMB96.8 million (US$14.2
million)
-- Fully diluted earnings per common share were RMB1.35 (US$0.40 per ADS)
-- Excluding share-based compensation expense and foreign currency
translation loss, non-GAAP adjusted income decreased 19.6% over 2007 to
RMB121.8 million (US$17.8 million) and non-GAAP adjusted fully diluted
earnings per common share were RMB2.15 (US$0.63 per ADS)
Commenting on the results,
"Partially offsetting the effect of the economic downturn on our recruitment businesses, we were pleased that our other HR related services maintained solid growth momentum throughout last year. We believe that our ongoing investments in corporate training and HR outsourcing services have provided us with a significant competitive advantage, enabling us to build deeper relationships with customers and capture a greater share of corporate HR budgets. With our diverse product portfolio, premier brand name and strong balance sheet, we believe that we are in a strong position to capitalize on opportunities in 2009 and beyond," said Mr. Yan.
Fourth Quarter 2008 Unaudited Financial Results
Total revenues for the fourth quarter ended
Print advertising revenues for the fourth quarter of 2008 decreased 37.4%
to
Online recruitment services revenues for the fourth quarter of 2008
decreased 5.4% to
Executive search revenues for the fourth quarter of 2008 was
Gross profit for the fourth quarter of 2008 was
Operating expenses for the fourth quarter of 2008 were
Sales and marketing expenses for the fourth quarter of 2008 increased 6.4%
to
General and administrative expenses for the fourth quarter of 2008
decreased 19.5% to
Income from operations for the fourth quarter of 2008 decreased to
Net income for the fourth quarter of 2008 decreased to
In the fourth quarter of 2008, the Company recognized total share-based
compensation expense of
Excluding share-based compensation expense and the impact of foreign
currency translation, non-GAAP adjusted income for the fourth quarter of 2008
decreased to
Fiscal Year 2008 Unaudited Financial Results
Total revenues for 2008 were
The estimated number of print advertising pages generated in 2008 was 16,512 compared with 16,568 estimated pages in 2007. Unique employers using the Company's online recruitment services grew 9.0% to 102,562 in 2008 from 94,125 in 2007. Employers who purchase online services multiple times or in multiple quarters throughout the fiscal year are counted as one unique employer for the annual total.
Net income for 2008 decreased 26.0% to
Excluding share-based compensation expense and foreign currency
translation loss, non-GAAP adjusted income for 2008 decreased 19.6% to
As of
Business Outlook
For the first quarter of 2009, based on current market and operating
conditions, the Company's revenue target is in the estimated range of
Other Company News
On
In
Currency Convenience Translation
For the convenience of readers, certain Renminbi amounts have been
translated into U.S. dollars at the rate of
Conference Call Information
Management of 51job will host a conference call at
Note Regarding Preliminary Unaudited Financial Information
The unaudited financial information contained in this press release is
preliminary and subject to change. The audit of the financial statements and
related notes to be included in the Company's annual report on Form 20-F for
the year ended
Use of Non-GAAP Financial Measures
To supplement the consolidated financial information presented in accordance with United States Generally Accepted Accounting Principles (GAAP), 51job uses non-GAAP measures of adjusted income, adjusted earnings per common share and adjusted earnings per ADS, which are adjusted from results based on GAAP to exclude the impact of share-based compensation expense and foreign currency translation gain or loss. The Company believes excluding share-based compensation expense from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company's core operating results as such expense is not directly attributable to the underlying performance of the Company's business operations and do not impact its cash earnings. The Company believes excluding foreign currency translation gain or loss from its non-GAAP financial measures is useful for its management and investors as such translation gain or loss is unrelated to the Company's core business operations and will not result in cash settlement nor impact the Company's cash earnings. 51job also believes these non-GAAP measures excluding share-based compensation expense and foreign currency translation gain or loss are important in helping investors to understand the Company's current financial performance and future prospects and to compare business trends among different reporting periods on a consistent basis. The presentation of these additional measures should not be considered a substitute for or superior to GAAP results or as being comparable to results reported or forecasted by other companies. The non-GAAP measures have been reconciled to GAAP measures in the attached financial information.
About 51job
51job, Inc. (Nasdaq: JOBS) is a leading provider of integrated human
resource services in
Safe Harbor Statement
Statements in this release regarding targets for the first quarter of 2009,
future business and operating results constitute "forward-looking" statements
within the meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the Private Securities Litigation Reform Act of
1995. These statements are based upon management's current expectations, and
actual results could differ materially. Among the factors that could cause
actual results to differ are the number of recruitment advertisements placed,
sales orders received and customer contracts executed during the remaining
weeks of the first quarter of 2009; any accounting adjustments that may occur
during the quarterly close; fluctuations in the value of the Renminbi against
the U.S. dollar and other currencies; behavioral and operational changes of
customers in meeting their human resource needs as they respond to evolving
social, economic and political changes in
- Financial tables to follow -
51job, Inc.
Consolidated Statements of Operations
For the Three Months Ended
December 31, December 31, December 31,
2007 2008 2008
(In thousands, except number (unaudited) (unaudited) (unaudited)
of shares and per share data) RMB RMB USD (Note 1)
Revenues:
Print advertising 95,430 59,699 8,750
Online recruitment services 76,882 72,741 10,662
Executive search 3,966 2,379 349
Other human resource related
revenues 37,325 61,392 8,999
Total revenues 213,603 196,211 28,760
Less: Business and related tax (11,327) (10,866) (1,593)
Net revenues 202,276 185,345 27,167
Cost of services (Note 2) (89,439) (90,879) (13,321)
Gross profit 112,837 94,466 13,846
Operating expenses:
Sales and marketing (Note 3) (54,674) (58,192) (8,529)
General and administrative (Note 4) (37,762) (30,398) (4,456)
Total operating expenses (92,436) (88,590) (12,985)
Income from operations 20,401 5,876 861
(Loss) Gain from foreign currency
translation (7,397) 637 93
Interest and investment income 6,760 6,193 908
Other income (expense) 831 (487) (71)
Income before provision for income tax 20,595 12,219 1,791
Income tax expense (6,882) (5,463) (801)
Net income 13,713 6,756 990
Earnings per share:
Basic 0.24 0.12 0.02
Diluted 0.24 0.12 0.02
Earnings per ADS (Note 5):
Basic 0.49 0.24 0.04
Diluted 0.48 0.24 0.04
Weighted average number of common
shares outstanding:
Basic 56,457,123 56,584,296 56,584,296
Diluted 56,706,721 56,659,627 56,659,627
Notes:
1. The conversion of RMB amounts into USD amounts is based on the noon
buying rate of USD1.00=RMB6.8225 on December 31, 2008 in The City of
New York for cable transfers of RMB as certified for customs purposes
by the Federal Reserve Bank of New York.
2. Includes share-based compensation expense of RMB1,279 and RMB1,210
(US$177) for the three months ended December 31, 2007 and 2008,
respectively.
3. Includes share-based compensation expense of RMB1,100 and RMB1,040
(US$153) for the three months ended December 31, 2007 and 2008,
respectively.
4. Includes share-based compensation expense of RMB4,946 and RMB5,220
(US$765) for the three months ended December 31, 2007 and 2008,
respectively.
5. Each ADS represents two common shares.
51job, Inc.
Consolidated Statements of Operations
For the Year Ended
December 31, December 31, December 31,
2007 2008 2008
(In thousands, except number (audited) (unaudited) (unaudited)
of shares and per share data) RMB RMB USD (Note 1)
Revenues:
Print advertising 430,621 359,234 52,654
Online recruitment services 282,688 312,121 45,749
Executive search 16,086 13,979 2,049
Other human resource related
revenues 114,871 175,083 25,663
Total revenues 844,266 860,417 126,115
Less: Business and related tax (44,982) (44,939) (6,587)
Net revenues 799,284 815,478 119,528
Cost of services (Note 2) (349,022) (377,487) (55,330)
Gross profit 450,262 437,991 64,198
Operating expenses:
Sales and marketing (Note 3) (181,230) (215,228) (31,547)
General and administrative (Note 4) (128,347) (125,981) (18,465)
Total operating expenses (309,577) (341,209) (50,012)
Income from operations 140,685 96,782 14,186
Loss from foreign currency translation (18,134) (17,732) (2,599)
Interest and investment income 24,635 26,400 3,869
Other income 1,793 2,327 341
Income before provision for income tax 148,979 107,777 15,797
Income tax expense (45,402) (31,176) (4,570)
Net income 103,577 76,601 11,227
Earnings per share:
Basic 1.84 1.35 0.20
Diluted 1.83 1.35 0.20
Earnings per ADS (Note 5):
Basic 3.68 2.71 0.40
Diluted 3.66 2.70 0.40
Weighted average number of common
shares outstanding:
Basic 56,279,193 56,581,719 56,581,719
Diluted 56,631,598 56,709,513 56,709,513
Notes:
1. The conversion of RMB amounts into USD amounts is based on the noon
buying rate of USD1.00=RMB6.8225 on December 31, 2008 in The City of
New York for cable transfers of RMB as certified for customs purposes
by the Federal Reserve Bank of New York.
2. Includes share-based compensation expense of RMB4,931 and RMB4,564
(US$669) for 2007 and 2008, respectively.
3. Includes share-based compensation expense of RMB4,241 and RMB3,923
(US$575) for 2007 and 2008, respectively.
4. Includes share-based compensation expense of RMB20,479 and RMB18,947
(US$2,777) for 2007 and 2008, respectively.
5. Each ADS represents two common shares.
51job, Inc.
Reconciliation of GAAP and Non-GAAP Results
For the Three Months Ended
December 31, December 31, December 31,
2007 2008 2008
(In thousands, except number (unaudited) (unaudited) (unaudited)
of shares and per share data) RMB RMB USD (Note 1)
GAAP income before provision
for income tax 20,595 12,219 1,791
Add back: Share-based compensation
expense 7,325 7,470 1,095
Add back: Loss (Gain) from foreign
currency translation 7,397 (637) (93)
Non-GAAP income before provision for
income tax 35,317 19,052 2,793
Non-GAAP income tax expense (6,886) (5,459) (800)
Non-GAAP adjusted income 28,431 13,593 1,993
Non-GAAP adjusted earnings per share:
Basic 0.50 0.24 0.04
Diluted 0.50 0.24 0.04
Non-GAAP adjusted earnings per ADS
(Note 2):
Basic 1.00 0.48 0.07
Diluted 1.00 0.48 0.07
Weighted average number of common
shares outstanding:
Basic 56,457,123 56,584,296 56,584,296
Diluted 56,706,721 56,659,627 56,659,627
For the Year Ended
December 31, December 31, December 31,
2007 2008 2008
(In thousands, except number (unaudited) (unaudited) (unaudited)
of shares and per share data) RMB RMB USD (Note 1)
GAAP income before provision
for income tax 148,979 107,777 15,797
Add back: Share-based compensation
expense 29,651 27,434 4,021
Add back: Loss from foreign currency
translation 18,134 17,732 2,599
Non-GAAP income before provision for
income tax 196,764 152,943 22,417
Non-GAAP income tax expense (45,415) (31,185) (4,571)
Non-GAAP adjusted net income 151,349 121,758 17,846
Non-GAAP adjusted earnings per share:
Basic 2.69 2.15 0.32
Diluted 2.67 2.15 0.32
Non-GAAP adjusted earnings per ADS
(Note 2):
Basic 5.38 4.30 0.63
Diluted 5.35 4.29 0.63
Weighted average number of common
shares outstanding:
Basic 56,279,193 56,581,719 56,581,719
Diluted 56,631,598 56,709,513 56,709,513
Notes:
1. The conversion of RMB amounts into USD amounts is based on the noon
buying rate of USD1.00=RMB6.8225 on December 31, 2008 in The City of
New York for cable transfers of RMB as certified for customs purposes
by the Federal Reserve Bank of New York.
2. Each ADS represents two common shares.
51job, Inc.
Consolidated Balance Sheets
December 31, December 31, December 31,
2007 2008 2008
(In thousands, except number of (audited) (unaudited) (unaudited)
shares) RMB RMB USD (Note 1)
ASSETS
Current assets:
Cash 1,007,520 1,058,310 155,121
Short-term investments -- 16,100 2,360
Accounts receivable (net of
allowance of RMB3,879 and
RMB2,783 as of December 31,
2007 and 2008, respectively) 29,706 19,524 2,862
Prepayments and other current
assets 33,132 44,996 6,595
Deferred tax assets, current 4,930 2,322 340
Total current assets 1,075,288 1,141,252 167,278
Long-term investments 8,788 15,927 2,335
Property and equipment 205,984 205,805 30,166
Intangible assets 6,869 4,669 684
Other long-term assets 5,031 6,311 925
Deferred tax assets, non-current 1,206 405 59
Total assets 1,303,166 1,374,369 201,447
LIABILITIES
Current liabilities:
Accounts payable 9,804 10,511 1,541
Salary and employee related
accrual 29,064 22,371 3,279
Taxes payable 33,498 13,337 1,955
Advance from customers 75,535 87,639 12,845
Other payables and accruals 28,214 12,939 1,897
Total current liabilities 176,115 146,797 21,517
Deferred tax liabilities, non-current 516 730 107
Total liabilities 176,631 147,527 21,624
Shareholders' equity:
Common shares (US$0.0001 par
value; 500,000,000 shares
authorized, 56,519,471 and
56,378,139 shares issued and
outstanding as of December 31,
2007 and 2008, respectively) 47 47 7
Additional paid-in capital 894,019 917,352 134,460
Statutory reserves 5,991 6,946 1,018
Other comprehensive gain 680 1,054 154
Retained earnings 225,798 301,443 44,184
Total shareholders' equity 1,126,535 1,226,842 179,823
Total liabilities and shareholders'
equity 1,303,166 1,374,369 201,447
Note 1: The conversion of RMB amounts into USD amounts is based on the
noon buying rate of USD1.00=RMB6.8225 on December 31, 2008 in The
City of New York for cable transfers of RMB as certified for
customs purposes by the Federal Reserve Bank of New York.
For more information, please contact:
Linda Chien
Investor Relations
51job, Inc.
Tel: +86-21-6879-6250
Email: investor.relations@51job.com
SOURCE 51job, Inc.