PR Newswire: news distribution, targeting and monitoring
2014

51job, Inc. Reports Second Quarter 2012 Financial Results

Share with Twitter Share with LinkedIn

SHANGHAI, Aug. 9, 2012 /PRNewswire-Asia/ -- 51job, Inc. (Nasdaq: JOBS), a leading provider of integrated human resource services in China, announced today unaudited financial results for the second quarter of 2012 ended June 30, 2012.

Second Quarter 2012 Financial Highlights:

  • Total revenues increased 8.4% over Q2 2011 to RMB360.4 million (US$56.7 million), within the Company's guidance
  • Online recruitment services revenues increased 17.6% over Q2 2011 to RMB235.9 million (US$37.1 million)
  • Gross margin increased to 72.6% compared with 71.8% in Q2 2011
  • Income from operations increased 8.8% over Q2 2011 to RMB118.4 million (US$18.6 million)
  • Fully diluted earnings per common share were RMB1.93 (US$0.61 per ADS)
  • Excluding share-based compensation expense and gain from foreign currency translation as well as their related tax impact, non-GAAP adjusted fully diluted earnings per common share were RMB2.10 (US$0.66 per ADS), exceeding the Company's guidance
  • Cash and short-term investments increased to RMB2,280.4 million (US$358.9 million) as of June 30, 2012

Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said, "Amid increased economic uncertainty in China, we observed softer market demand for our recruitment services in the second quarter.  Despite these stronger headwinds, we moved ahead in executing our key business initiatives, adding new corporate customers and extending our sales coverage.  In addition, we were pleased that the continued, rising contribution of our other HR services area offset some of the recruitment demand volatility.  While employers remain cautious about hiring, we will focus our efforts on product development and service efficiency to strengthen our market position and company fundamentals for sustainable, long-term growth."

Second Quarter 2012 Unaudited Financial Results

Total revenues for the second quarter ended June 30, 2012 were RMB360.4 million (US$56.7 million), an increase of 8.4% from RMB332.4 million for the same quarter in 2011.

Online recruitment services revenues for the second quarter of 2012 were RMB235.9 million (US$37.1 million), representing a 17.6% increase from RMB200.5 million for the same quarter of the prior year.  The growth was primarily due to an increase in the number of unique employers using the Company's online recruitment services as well as higher average revenue per unique employer.  Unique employers increased 9.3% to 184,667 in the second quarter of 2012 compared with 168,957 in the same quarter of the prior year driven by new customer acquisition and growing adoption of online recruitment services by employers.  Average revenue per unique employer increased 7.6% in the second quarter of 2012 as compared to the same quarter in 2011 due to greater customer acceptance and usage of online recruitment services.

Print advertising revenues for the second quarter of 2012 decreased 57.3% to RMB22.1 million (US$3.5 million) compared with RMB51.8 million for the same quarter in 2011 primarily due to the ongoing shift in secular demand away from print advertising services.  The estimated number of print advertising pages generated in the second quarter of 2012 declined 57.8% to 664 from 1,574 pages in the same quarter in 2011.  In addition, the number of cities where 51job Weekly is published decreased to 10 as of June 30, 2012 from 15 cities as of June 30, 2011.

Other human resource related revenues for the second quarter of 2012 increased 27.9% to RMB102.5 million (US$16.1 million) from RMB80.1 million in the same quarter of 2011 primarily due to greater market demand for our business process outsourcing and training services.

Gross profit for the second quarter of 2012 increased 10.7% to RMB250.8 million (US$39.5 million) from RMB226.6 million for the same quarter of the prior year.  Gross margin, which is gross profit as a percentage of net revenues, expanded to 72.6% in the second quarter of 2012 compared with 71.8% in the same quarter in 2011 primarily due to greater economies of scale.

Operating expenses for the second quarter of 2012 increased 12.4% to RMB132.4 million (US$20.8 million) from RMB117.8 million for the same quarter of 2011.  Operating expenses as a percentage of net revenues was 38.3% for the second quarter of 2012 compared with 37.3% for the second quarter of 2011.  Sales and marketing expenses for the second quarter of 2012 increased 12.9% to RMB88.8 million (US$14.0 million) from RMB78.7 million for the same quarter of the prior year primarily due to higher employee compensation expenses and headcount additions.  General and administrative expenses for the second quarter of 2012 increased 11.5% to RMB43.6 million (US$6.9 million) from RMB39.1 million in the second quarter of 2011 primarily due to higher employee compensation, rental and office expenses.

Income from operations for the second quarter of 2012 increased 8.8% to RMB118.4 million (US$18.6 million) from RMB108.8 million for the same quarter of the prior year.  Operating margin, which is income from operations as a percentage of net revenues, was 34.3% in the second quarter of 2012 compared with 34.5% in the same quarter of 2011.

Net income for the second quarter of 2012 increased 37.3% to RMB114.6 million (US$18.0 million) from RMB83.5 million for the same quarter in 2011.  Fully diluted earnings per common share for the second quarter of 2012 were RMB1.93 (US$0.30) compared with RMB1.41 for the same quarter in 2011.  Fully diluted earnings per ADS for the second quarter of 2012 were RMB3.86 (US$0.61) compared with RMB2.82 in the second quarter of 2011.

In the second quarter of 2012, the Company recognized total share-based compensation expense of RMB11.2 million (US$1.8 million) compared with RMB9.7 million in the second quarter of 2011.  The Company also recognized a gain from foreign currency translation of RMB1.0 million (US$0.2 million) in the second quarter of 2012 compared with a loss of RMB2.1 million in the second quarter of 2011.

Excluding share-based compensation expense, gain/loss from foreign currency translation and loss from impairment of long-term investments as well as their related tax impact, non-GAAP adjusted net income for the second quarter of 2012 increased 13.2% to RMB124.9 million (US$19.7 million) compared with RMB110.3 million for the second quarter of 2011.  Non-GAAP adjusted fully diluted earnings per common share were RMB2.10 (US$0.33) in the second quarter of 2012 compared with RMB1.87 in the second quarter of 2011.  Non-GAAP adjusted fully diluted earnings per ADS in the second quarter of 2012 were RMB4.21 (US$0.66) compared with RMB3.73 in the second quarter of 2011.

Six Months 2012 Unaudited Financial Results

Total revenues for the six months ended June 30, 2012 were RMB741.2 million (US$116.7 million), an increase of 12.8% from RMB657.0 million for the same period in 2011.  Income from operations for the six months ended June 30, 2012 increased 14.9% to RMB249.2 million (US$39.2 million) from RMB216.9 million for the same period in 2011.

Net income for the six months ended June 30, 2012 increased 34.3% to RMB235.1 million (US$37.0 million) from RMB175.1 million for the same period in 2011.  Fully diluted earnings per common share for the six months ended June 30, 2012 increased to RMB3.96 (US$0.62) from RMB2.96 for the same period in 2011.  Fully diluted earnings per ADS for the six months ended June 30, 2012 were RMB7.92 (US$1.25) compared with RMB5.92 for the same period in 2011.

Excluding share-based compensation expense, gain/loss from foreign currency translation and loss from impairment of long-term investments as well as their related tax impact, non-GAAP adjusted net income for the six months ended June 30, 2012 increased 21.6% to RMB257.2 million (US$40.5 million) from RMB211.5 million for the six months ended June 30, 2011.  Non-GAAP adjusted fully diluted earnings per common share were RMB4.33 (US$0.68) for the six months ended June 30, 2012 compared with RMB3.58 in the same period in 2011.  Non-GAAP adjusted fully diluted earnings per ADS for the six months ended June 30, 2012 were RMB8.67 (US$1.36) compared with RMB7.16 in the same period in 2011.

As of June 30, 2012, the Company had cash and short-term investments totaling RMB2,280.4 million (US$358.9 million) compared with RMB2,054.0 million as of December 31, 2011.  Short-term investments consist of certificates of deposit with original maturities from three months to one year.

Business Outlook

Based on current market conditions and factoring in a significant year-over-year decrease in print advertising revenues as the Company transitions away from this business, the Company's revenue target for the third quarter of 2012 is in the estimated range of RMB355 million to RMB370 million (US$55.9 million to US$58.2 million).  Excluding share-based compensation expense and any loss or gain from foreign currency translation as well as their related tax impact, the Company's non-GAAP fully diluted earnings target for the third quarter of 2012 is in the estimated range of RMB1.95 to RMB2.10 per common share (US$0.61 to US$0.66 per ADS).  The Company expects total share-based compensation expense in the third quarter of 2012 to be approximately RMB13 million to RMB14 million (US$2.0 million to US$2.2 million).

Other Company News

In June 2012, the Company discontinued the publication of 51job Weekly in Fuzhou but continues to maintain a sales office in the city.  As a result, the Company currently operates 10 city editions of 51job Weekly.

Currency Convenience Translation

For the convenience of readers, certain Renminbi amounts have been translated into U.S. dollars at the rate of RMB6.3530 to US$1.00, the noon buying rate on June 29, 2012 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.

Conference Call Information

Management will hold a conference call at 9:00 p.m. Eastern Time on August 9, 2012 (9:00 a.m. Shanghai / Hong Kong time zone on August 10, 2012) to discuss its second quarter 2012 results, operating performance and business outlook.

To dial in to the call, please use conference ID 4553519 and the following telephone numbers:

US: +1-877-941-9205
Hong Kong: +852-3009-5027
International: +1-480-629-9818

The call will also be available live and on replay through 51job's investor relations website, ir.51job.com.  Please go to the website at least fifteen minutes early to register or install any necessary audio software.

Use of Non-GAAP Financial Measures

To supplement the consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles (GAAP), 51job uses non-GAAP measures of income before income tax expense, income tax expense, adjusted net income, adjusted earnings per share and adjusted earnings per ADS, which are adjusted from results based on GAAP to exclude share-based compensation expense, gain/loss from foreign currency translation and loss from impairment of long-term investments as well as their related tax impact.  The Company believes excluding share-based compensation expense and its related tax impact 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 gain/loss from foreign currency translation and its related tax impact from its non-GAAP financial measures is useful for its management and investors as such translation loss is not indicative of the Company's core business operations and will not result in cash settlement nor impact the Company's cash earnings.  The Company believes excluding the loss from impairment of long-term investments and its related tax impact from its non-GAAP financial measures is useful for its management and investors as such loss is unrelated to the Company's core business operations.  51job also believes these non-GAAP measures excluding share-based compensation expense, gain/loss from foreign currency translation and loss from impairment of long-term investments, as well as their related tax impact, 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 statements.

About 51job

51job, Inc. (Nasdaq: JOBS) is a leading provider of integrated human resource services in China with a strong focus on recruitment related services.  Through online recruitment services at www.51job.com and print advertisements in 51job Weekly, 51job enables enterprises to attract, identify and recruit employees and connects millions of job seekers with employment opportunities.  51job also provides a number of other value-added human resource services, including business process outsourcing, training, executive search and compensation and benefits analysis.  51job has a call center in Wuhan and a nationwide sales office network spanning 25 cities across China.

Safe Harbor Statement

Statements in this release regarding targets for the third quarter of 2012, 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 third quarter of 2012; 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 China as well as stock market volatilities; introduction by its competitors of new or enhanced products or services; price competition in the market for the various human resource services that the Company provides in China; acceptance of new products and services developed or introduced by the Company outside of the human resources industry and fluctuations in general economic conditions.  For additional information on these and other factors that may affect the Company's financial results, please refer to the Company's filings with the Securities and Exchange Commission.  51job undertakes no obligation to update these targets prior to announcing final results for the third quarter of 2012 or as a result of new information, future events or otherwise.

51job, Inc.

Consolidated Statements of Operations and Comprehensive Income

 


For the Three Months Ended


(In thousands, except share, per share and per ADS data)

June 30, 2011

(unaudited)

June 30, 2012

(unaudited)

June 30, 2012

(unaudited)


RMB

RMB

USD (Note 1)





Revenues:




      Online recruitment services

200,543

235,861

37,126

      Print advertising

51,785

22,098

3,478

      Other human resource related revenues

80,111

102,469

16,129

Total revenues

332,439

360,428

56,733





Less: Business and related tax

(17,067)

(15,094)

(2,376)

Net revenues

315,372

345,334

54,357





Cost of services (Note 2)

(88,781)

(94,503)

(14,875)





Gross profit

226,591

250,831

39,482





Operating expenses:




      Sales and marketing (Note 3)

(78,679)

(88,803)

(13,978)

      General and administrative (Note 4)

(39,092)

(43,584)

(6,860)

Total operating expenses

(117,771)

(132,387)

(20,838)





Income from operations

108,820

118,444

18,644

Gain (Loss) from foreign currency translation

(2,067)

960

151

Loss from impairment of long-term investments

(15,081)

Interest and investment income

11,255

15,383

2,421

Other income

3,238

2,774

437





Income before income tax expense

106,165

137,561

21,653

Income tax expense

(22,702)

(22,948)

(3,612)





Net income

83,463

114,613

18,041





Other comprehensive income:




      Currency translation adjustments

88

(18)

(3)





Comprehensive income

83,551

114,595

18,038





Earnings per share:




      Basic

1.47

1.99

0.31

      Diluted

1.41

1.93

0.30





Earnings per ADS (Note 5):




      Basic

2.94

3.98

0.63

      Diluted

2.82

3.86

0.61





Weighted average number of common shares outstanding:




      Basic

56,723,431

57,573,988

57,573,988

      Diluted

59,131,101

59,339,624

59,339,624

__________

 

Notes:

1. The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of US$1.00 to RMB6.3530 on June 29, 2012 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.

2. Includes share-based compensation expense of RMB1,554 and RMB1,795 (US$283) for the three months ended June 30, 2011 and 2012, respectively.

3. Includes share-based compensation expense of RMB1,336 and RMB1,543 (US$243) for the three months ended June 30, 2011 and 2012, respectively.

4. Includes share-based compensation expense of RMB6,808 and RMB7,867 (US$1,238) for the three months ended June 30, 2011 and 2012, respectively.

5. Each ADS represents two common shares.

 

51job, Inc.

Consolidated Statements of Operations and Comprehensive Income


For the Six Months Ended


(In thousands, except share, per share and per ADS data)

June 30, 2011
(unaudited)

June 30, 2012
(unaudited)

June 30, 2012
(unaudited)


RMB

RMB

USD (Note 1)





Revenues:




      Online recruitment services

373,331

464,940

73,184

      Print advertising

138,190

69,906

11,004

      Other human resource related revenues

145,466

206,394

32,487

Total revenues

656,987

741,240

116,675





Less: Business and related tax

(35,765)

(32,289)

(5,082)

Net revenues

621,222

708,951

111,593





Cost of services (Note 2)

(179,154)

(194,836)

(30,668)





Gross profit

442,068

514,115

80,925





Operating expenses:




      Sales and marketing (Note 3)

(149,343)

(179,172)

(28,203)

      General and administrative (Note 4)

(75,794)

(85,735)

(13,495)

Total operating expenses

(225,137)

(264,907)

(41,698)





Income from operations

216,931

249,208

39,227

Gain (Loss) from foreign currency translation

(5,542)

798

125

Loss from impairment of long-term investments

(15,081)

Interest and investment income

18,717

29,597

4,659

Other income

3,536

2,788

439





Income before provision for income tax

218,561

282,391

44,450

Income tax expense

(43,487)

(47,270)

(7,441)





Net income

175,074

235,121

37,009





Other comprehensive income:




      Currency translation adjustments

159

(21)

(3)





Comprehensive income

175,233

235,100

37,006





Earnings per share:




      Basic

3.09

4.10

0.65

      Diluted

2.96

3.96

0.62





Earnings per ADS (Note 5):




      Basic

6.18

8.20

1.29

      Diluted

5.92

7.92

1.25





Weighted average number of common shares outstanding:




      Basic

56,616,471

57,349,518

57,349,518

      Diluted

59,097,459

59,340,203

59,340,203

__________

 

Notes:

1. The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of US$1.00 to RMB6.3530 on June 29, 2012 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.

2. Includes share-based compensation expense of RMB2,540 and RMB3,497 (US$550) for the six months ended June 30, 2011 and 2012, respectively.

3. Includes share-based compensation expense of RMB2,183 and RMB3,006 (US$473) for the six months ended June 30, 2011 and 2012, respectively.

4. Includes share-based compensation expense of RMB11,127 and RMB16,364 (US$2,576) for the six months ended June 30, 2011 and 2012, respectively.

5. Each ADS represents two common shares.

 


51job, Inc.

Reconciliation of GAAP and Non-GAAP Results

 


For the Three Months Ended


(In thousands, except share, per share and per ADS data)

June 30, 2011
(unaudited)

June 30, 2012
(unaudited)

June 30, 2012
(unaudited)


RMB

RMB

USD (Note 1)





GAAP income before income tax expense

106,165

137,561

21,653

Add back: Share-based compensation expense

9,698

11,205

1,764

Add back: (Gain) Loss from foreign currency translation

2,067

(960)

(151)

Add back: Loss from impairment of long-term investments

15,081

Non-GAAP income before income tax expense

133,011

147,806

23,266





GAAP income tax expense

(22,702)

(22,948)

(3,612)

Tax impact of share-based compensation expense, gain
      (loss)
from foreign currency translation and loss from
      impairment of
long-term investments

 

 

(27)

 

 

1

 

 

0

Non-GAAP income tax expense

(22,729)

(22,947)

(3,612)





Non-GAAP adjusted net income

110,282

124,859

19,654





Non-GAAP adjusted earnings per share:




      Basic

1.94

2.17

0.34

      Diluted

1.87

2.10

0.33





Non-GAAP adjusted earnings per ADS (Note 2):




      Basic

3.89

4.34

0.68

      Diluted

3.73

4.21

0.66





Weighted average number of common shares outstanding:




      Basic

56,723,431

57,573,988

57,573,988

      Diluted

59,131,101

59,339,624

59,339,624






For the Six Months Ended


(In thousands, except share, per share and per ADS data)

June 30, 2011
(unaudited)

June 30, 2012
(unaudited)

June 30, 2012
(unaudited)


RMB

RMB

USD (Note 1)





GAAP income before income tax expense

218,561

282,391

44,450

Add back: Share-based compensation expense

15,850

22,867

3,599

Add back: (Gain) Loss from foreign currency translation

5,542

(798)

(125)

Add back: Loss from impairment of long-term investments

15,081

Non-GAAP income before income tax expense

255,034

304,460

47,924





GAAP income tax expense

(43,487)

(47,270)

(7,441)

Tax impact of share-based compensation expense, gain
      (loss)
from foreign currency translation and loss from 
      impairment of
long-term investments

 

 

(42)

 

 

1

 

 

0

Non-GAAP income tax expense

(43,529)

(47,269)

(7,441)





Non-GAAP adjusted net income

211,505

257,191

40,483





Non-GAAP adjusted earnings per share:




      Basic

3.74

4.48

0.71

      Diluted

3.58

4.33

0.68





Non-GAAP adjusted earnings per ADS (Note 2):




      Basic

7.47

8.97

1.41

      Diluted

7.16

8.67

1.36





Weighted average number of common shares outstanding:




      Basic

56,616,471

57,349,518

57,349,518

      Diluted

59,097,459

59,340,203

59,340,203

__________

 

Notes:

1. The conversion of RMB amounts into USD amounts is based on the noon buying rate of USD1.00=RMB6.3530 on June 29, 2012 in New York for cable transfers of RMB as set forth in the H.10 weekly statistical release of the Federal Reserve Board.

2. Each ADS represents two common shares.

 

51job, Inc.

Consolidated Balance Sheets

 


As of



(In thousands, except share and per share data)

December 31,

2011

(unaudited)

June 30,

2012

(unaudited)

June 30,

2012

(unaudited)


RMB

RMB

USD (Note 1)





ASSETS








Current assets:




      Cash

783,699

853,560

134,356

      Restricted cash

4,263

4,485

706

      Short-term investments

1,270,343

1,426,846

224,594

      Accounts receivable (net of allowance of RMB2,022
           and RMB2,386 as of December 31, 2011 and June
           30, 2012, respectively)

 

 

43,708

 

 

37,108

 

 

5,841

      Prepayments and other current assets

199,836

349,418

55,001

      Deferred tax assets, current

11,042

5,026

791





Total current assets

2,312,891

2,676,443

421,289





Property and equipment, net

192,120

191,055

30,073

Intangible assets, net

4,290

3,602

567

Other long-term assets

48,649

58,621

9,227

Deferred tax assets, non-current

86

8

1





Total non-current assets

245,145

253,286

39,868





Total assets

2,558,036

2,929,729

461,157





LIABILITIES








Current liabilities:




      Accounts payable

20,326

25,765

4,056

      Salary and employee related accrual

44,287

33,981

5,349

      Taxes payable

54,623

44,731

7,041

      Advance from customers

290,460

343,489

54,067

      Other payables and accruals

40,793

84,931

13,369





Total current liabilities

450,489

532,897

83,882





Deferred tax liabilities, non-current

1,972

1,807

284





Total liabilities

452,461

534,704

84,166





Shareholders' equity:




      Common shares (US$0.0001 par value; 500,000,000
           shares authorized, 56,981,341 and 57,602,281
           shares issued and outstanding as of December 31,
           2011 and June 30, 2012, respectively)

 

 

 

47

 

 

 

47

 

 

 

7

      Additional paid-in capital

1,061,819

1,116,169

175,692

      Statutory reserves

7,332

7,332

1,154

      Other comprehensive income

1,638

1,617

254

      Retained earnings

1,034,739

1,269,860

199,884





Total shareholders' equity

2,105,575

2,395,025

376,991





Total liabilities and shareholders' equity

2,558,036

2,929,729

461,157

__________

 

Note 1: The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of US$1.00 to RMB6.3530 on June 29, 2012 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.

 


SOURCE 51job, Inc.



RELATED LINKS
http://www.51job.com

Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn
 

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

 
 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

 
 

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

 
Area to test

Online Member Center

Not a Member?
Click Here to Join
Login
Search News Releases
Advanced Search
Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release