2014

China Bilingual Announces Financial Results for the Third Quarter of Fiscal 2012 Nine-Month year-over-year revenue increases 72.5% to $31.5 million and EBITDA increases to $14.5 million or 46.1% of revenues

TAIYUAN CITY, China, July 16, 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 third quarter ended May 31, 2012.

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

  • Revenues increased 63.4% year-over-year to $10.2 million, compared to $6.2 million for the three months ended May 31, 2012. 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 13,881 students for the current school year, as well as a slight tuition increase.
  • Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") increased 71.5% year-over-year to $5.2 million, compared to $3.1 million for the three months ended May 31, 2011. 
  • 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 $125.5 million at historical book value as of May 31, 2012, an increase of 294.7% from $31.8 million as of December 31, 2010.
  • Stockholders' equity was $48.0 million as of May 31, 2012, an increase of 51.3% from $31.7 million as of December 31, 2010.

Nine Months Fiscal Year 2012 Financial Highlights: (Year-over-Year, Nine-Month Results)

  • Revenues increased 72.5% year-over-year to $31.5 million, compared to $18.3 million for the nine months ended May 31, 2011. The increase was primarily attributable to the acquisition of the Shanxi South School.
  • EBITDA increased 68.8% year-over-year to $14.5 million, compared to $8.6 million for the nine months ended May 31, 2011. 

"China's middle class continues to grow, driving demand for private education," stated Mr. Ren Zhiqing, Chairman and CEO of China Bilingual. "Recent added support for private education from the Ministry of Education of the People's Republic of China will further accelerate this growing demand. Our reputation for academic excellence positions us to greatly benefit from these market dynamics, and with our schools at less than 70% of total capacity, we have the ability to dramatically improve revenue and earnings growth as our enrollments increase."

"Private education is a sunrise industry in China, with overall education and training spending in the country growing at an estimated compound annual growth rate of at least 20 percent from 2008 to 2013." (ChinaDaily.com.cn, January 21, 2011). 

Conference Call and Webcast

Management will host a conference call to discuss these financial results Tuesday, July 17, 2012 at 10:00 a.m. Eastern time (7:00 a.m. Pacific).

To participate in the call, please dial (877) 941-1427, or (480) 629-9664 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. ET on July 17, 2012, until 11:59 p.m. ET on July 31, 2012. The number for the replay is (877) 870-5176, or (858) 384-5517 for international calls; the pin number for the replay is 4553596. 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 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.

Contact:      

At the Company:
Michael Toups, Chief Financial Officer
U.S. Office +1 727-641-1357
miketoups@gmail.com

Investor Relations:
Mike Bowdoin
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 110
info@redchip.com
http://www.RedChip.com

China Bilingual Technology & Education Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets



May 31, 2012

August 31, 2011


ASSETS

      (unaudited)


CURRENT ASSETS:






Cash and cash equivalents


$

9,012,557


$

15,090,521


Inventory



71,574



3,489


Prepayment and other current assets



2,982,030



9,606,682


Total Current Assets



12,066,161



24,700,692










LONG-TERM ASSETS:








Property, plant and equipment, net



80,246,741



81,958,342


Land use rights, net



45,266,573



45,783,579


Deposit paid for long-term assets



-



18,778










Total Long-Term Assets



125,513,314



127,760,699










TOTAL ASSETS


$

137,579,475


$

152,461,391










LIABILITIES AND STOCKHOLDERS' EQUITY
















CURRENT LIABILITIES








Accounts payable


$

99,974


$

48,824


Short-term payable-acquisition



18,721,361



21,177,319


Due to related parties



8,139,302



7,842,522


Other payables



514,545



333,202


Refundable deposits



545,664



795,848


Prepaid school fees



18,782,157



39,498,972


Home purchase down payment



930,366



878,668


Short-term bank loan



15,770,632



15,685,044


Accrued expenses and other current liabilities



934,231



908,268










Total Current Liabilities



64,438,232



87,168,667










Long-term payable-acquisition



25,171,348



22,656,106










TOTAL LIABILITIES


$

89,609,580


$

109,824,773










STOCKHOLDERS' EQUITY:








Common Stock, $0.001par value; 75,000,000 shares authorized; 30,014,528 issued and outstanding as of May 31, 2012 and August 31, 2011



30,015



30,015


Additional paid-in capital



67,421



67,421


Retained earnings



45,211,581



40,100,740


Accumulated other comprehensive income



2,660,878



2,438,442










TOTAL STOCKHOLDERS' EQUITY



47,969,895



42,636,618










TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$

137,579,475


$

152,461,391



The accompanying notes to these consolidated financial statements, as filed with the SEC, 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




May 31, 2012



May 31, 2011






REVENUES


$

10,151,351



$

6,213,940


COST OF REVENUES



5,547,069




2,960,417


GROSS PROFIT



4,606,282




3,253,523


OPERATING EXPENSES









   General and Administrative Expenses



528,073




526,808


TOTAL OPERATING EXPENSES



528,073




526,808


INCOME FROM OPERATIONS



4,078,209




2,726,715


 OTHER INCOME (EXPENSE)









   Interest Income



8,267




6,309


   Interest Expense



(2,083,241)




-


NET INCOME BEFORE INCOME TAXES


$

2,003,235



$

2,733,024


INCOME TAX EXPENSE



-




-


NET INCOME


$

2,003,235



$

2,733,024


  Foreign currency translation, net of tax



(304,705)




478,568


COMPREHENSIVE INCOME 


$

1,698,530



$

3,211,592











Earnings per Common Share:









  Basic


$

0.07



$

0.09


  Diluted


$

0.07



$

0.09











Weighted Average Common Shares Outstanding:









  Basic



30,109,677




30,010,114


  Diluted



30,109,677




30,010,114











The accompanying notes to consolidated financial statements, as filed with the SEC, are an integral part of these statements.



 

China Bilingual Technology & Education Group Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Other Comprehensive Income

(Unaudited) 







For The Nine Months Ended




May 31, 2012



May 31, 2011






REVENUES


$

31,533,148



$

18,284,643


COST OF REVENUES



18,574,019




9,410,816


GROSS PROFIT



12,959,129




8,873,827


OPERATING EXPENSES









   General and Administrative Expenses



1,658,566




1,227,436


TOTAL OPERATING EXPENSES



1,658,566




1,227,436


INCOME FROM OPERATIONS



11,300,563




7,646,391


 OTHER INCOME (EXPENSE)









   Interest Income



39,166




25,703


   Interest Expense



(6,228,888)




-


NET INCOME BEFORE INCOME TAXES


$

5,110,841



$

7,672,094


INCOME TAX EXPENSE



-




-


NET INCOME


$

5,110,841



$

7,672,094


  Foreign currency translation, net of tax



222,436




1,535,189


COMPREHENSIVE INCOME 


$

5,333,277



$

9,207,283











Earnings per Common Share:









  Basic


$

0.17



$

0.26


  Diluted


$

0.17



$

0.26











Weighted Average Common Shares Outstanding:









  Basic



30,079,330




30,004,503


  Diluted



30,079,330




30,004,503











The accompanying notes to these consolidated financial statements, as filed with the SEC, are an integral part of these balance sheets.



 

 

China Bilingual Technology & Education Group Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)







For The Nine Months Ended




May 31, 2012



May 31, 2011









Cash Flows From Operating Activities:







Net income


$

5,110,841



$

7,672,094


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









   Depreciation



2,442,943




835,892


  Amortization



767,122




113,512


   Accretion of interest payable – acquisition



4,572,250




-


   Stock-based compensation



79,861




99,000


   (Increases) Decreases in Assets:









      Inventories



(68,093)




1,825


      Prepayment and other current assets



6,698,595




674,894


   Increases (Decreases) in Liabilities:









      Accounts payable



50,903




(17,636)


      Other payables



179,595




(485,742)


      Refundable deposits



(254,627)




(722,847)


      Prepaid school fees



(20,940,603)




(12,701,222)


      Home purchase down payment



46,922




121,245


      Accrued expenses and other current liabilities



(58,462)




(91,724)


Net Cash Provided By (Used In) Operating Activities



(1,372,753)




(4,500,709)











Cash Flows From Investing Activities:









Deposits - long term assets



-




(7,865,907)


Fixed asset additions



(283,275)




(315,935)


Receipts - related parties receivables



-




3,539,714


Net Cash Provided By (Used In) Investing Activities



(283,275)




(4,642,128)











Cash Flows From Financing Activities:

  Proceeds from related party loan



253,999




-


  Payments made on acquisition - payable



(4,750,346)




-


Net Cash Provided By (Used In) Financing Activities



(4,496,347)




-











Effect of Exchange Rate Changes on Cash



74,411




340,667











Net Increase (Decrease) in Cash and Cash Equivalents



(6,077,964)




(8,809,985)











Cash and Cash Equivalents, Beginning of Period



15,090,521




10,888,988











Cash and Cash Equivalents, End of Period


$

9,012,557



$

2,086,818











Supplemental Disclosures of Cash Flow Information:









   Cash paid for interest


$

1,325,256



$

-


   Cash paid for taxes


$

-



$

-



The accompanying notes to consolidated financial statements, as filed with the SEC, are an integral part of these statements.

 

SOURCE China Bilingual Technology & Education Group Inc.



RELATED LINKS
http://ViaVid.net
http://www.RedChip.com

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.