Tarena International, Inc. Announces Unaudited First Half Fiscal Year 2019 Results
First Half Year 2019 Net Revenues up by 3.3% Year-Over-Year
First Half 2019 Student Enrollment in adult education down by 4.8% Year-Over-Year
First Half 2019 Student Enrollment in K-12 education up by 214.0% Year-Over-Year
BEIJING, May 1, 2020 /PRNewswire/ -- Tarena International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced its unaudited financial results for the six months ended June 30, 2019.
First Half Fiscal Year 2019 Highlights
- Net revenues increased by 3.3% year-over-year to RMB882. 6 million (US$128.6 million), from RMB854.2 million in the same period in 2018.
- Gross profit decreased by 30.4% year-over-year to RMB312.8 million (US$45.6 million), from RMB449.2 million in the same period in 2018.
- Operating loss was RMB646.9 million (US$94.2 million), compared to an operating loss of RMB345.9 million in the same period in 2018.
- Net loss was RMB625.1 million (US$91.1 million), compared to a net loss of RMB338.0 million in the same period in 2018.
- Basic and diluted loss per American Depositary Share ("ADS") was RMB11.36 (US$1.65).
- Cash, cash equivalents, time deposits, including current and non-current, and restricted cash totaled RMB728.7 million (US$106.1 million) as of June 30, 2019, compared to a balance of RMB704.8 million as of December 31, 2018.
- Deferred revenue totaled RMB1,398.4 million (US$203.7 million) as of June 30, 2019, compared to a balance of RMB830.0 million as of December 31, 2018, representing an increase of 68.5%.
- Total student enrollments in adult education in the first half of 2019 decreased by 4.8% year-over-year to approximately 62,900.
- Total number of learning centers in adult education decreased to 142 as of June 30, 2019, from 180 as of December 31, 2018.
- Total student enrollments in K-12 education in the first half of 2019 increased by 214.0% year-over-year to approximately 58,400.
- Total number of learning centers in K-12 education increased to 177 as of June 30, 2019, from 148 as of December 31, 2018.
The Company's Interim Financial Statements are prepared and presented in accordance with U.S. GAAP. However, the Interim Financial Statements have not been audited or reviewed by the Company's independent registered accounting firm.
About Tarena International, Inc.
Tarena is a leading provider of professional education services in China. Through its innovative education platform combining live distance instruction, classroom-based tutoring and online learning modules, Tarena offers professional education courses in IT and non-IT subjects. Tarena also offers K-12 education programs. Its professional education courses provide students with practical skills to prepare them for jobs in industries with significant growth potential and strong hiring demand.
TARENA INTERNATIONAL, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data and per share data) |
||||||||
As of |
||||||||
June 30, |
December 31, |
|||||||
2019 |
2018 |
|||||||
Unaudited |
||||||||
RMB |
RMB |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
569,498 |
530,984 |
||||||
Time deposits |
158,660 |
158,585 |
||||||
Restricted cash |
- |
14,700 |
||||||
Accounts receivable, net of allowance for doubtful accounts |
36,217 |
39,901 |
||||||
Amounts due from a related party |
16,448 |
9,938 |
||||||
Prepaid expenses and other current assets |
201,992 |
171,466 |
||||||
Total current assets |
982,815 |
925,574 |
||||||
Time deposits-non current |
523 |
517 |
||||||
Accounts receivable, net of allowance for doubtful accounts-non current |
19,357 |
12,157 |
||||||
Amounts due from a related party |
6,500 |
6,500 |
||||||
Property and equipment, net |
594,553 |
626,068 |
||||||
Intangible assets, net |
21,157 |
19,046 |
||||||
Goodwill |
52,782 |
52,782 |
||||||
Right-of-use assets |
617,356 |
- |
||||||
Long-term investments |
69,651 |
59,651 |
||||||
Deferred income tax assets |
66,811 |
53,752 |
||||||
Other non-current assets |
114,350 |
122,000 |
||||||
Total assets |
2,545,855 |
1,878,047 |
||||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Short-term bank loan |
- |
13,726 |
||||||
Accounts payable |
48,741 |
18,529 |
||||||
Amounts due to related parties |
- |
872 |
||||||
Income taxes payable |
66,644 |
71,847 |
||||||
Deferred revenue |
1,398,388 |
830,019 |
||||||
Accrued expenses and other current liabilities |
448,004 |
365,428 |
||||||
Operating lease liabilities - current |
301,166 |
- |
||||||
Total current liabilities |
2,262,943 |
1,300,421 |
||||||
Operating lease liabilities – non-current |
296,262 |
- |
||||||
Other non-current liabilities |
5,825 |
5,983 |
||||||
Total liabilities |
2,565,030 |
1,306,404 |
||||||
Commitments and contingencies |
— |
— |
||||||
Shareholders' equity: |
||||||||
Class A ordinary shares |
331 |
331 |
||||||
Class B ordinary shares |
74 |
74 |
||||||
Treasury stock |
(457,169) |
(457,169) |
||||||
Additional paid-in capital |
1,247,392 |
1,222,072 |
||||||
Accumulated other comprehensive income |
58,745 |
50,472 |
||||||
Accumulated deficit |
(867,217) |
(243,162) |
||||||
Total equity attributable to Tarena International, Inc. |
(17,844) |
572,618 |
||||||
Non-controlling interest |
(1,331) |
(975) |
||||||
Total liabilities and equity |
2,545,855 |
1,878,047 |
||||||
TARENA INTERNATIONAL, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands, except share data and per share data) |
||||||||
For the Six Months Ended |
||||||||
2019 |
2018 |
|||||||
Unaudited |
Unaudited |
|||||||
RMB |
RMB |
|||||||
Net revenues |
882,613 |
854,182 |
||||||
Cost of revenues |
(569,851) |
(404,978) |
||||||
Gross profit |
312,762 |
449,204 |
||||||
Selling and marketing expenses |
(576,038) |
(467,489) |
||||||
General and administrative expenses |
(294,670) |
(244,594) |
||||||
Research and development expenses |
(88,952) |
(83,003) |
||||||
Operating loss |
(646,898) |
(345,882) |
||||||
Interest income |
9,427 |
14,949 |
||||||
Other (loss) income |
(483) |
707 |
||||||
Foreign currency exchange income |
1,106 |
1,032 |
||||||
Loss before income taxes |
(636,848) |
(329,194) |
||||||
Income tax benefit (expense) |
11,737 |
(8,835) |
||||||
Net loss |
(625,111) |
(338,029) |
||||||
Less: Net loss attributable to non-controlling interests |
(1,056) |
(782) |
||||||
Net loss attributable to Class A and Class B ordinary shareholders |
(624,055) |
(337,247) |
||||||
Net loss per Class A and Class B ordinary share: |
||||||||
Basic |
(11.36) |
(5.99) |
||||||
Diluted |
(11.36) |
(5.99) |
||||||
Weighted average number of Class A and Class B ordinary shares outstanding: |
||||||||
Basic |
54,929,910 |
56,277,694 |
||||||
Diluted |
54,929,910 |
56,277,694 |
||||||
Net loss |
(625,111) |
(338,029) |
||||||
Other comprehensive income |
||||||||
Foreign currency translation adjustment, net of nil income taxes |
8,273 |
14,415 |
||||||
Comprehensive loss |
(616,838) |
(323,614) |
||||||
SOURCE Tarena International, Inc.
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