CHINAEDU CORPORATION (ADR) 
By ChinaEdu Reports First Quarter 2013 Results
N et Revenue /ncreases 4.9 Percent Year-Over-Year to $19.2 Million
N et lncome Attributable to ChinaEdu per Diluted ADS Reaches US14.4 Cents
BE IJING. June 19. 2013 /PRN ewsw1re/ - ChmaEdu Corporat1on (NASDAQ CEDU) ("ChmaEdu" or the "Com pany" ). a leadmg onlme educat1onal serv1ces prov1der 1n Ch1na. today announced 1ts unaud1led f1nanc1al results for the first quarter ended March 31. 2013 [1]
First Quarter2013 Highlights
Total nelrevenue forthe f1rst quarter of 2013 was $19 2 m1ll1on. a 4 9 percent mcrease from $18 3 m1ll1on 1n the correspondmg peno d
1n 2012 Total nelrevenue was w1lhm the gu1dance range forthe quarter
Nelrevenue from onlme degree programs was 2 m1ll1on. an mcrease of2 6 percent from $14 8 m1ll1on 1n the correspond1ng penod of 2012
Nelm come attnbutable lo ChmaEdu was $1 9 m1ll1on. an m crea se of 11 6 percent from $1 7 m1ll1on 1n the correspondmg peno d of
2012
AdJusted nelm come attnbutable lo ChmaEdu[2] was $2 4 m1ll1on. an 1ncrease of 10 6 percent from $2 2 m1ll1on 1n the correspondmg penod of 2012
Nelm come attnbutable lo ChmaEdu perd1luted ADS[3] was $0 144. an mcrease of43 6 percent from $0 100 1n the correspondmg
penod of 2012
AdJusted nelm come attnbutable lo ChmaEdu per d1luted ADS[4] was $0 186. an mcrease of 43 2 percent from $0 130 1n the correspondmg peno d of 2012
The number of revenue students[5] enrolled 1n onlme degree programs dunng the Fai l 2012 semestermcreased by 51 percent year
over-yearto approx1mately 207.000 students
[1] The report1ng currency of the RM B. but for the conven1ence of the reader. the amounts for the !hree months ended on Mareh 31. 2013 are presented 1n U S dollars stated. ali translat1onsfrom RMB to U S dollars 1iere made atthe rate of RMB6 2108 to $1 00. the noon
rate 1n effect on March 31. 2013 1n the H 10 statlsllcal release ofthe Federai Reserve Board The Company makes no representat1on thatthe RMB
dollar amounts referred could be converted 1nto U S dollars or RMB. asthe case may be. at any part1cularrate ora!ali For analyt1cal presentat1on. ali percentages are calculated us1ng the numbers presente d 1n the f1nanc1al statements conta1ned 1n th1s earn1ngs release An explanat1on of the Company's non-GAAP f1nanc1al measures 1s 1ncluded 1n the sect1on ent1tled "Non-GAAP F1nane al Measures" below. an d the relate d reconclllallons to GAAP f1nanc1al measures are presented 1n the accompany1ng f1nanc1al statements
[2] "Adjusted nel1ncome attnbutable to Ch1naEdu" 1s a non-GMP measure def1ned as nel1ncome attnbutable to Ch1naEdu exclud1ng share-based compensat1on
nelof non-controll1ng 1nterests' port1on. amort1zat1on of 1ntang1ble assets and land use nghts. and 1ntang1ble assets 1mpa1rment
[3] "ADS" 1s Amencan Depos1tary Share Eaeh ADS represents !hree ord1nary shares
[4] "Adjusted nel1ncome attnbutable to Ch1naEdu per d1luted ADS" 1s a non-GMP measure wh1ch 1s computed us1ng adJusted nel1ncome attnbutable to
Ch1naEdu over the number of ADSs used 1n net 1ncome attnbutable to Ch1naEdu per d1luted ADS calculat1on
[5] "Revenue students" refers t o students of un1vers1ty onl1ne degree programs who h ave pa1d tu111ons The numbers for the !h ree months ended M arch 31 .
2013 and 2012 are revenue students 1n Fall 2012 and Fall 2011. respect1vely
Jul1a Huang. execut1ve challlllan of ChmaEdu commented. "We are pleased w1th the start of2013 Dunng the year. we w1ll rema m ded1cated lo technolog1cal mnovat1on. contmually mcreasmg ways 1n wh1ch em ergmg technology ca n be appl1ed lo our teachmg and leamng m ethods We w1ll contmue lo focus 1nvestm ent o n the areas of our busmess thaiprov1de steady returns an d demonstrate cons1stent cosi control w1th ever-1mprov1ng eff1c1ency 1n spendmg'
Financial Results for the First Quarter Ended Mare h 31, 2013
N et Revenue
Total nelrevenue forthe f1rst quarter of2013 was $19 2 m1ll1on. a 4 9 percent mcrease from $18 3 m1ll1on 1n the coiTespondmg penod 1n
2012
Nelrevenue from onlme degree programs forthe fwst quarter of2013 was $15 2 m1ll1on. a 2 6 percent mcrease over $14 8 m1ll1on 1n the coiTespondmg penod 1n 2012 The mcrease 1n nelrevenue from onlme degree programs was pnmanly re l ate d lo organ1c growth 1n revenue students enrolled 1n onlme degree programs. and contmued expans1on and opllmlzallon ofthe Company's learn1ng centers network Enrollment for the 2012 Fai l semester onl1ne degree programs was approx1mately 207.000 revenue students. a 5 1 percent mcrease from approx1mately 197.000 revenue students enrolled 1n the Fai l semester 1n 2011
By the end ofthe f1rst quarter of 2013. ChmaEdu's learnmg centers network was prov1d1ng recru1t1ng serv1ces for 23 un1vers1l1es w1th 122 operat1onalleamng centers. of wh1ch 54 w ere propnetary centers[6] an d 68 were contracted centers[7] Th1s compares lo 105 operat1onal leammg centers as of March 31. 2012. ofwh1ch 55 were propnetary an d 50 w ere contracted centers
Nelrevenue from non-degree programs. mcludmg onlme tutonng programs. pnvate pnmary and secondary schools and mtemat1onal curnculum programs 1n the f1rst quarter of2013 was $4 O m1ll1on. a 14 3 percent m crea se from $3 5 m1ll1on 1n the fwst quarter of2012 Of that. approx1mately $0 3 m1ll1on was attnbutable lo mcreased enrollment an d mcreased tu111on al our pnvate school1n the c1ty of Anqmg
[6] Propnetary centers referto self-oVWled learn1ng centers operated e1ther under the Company's O Wl brand n ame or the bra nd na me of a un1vers1ty pursuant to a l1cens1ng arrangement w1th that un1vers1ty
[7] Contracted centers referto agreement wth th1rd party leam1ng centers pursuant to wh1ch the apply1ng for approvai from
prov1nC1al level educat1on authont1es as well as secunng add111onal un1vers1ty onl1ne degree programs tu111on earned bythese th1rd party learn1ng centers
Cost of Revenue
Total cosi of revenue for the first quarter of 2013 was $7 5 m1ll1on. an 1ncrease of 2 3 percent. from $7 3 m1ll1on 1n the correspond1ng penod of 2012
Cosi ofrevenue for onlme degree programs 1n the first quarterof2013 was $52 m1ll1on. an mcrease of 6 1 percent compared lo $4 9 m1ll1on
1n the correspondmg peno d of 2012 The 1ncrease 1n cosi of revenue was pnmanly re l ate d lo staff costs 1ncreas1ng by $0 1 m1ll1on an d serv1ce stat1on fees mcreasmg by $0 2 m1ll1on
Cosi of revenue for non-degree programs 1n the f1rst quarter of 2013 was $2 3 m1ll1on. a de crea se of 54 percent from $2 4 m1ll1on 1n the f1rst quarter of 2012 The decrease 1n cosiof revenue for non-degree programs was pnmanly re l ate d lo the decrease of deprec1at1on and amort1zat1on costs assoc1ated w1th our lnlernal1onal curnculum programs
Gross Profit and Gross Mara in
Gross prof1lforthe f1rst quarterof 2013 was $11 7 m1ll1on. compared lo $11 O m1ll1on 1n the coiTespondmg penod of 2012 Gross marg1n mcreased sl1ghtly lo 61 O percent. compared lo 60 1 percent for the correspondmg penod 1n 2012
Gross marg1n for onlme degree programs was 65 9 percent. a sl1ght decrease from 67 O percent 1n the f1rst quarter of 2012 The sl1ght decrease was pnmanly due lo an overall 1ncrease 1n the percentage of total nelrevenue contnbuted by the Company's leamng centers network The leamng centers network's sal es an d serv1ce base d mode l results 1n a sl1ghtly h1gher cosi of sales. whereas the JOinlventure m odel 1s more operat1onally dnven In generai. more revenue generated from our learn1ng centers network results 1n lower gross m arg1n for
our overall onl1ne degree programs
Gross marg1n for onlme tutonng programs mcreased lo 64 3 percent from 54 7 percent 1n the f1rst quarter of2012, mamly due lo mcreased nelrevenue as well as decreased le a se and serv1ce costs
Gross marg1n for pnvate schools 1n the fwst quarter of 2013 mcreased lo 32 7 percent, compared lo 27 6 percent 1n the coiTespondmg penod 1n 2012 The mcrease of gross marg1n was pnmanly due lo mcreased nelrevenue alour pnvate school 1n Anqmg
Operating Expenses
Total operatmg expenses w ere $7 5 m1ll1on 1n the f1rst quarter of2013, an mcrease of 1 5 percent, from $7 4 m1ll1on 1n the correspondmg peno d 1n 2012 As a percentage of nelrevenue, total operatmg expenses decreased lo 39 1 percent, compared lo 40 4 percent 1n the correspondmg peno d 1n 2012 The mcrease 1n total operatmg expense was the result ofthe followmg
Generai and admlnlslrallve expenses forthe f1rst quarterof2013 w ere $4 1 m1ll1on, a de crea se of 1 3 percent from $4 2 m1ll1on 1n the correspond1ng penod 1n 2012 As a percentage of nelrevenue, generai an d admlnlslrallve expenses decreased lo 21 3 percent from
22 7 percent 1nthe same penod 1n 2012 The decrease 1n generai and admlnlslrallve expenses was pnmanlythe result ofa one-t1me emiy lease termmat1on fee 1n the f1rst quarter of 2012 that was related lo a leased property used by our mternat1onal cumculum programs
Sellmg an d marketmg expenses were $1 6 m1ll1on 1n the f1rst quarter of2013, a decrease of 2 4 percent compared lo $1 7 m1ll1on 1n
the coiTespondmg penod 1n 2012 As a percentage of nelrevenue, sellmg and marketmg expenses decreased lo 8 5 percent from
9 2 percent 1n the sa me peno d 1n 2012
Research an d development expenses for the first quarter of 2013 w ere $1 8 m1ll1on, an mcrease of 13 O percent compared lo $1 6 m1ll1on 1n the coiTespondmg penod 1n 2012 As a percentage of nelrevenue, the research an d development expense was 9 2 percent
1n the f1rst quarter of2013, mcreasmg from 8 6 percent 1n the same penod of 2012 The 1ncrease 1n research an d development expenses relat1ve lo nelrevenue was pnmanly due lo mcreased staff costs assoc1ated w1th the company's mvestment 1n technology upgrades
lncome from Operations
In come from operat1ons 1n the f1rst quarterof 2013 was $4 2 m1ll1on, an mcrease of 17 1 percent compare d lo $3 6 m1ll1on 1n the correspondmg peno d of 2012 Operat1ng marg1n mcreased lo 21 9 percent 1n the f1rst quarter of2013, compared lo 19 6 percent 1n the coiTespondmg penod of 2012
AdJusted mcome from operat1ons, a non-GAAP measure defmed as mcome from operat1ons excludmg share-based compensat1on, amort1zat1on ofmtang1ble assets, land use nghts and mtang1ble assets 1mpa1rment, was $4 8 m1ll1on 1nthe first quarterof2013, an mcrease of 15 1 percent compare d lo $4 1 m1ll1on 1n the correspondmg peno d of 2012
AdJusted operatmg margm, a non-GAAP measure defmed as the rat1o of adJusted m come from operat1ons (non-GAAP) over nelrevenue, for the f1rst quarter of 2013 mcreased lo 24 8 percent, compared lo 22 6 percent for the correspond1ng penod of 2012
lnterest expense
Intere si expense forthe first quarter of 2013 was $0 3 m1ll1on, an d 1s pnmanly re l ate d lo ourloans w1th The Bank of East As1a, L1m1ted
lncome Tax Expense
In the f1rst quarterof 2013, 1ncome tax expense was $1 O m1ll1on an d the effect1ve 1ncome tax rate was 21 2 percent
N et lncome Attributable to ChinaEdu
Nelmcome attnbutable lo ChmaEdu, wh1ch 1s nelmcome, excludmg nelm come attnbutable lo non-controllmg mterests, was $1 9 m1ll1on
1n the first quarterof2013, representmg an mcrease of 11 6 percent from $1 7 m1ll1on 1n the correspondmg penod of 2012 The mcrease was pnmanly due lo an m crea se 1n gross prof1la cross onlme tutonng programs an d pnvate pnmary an d secondary schools, as well as effect1ve expense contro l
Nel1ncome attnbutable lo ChmaEdu per bas1c an d d1luted ADS was $0 156 an d $0 144, respect1vely, forthe f1rst quarterof 2013, compared lo $0 106 an d $0 100, respect1vely, forthe coiTespondmg peno d 1n 2012
AdJusted nelmcome attnbutable lo ChmaEdu (non-GAAP) was $2 4 m1ll1on 1n the f1rst quarter of 2013, compare d lo $2 2 m1ll1on 1n the correspondmg peno d of 2012 AdJusted nelmargm, a non-GAAP measure defmed as the rat1o of adJusted nel1ncome attnbutable lo Ch1naEdu (non-GAAP) over nelrevenue, was 12 5 percent 1n the f1rst quarter of 2013, compared lo 11 9 percent 1n the correspond1ng penod of2012
AdJusted nelm come attnbutable lo ChmaEdu perbas1c and d1luted ADS (non-GAAP) was $0 203 an d $0 186 respect1vely, forthe f1rst quarterof2013, comparedto $0138 and $0130, respect1vely, forthe correspondmg penod of2012
Deferred Revenue
As of March 31,2013, deferred revenue was $10 6 m1ll1on, cons1st1ng of current deferred revenue 1n the amount of $9 1 m1ll1on an d non
cuiTent deferred revenue 1n the amount of$1 5 m1ll1on
In generai, Fai l semesterlulllon foronlme degree programs 1s rece1ved dunng the fourth quarterbut 1s recogn1zed both 1n the fourth quarter of the current year an d the f1rst quarter of the followmg year
Pnvate school revenue 1s rece1ved 1n September, but amort1zed over 6 or 12 months wh1le onlme tutonng program revenue ca n be rece1ved alprogram enrollment an d 1s mostly amort1zed w1lhm 12 months
Gas h and Gas h Eauivalents and Term Deposits
As of March 31, 2013, the Company reported cash an d cash equ1valents an d term depos1ts of $53 4 m1ll1on, wh1ch pnmanly cons1sted of cash an d cash equ1valents, an d term depos1ts w1th ongmal matuntyterms of greaterthan !hree months but less !han o ne year
Amounts Due from Related Parties
Amounts due from related part1es, wh1ch represents cash owed lo the Company by collaborative all1ance partners, were $47 7 m1ll1on as of
March 31, 2013 compared lo $48 7 m1ll1on as of December31, 2012
Share repurchase
O n December 31, 2012, the board of d1rectors of ChmaEdu a p prove d a pian lo repurchase up lo US$40 O m1ll1on worth of outstandmg Ch1naEdu ADSs In the f1rst quarter of 2013, the Company repurchased an of 19,724,739 ordmary shares equ1valent fora total cash cons1derat1on an d cancellat1on fee of RMB231 4 m1ll1on (equ1valent lo 3 m1ll1on) The repurchased shares w ere ali cancelled Thus nel1ncom e attnbutable lo ChmaEdu per d1luted ADS mcreased accordmgly
Second Quarter 2013 Guidance
Ch1naEdu managementexpects total nelrevenue 1n the second quarterof2013 lo range from RMB124 m1ll1on lo RMB130 m1ll1on or$20 O m1ll1on lo $20 9 m1ll1on, representmg an 8 percentto 13 percent mcrease from RMB115 m1ll1on or$18 1 m1ll1on comparedto the coiTespondmg penod 1n 2012
Conference Cali
ChmaEdu's management will hold an earnmgs conference cali at 8 00 a m U S Eastern Time on June 20. 2013 (8 00 p m . Bei)tng/Hong
Kong Time on ne 20. 2013)
Dtal-tn detatls for the earn1 ngs conference ca li are as follows
l ntemational Hong Koog· United States
Tollfree China, Mcbile
Toli-free China
Toli-free United States
Conference 1 0·+65 67239381
+852 24750994
+1 (718) 354-1231
4006208038
8008190121
+1 (866) 519-4004
83731444
Conference PasS'INOrd ChinaEduA ltv e and arch1ved webcast ofthe conference ca li wili be avatlable on the tnvestor relattons pag e of Ch1 naEdu's webstte at http / t l r ch tna edu .ne tand a replay of the conference cali may be accessed by phone unttl June 28, 2013
Dtal-tn numbers for the replay are as follows: Tali Free Unrted States· +1 (855) 452-5696
l ntemat10nal +61 2 8199 0299
Confe tence ID: 83731 444
Conference PasSINOrd ChinaEdu
Non-GAAP Financial Measures
T o supplement the unaudited condensed consolidated fmanct a l mformation presented 1n accordance w1 th Genera ly Accepted Accountmg Pnnaples tn the Untted States of Amenca ("GAAP"). the Company uses non-GAAP measures of tncome from operattons and net tncome attributable to ChinaEdu. whtch are adjus ted from results based on GAAP to exclude certain non-cash item s of share-based compensation. amortizatton of mtangtble asset s and land use nghts a nd mtang1 ble assets tmpatrment Adjusted operating margin deftned as the ratto of ad)us ted operattng tncome from operatt on over net revenue. Ad)us ted net tneome attnbutable to Ch>naEdu per bas te and dtluted ADS are a non-GAAP measure whtch are computed ustng ad)usted net mcome attnbutable to Ch>naEdu over the number o f ADSs used 1n net mcome attributable to ChtnaEdu per baste and diluted ADS calculation
T hese non-GAAP ftnanctal measures are provtded to enhance the tnv estors' overall unders tand1 ng ofthe Company's current and past ftnanctal performance tn on-gotng core operattons as well as prospects for the future . These measures should be constdered tn addttton to results prepared and presented tn accordance with GAAP. but should not be constdered a substttute for or supenor to GAAP results
Ma nagement considers the non-GAAP inform atton as tmportant measures interna lly and therefore deem s it important to provtde aliof thts
informatwn to investors.About ChinaEdu
Ch>naEdu Corporatton ts a n educatt onalservtces prov t der tn China , tncorporated as an exempted ltmtted ltabtltty company tn the Cayman lslands . Es tabltshed tn 1999, the Company's pnmary bustness ts to prov tde comprehenstve serv tces to the onltne degree programs o f lead1ng Chinese umversittes These servtces tnclude academic program development. technology servtces.enrollment marl
The Company belteves it is the largest servtce provider to online degree progra ms tn Chma 1n terms of the number of higher educatton tnstttuttons that are served and the number of s tudent enrollments supported. The Company currently prov tdes technt cal, recrutttng and other servtces to 27 untverstttes wtth onltne degree programs and prov tdes servtces and support to 11 addlttonal untverstttes that are awaitmg regulatory approvai to launch thetr online program s Ofthese 38 untverstties. 13 ofthem have entered into col a borativ e a lliances wtth ChinaEdu. rangmg from 15 to 50 years in length Etght of them hav e entered mto technology service agreements. rangmg from 3 to 20 years tn length. ChtnaEdu also pertorms recrutt>ng serv tces through tts natt onw tde learn1ng center networl< for 23 untversttt es, tndud>ng 6 wtth whtch the Company has etther established colla borattv e allt ances or entered mto technology service agreements
Forward -Looking Statements
Tht s press release conta1 ns "forward-looking statements" within the meaning of the Private Secunties Lttigation R eform Aet of 1995. includtng certain pians. expect ations. goals. and projections. whtch are subwct to numerous assumptions.risks. and uncerta1 nties Forward-looktng statements tnv olve known and unkno wn nsks, uncerta1ntt es and cont>ngenaes, many ofwhtch are beyond our contro!
whtch may cause actual results.lev els of actt v tty, performance or achtev ements to dt ffer matenally !rom any future results.levels o f actt v tty, performance or achtevements expressed or tmplted by such forward-looking statements The Company's actual result s could dtf fer
matena l y from those contained in the forward-lookmg s tatements due to a number of factors. mcluding those descnbed under the heading "Rtsk Factors" tn the Company's Annua l R eport on Form 20-F forthe year ended December 3 1, 2012 , and tn documents subsequently filed by the Company from ttme to ttme w tth the Secunttes and Exchange Commt sston. Unless requtred by law , the Company undertakes no obligation to (a nd expressly disdatm any sueh obligatton to) update or revtse any forward-looking statement s. whether as a result o f new information. future events or otherwise
For investor and media inquiries , please contact:Helen Plummer
Sentor lnv es tor Relatt ons Coord>nator
ChtnaEdu Corporatton
Phone + 1 908-442-9395
E - matl h e l e n@ ch tna e du net
Stmon Met
Chief Financtal O fficer ChtnaEdu Corporatton Phone +86 (10) 84187301
E - matl s i mo n@ c hma e du n e t
Chin aEdu Corporation
Unaudited Condensed Consolid ated Baianc e Sheets
(in thousands, unaudited}
OecerrtJer 31
2012
March 31
2013
March 31 ,
2013
R.IB lJS$
Current assets:
Ca sh and ca sh equllalents 385,922 207.448 33.401
Term deposils
Short-term inveslments
Accounts receivable, n et
Prepaid expenses an d other current assets
Amounts due lrom related parties-current
Delerred tax assets-current
Total current assets
Term deposils -non current
Property and equipment, nel
Amounts due lrom related party-non-current
Land use nghts
Deposils paid lor acquisilion olproperty and equipment
Delerred tax assets-non-current
Long-term investments
Rental deposils
Acqu red inlangible assets, nel
Goodwll
Total assets
Liabilities and equitv
Current liabilities:
Short term lo an (including short term lo an olthe consolidate d VIE Wilhout recourse t o the
Group olnil and n il as olDecember 31, 2012 and March 31, 2013, respectively)
Accounts payable accounts payable olthe consolidated VI E wthout recourse to the
Group ol2,007 as olDecember 31, 2012 and March 31, 2013, respectively)
Delerred revenues-current (including delerred revenues olthe consolidated VIE wthout recourse to the Group ol23,518 and 25,376 as olDecember 31, 2012 and March 31, respectively)
Accrued expenses and other current liabililies (including accrued expenses other current
liabililies olthe consolidated VIE Wilhout recourse to the Group ol22,113 an d 25,349 as olDecember 31 , 2012 and March 31, 2013, respectively)
Amounts due to related parties-current (including amounts due to relate d parties olthe consolidated
VIEwithout recourse to the Group ol1,926 and 1 ,960 as olDecember 31, 2012 and March 31,
2013, ce pecPcely)
income taxes payable ol the consolidate d VIE Wilhout recourse to the as olDecember 31, 2012 an d March 31, 2013, respectively)
other taxes payable olthe consolidated VIE Wilhout recourse to the as olDecember 31, 2012 and March 31, 2013, respectively)
Total current liabilities
Long term loan(including long term lo an olthe consolidated VIE Wilhout recourse to the
Group olnil and n il as olDecember 31, 2012 and March 31, 2013, respectively)
Delerred revenues-non-current (including delerred revenues olthe consolidated VIE wthout recourse to the Group ol29 and 29 as olDecember 31, 2012 and March 31, 2013, respectively)
Delerred tax liabililies-non-current (including delerred tax liabililies olthe consolidated VIE wthout recourse to the Group ol978 and 968 as olDecember31, 2012 and March 31, 2013, respectively)
Unrecognized tax benelil(including unrecognized tax benelilolthe consolidated VIE Wilhout
recourse to the Group ol3,555 and 3,851 as olDecember 31, 2012 and March 31, 2013, respectively) Totalliabilities
ChinaEdu shareholders' equity
Noncontrolling inlerests Total equity Totalliabilities and equitv
ChinaEdu Corporation
Unaudited Condensed Consolidated Statements of Operations
92,028 124,289 20,011
23,575 18,085 2,912
34,917 16,209 2,610
23,455 19,445 3,132
260,184 254,088 40,911
9,571 3,213 517
829,652 642,777 103,494
95,850 15,433
238,563 234,143 37,699
41,979 41,979 6,759
26,049 25,897 4,170
3,873 3,873 624
2,085 2,368 381
801 758 122
1,497 1,366 220
54,499 53,700 8,646
68,120 10,968
2,401 5,680 815
134,175 56,220 9,052
113,558 114,055 18,364
35,507 28,577 4,601
49,294 32,421 5,220
27,294 18,663 3,005
362,229 323,736 52,125
156,433 25,187
10,654 9,785 1,575
13,473 13,418 2,160
650,191 432,660 69,663
(in thousands,except for percentage, share, an d per share information)
Three Months End ed
March31,2012 March31,2013 March31,2013
FMB FMB US$
Gross Revenue 119,632 122,173 19,670
BusinessTax 5,705 2,714 437
N et Revenue
Online degree programs 91,927 94,315 15,186
Online tutonng programs 6,009 6,731 1,083
Pnvate pnmary an d secondary schools 13,536 15,855 2,553 lnternational cumculum programs 2,455 2,558 411
Total nelrevenue 113,927 119,459 19,233
Cosi olrevenue
Online degree programs 30,319 32,162 5,178
Online tutonng programs 2,721 2,400 386
Pnvate pnmary an d secondary schools 9,806 10,664 1,717 lnternational cumculum programs 2,663 1,309 211
Total cosi olrevenue 45,509 46,535 7,492
Gross proli!
Online degree programs 61,608 62,153 10,008
Online tutonng programs 3,288 4,331 687
Pnvate pnmary an d secondary schools 3,730 5,191 836 lnternational cumculum programs 208 1,249 200 Total gross proli! 68,418 72,924 11,741
Online degree programs | 67.0% | 65.9"k | 65.9% |
Online tutonng programs | 54.7% | 64.3% | 64.3% |
Pnvate pnmary an d secondary schools lnternat1onal cumculum programs
Gross marg1n
27.6% (8.5%)
60.1%
Operat1ng expenses Generai and admn1stratJve Sell1ng and market1ng Research and development Total operat1ng expenses lncome from operat1ons Operat1ng marg1n
lnterest 1ncome lnterest expense lnvestment1ncome Other 1ncome
lncome before 1ncome tax and equ1ty method 1nvestments lncome tax expense
N et 1ncome before 1ncome from equ1ty method 1nvestments Income from equ1ty method 1nvestments. net of taxes Nel1ncome
N et 1ncome attnbutable to the noncontroll1ng 1nterests
Nel1ncome attnbutable to Ch1naEdu
NelrTBrg1n
N et 1ncome attnbutable to Ch1naEdu per ADS Bas1c
D1luted
We1ghted average aggregate number of ADSs outstand1ng
Bas1c
D1luted
25.810 25.476 4.102
10.463 10.211 1.644
9.777 11.046 1.779
46.050 46.733 7.525
22.368 26.191 4.216
19.6% 21.9% 21.9%
2.988 2.906 468
(1.767) (285)
674 368 58
247 423 68
26.277 28.121 4.526
(5.483) (5.953) (958)
20.794 22.168 3.568 (43) (7)
20.794 22.125 3.561 (1 0.469) (10.606) (1.708)
10.325 11.519 1.853
9.1% 9.6% 9.6%
o 66 o 87 o 156
o 62 o 88 o 144
15.746.005 11.847.105 11.847.105
16.761.137 12.892.555 12.892.555
'Gross revenue are deta1led as follows
Onl1ne degree programs
Onl1ne tutonng programs
Pnvate pnmary an d secondary schools lnternat1onal cumculum programs
97.318
6.157
13.558
2.599
96.795
6.872
15.882
2.624
15.585
1.106
2.557
422
ChinaEdu Corporation
Unaudited Condensed Consolidated Statements of Cash Flow
(in thousands. unaudited)
March31.2012
RMB
Three Months End ed
March31.2013
RMB
March31.2013
US$
Operating activities:
Net1ncome 20.794 22.125 3.561
Adjustments to recone le net 1ncome to net cash prov1ded by operat1ng acliVIlleS
Share-based compensat1on 2.219 2.463 387
Deprec1at1on and amort1zat1on of property and equ1pment 6.304 6.373 1.026
Amort1zat1on of land use nghts 152 152 24
Amort1zat1on of acqu red 1ntang1ble assets 885 788 128 lnvestment1ncome (69) (368) (59) Amort1zat1on of debt discount 234 38
Earn1ngs from equ1ty method 1nvestment 43
Prov1s1on for Accounts Rece1vable 340 144 23
Loss from d1sposal of property and equ1pment 812
Changes 1n assets and liab11111es
Accounts rece1vable 8.839 18.564 2.989
Prepa1d expenses and other current assets (2.213) 4.144 668
Amounts due from related part1es 1.838 6.096 883
Rental depos1ts 471 131 21
Accounts payable 2.514 3.279 528
Deferred revenues (78.991) (78.821) (12.691) Accrued expenses and other current liab11111es 5.974 368 58
Amounts due to related part1es 9.952 (14.453) (2.327)
lncome tax payable (10.602) (16.873) (2.717) Othertaxes payable (4.960) (8.631) (1.390) Deferred 1ncome taxes 2.356 6.020 868
Unrecogn1zed tax benef1t 640 588 85
Net cash used in operating activities (32.645) (47.614) (7.666)
lnvesting activities:
Purchase of property and equ1pment | (803) | (1.961) | (316) |
Matunty/(purchase) of term depos1ts. n et | 24.135 | (128.119) | (20.628) |
Proceeds from the sale of 1nvestments | 10.318 | 5.482 | 883 |
Net cash provided by (used in) investing activities 33.650 (124.598) (20.061)
Financing activities:
Proceeds from exemse of share opt1ons F1nane ng cost related to loans | 345 | (3,751) | (604) |
Proceedsl rom borrowngs of short-term debt | 68,410 | 11,015 | |
Proceeds from borrowngs of long-term debt | 159,750 | 25,721 | |
Repurchase and cancellat1on of ord1nary shares | 231,358 | 37,251 |
Net cash provided by (used in) financing activities 945 {6,949) {1,119)
Effe et of fore1gn exchange rate changes (5) 687 110
CASH ANO CASH EOUIVALENTS, beg1nn1ng of penod 273,746 385,922 62,137
CASH ANO CASH EOUIVALENTS, end of penod 275,691 207,448 33,401
N et 1ncrease (decrease) 1n cash an d cash equ1valents 1,945 (178,474) (28,736)
ChinaEdu Corporation
Unaudited Condensed Consolidated Statem ents of Comprehensive lncom e
fin thousands, unauditedl
N et 1ncome
Other comprehens1ve 1ncome, net of taxes
Fore1gn currencytranslat1on adJustments
Change 1n fa1r value of ava1lable for sale 1nvestments
Comprehensive income
Less comprehens1ve 1ncome attnbutable to noncontrollng 1nterests
Comprehensive incom e attributable to Chinaedu
Three Months Ended
March31,2012 March31,2013 March31,2013
FMB FMB US$
20,794 22,125 3,561
743 121
237 337 54
21,038 22,537 3,628
10,446 11,173 1,799
10,592 11,364 1,829
ChinaEdu Corporation
Unaudited reconciliations from incom e from operations t o adjusted in come from operations (non-GAAP) an d adjusted operating margin (non-GAAP)
(in thousands, unaudited)
N et revenue 113,927 119,459 19,233 lncome from operat1ons 22,368 26,191 4,216
AdJustments
Share-based compensat1on 2,219 2,463 337
Amort1zat1on of 1ntang1ble assets and land use nghts 1,137 351 153
Adjusted incomefrom operations (non-GAAP) 25,724 29,605 4,766
AdJusted operat1ng marg1n (non-GMP) 22 6% 24 8% 24 8%
ChinaEdu Corporation
Unaudited reconciliations from net ine ome attributable to ChinaEdu to adjusted net in come attributable to ChinaEdu (non-GAAP), adjusted net margin (non-GAAP) and adjusted net in come perADS (non-GAAP)
(in thousands, unaudited)
N et revenue 113,927 119,459 19,233
Nel1ncome attnbutable to Ch1naEdu 10,325 11,519 1,853
AdJustments
Share-based compensat1on 2,219 2,463 337
Share-based compensat1on attnbutable to noncontroll1ng 1nterests (177)
Amort1zat1on of 1ntang1ble assets and land use nghts 1,137 351 153
Adjusted net ineo me attributable to ChinaEdu (non-GAAP) 13,504 14,933 2,403
AdJusted nelmarg1n (non-GAAP) 11 9% 125% 12 5%
Adjusted net 1ncome attnbutable to Ch1naEdu per AOS (non-GAAP)
Bas1c | o 86 | 1 26 | o 203 |
01luted | o 81 | 1 16 | o 186 |
We1ghted average aggregate number of AOSs outstand1ng
Bas1c | 15,746,005 | 11,847,105 | 11,847,105 |
01luted | 16,761,137 | 12,892,555 | 12,892,555 |
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