BEIJING, May 20, 2021 /PRNewswire/ -- RISE Education
Cayman Ltd ("RISE" or the "Company") (NASDAQ: REDU), a leading
junior English Language Training ("ELT") provider in China, today announced its unaudited financial
results for the first quarter ended March
31, 2021.
Impact from COVID-19
The outbreak of COVID-19 had a significant and material
adverse impact on the Company's operations through the full year of
2020. In accordance with government initiatives to contain the
epidemic, RISE's self-owned learning centers were temporarily
closed for a majority of the time during the period starting
January 19, 2020 until September 2020. With the easing of containment
measures placed to keep the epidemic under control, almost all the
Company's learning centers resumed normal operation in the fourth
quarter of 2020. However, the resurgence of COVID-19 in certain
cities in January 2021 resulted in
another round of closure of our learning centers in Beijing and Shijiazhuang. As the resurgence of COVID-19
has been largely contained, our learning centers in Shijiazhuang have resumed offline operations,
while most of our learning centers in Beijing remain closed due to recently
introduced regulatory restrictions. The Company's proactive
measures stabilized its business by controlling costs and adjusted
capital expenditure and liquidity capabilities to preserve
cash. At the same time, the Company continued to upgrade and
transform Rise+, a proprietary online learning management system,
into a nationwide open and interactive technology platform for
learning, teaching and training. The implementation of the
Online-Merge-Offline ("OMO") strategy has been proven to be highly
effective to not only help the Company navigate through the tough
market environment in the midst of the epidemic, but also support
the Company to drive long-term sustainable growth through the
flexibility of its operations. Although there was sporadic
resurgence of COVID-19 in certain parts of the country in the first
quarter of 2021, the Company was able to respond quickly and
leveraged its mature OMO model to stabilize the business in the
affected areas. While the overall impact of COVID-19 is subsiding,
the Company is well positioned to mitigate risks and manage
operational flexibility by leveraging its recent experience.
First Quarter of 2021 Financial and Operational
Summary
- Total revenues were RMB261.5
million (US$39.9 million) in
the first quarter of 2021, compared with RMB109.0 million in the first quarter of
2020.
- Net loss attributable to RISE was RMB24.6 million (US$3.9
million) in the first quarter of 2021, compared with net
loss of RMB103.8 million in the first
quarter of 2020.
- Non-GAAP net loss attributable to RISE[1] was
RMB19.9 million (US$3.0 million) in the first quarter of
2021.
- Adjusted EBITDA[2] loss was RMB5.1 million (US$0.8
million) in the first quarter of 2021, compared with
adjusted EBITDA loss of RMB108.0
million in the first quarter of 2020.
- Students in class[3] for Rise regular courses
(including Rise Start and Rise On programs) were 46,441 as of
March 31, 2021, a decrease of 6,144
from 52,585 as of March 31,
2020.
- New students enrolled[4] for Rise regular courses in
the first quarter of 2021 were 5,846, compared with 1,507 for the
first quarter of 2020. New students enrolled for other Rise courses
(including Rise Up, Can-Talk, other Rise online courses, STEAM,
courses provided by The Edge learning centers and light courses)
were 44,262 in the first quarter of 2021, compared with 32,551 for
the first quarter of 2020.
- The total number of the Company's learning centers as of
March 31, 2021 was 525, consisting of
95 self-owned (including two operated by The Edge) and 430
franchised learning centers.
[1] Non-GAAP cost of
revenues exclude relevant SBC expenses and amortization of
certain intangible assets, including teaching course license,
acquired as part of the junior ELT business by the Company from
certain third-party in 2013 (the "2013 acquisition") from cost
of revenues. Each of non-GAAP operating expenses, non-GAAP selling
and marketing expenses or non-GAAP general and administrative
expenses exclude relevant share-based compensation expenses and
amortization of certain intangible assets acquired as part of the
2013 acquisition. Non-GAAP operating loss and Non-GAAP net
loss attributable to RISE adds back share-based compensation
expenses and amortization of certain intangible assets acquired as
part of the 2013 acquisition. For details on the calculation of
each of these and the reconciliation of each to the most directly
comparable GAAP financial measure, see "About Non-GAAP Financial
Measures" and "Reconciliation of GAAP and Non-GAAP
Results."
|
[2] Adjusted EBITDA
excludes share-based compensation expenses from EBITDA.
|
[3] Students in class
refers to the students who were taking our ongoing courses as of a
given date.
|
[4] New students
enrolled refers to the newly acquired students who enrolled in our
courses during a given period of time.
|
|
Three Months Ended
March 31,
|
(in thousands RMB,
except for percentage and per ADS data)
|
2020
|
2021
|
Pct. Change
|
Revenues
|
108,989
|
261,541
|
140.0%
|
Operating
loss
|
(131,397)
|
(34,786)
|
N/A
|
Non-GAAP operating
loss
|
(127,050)
|
(30,042)
|
N/A
|
Net loss attributable
to RISE
|
(103,837)
|
(24,608)
|
N/A
|
Non-GAAP net loss
attributable to RISE
|
(99,490)
|
(19,864)
|
N/A
|
Net loss per ADS
attributable to RISE – basic
|
(1.84)
|
(0.44)
|
N/A
|
Net loss per ADS
attributable to RISE – diluted
|
(1.84)
|
(0.44)
|
N/A
|
Non-GAAP net loss per
ADS attributable to RISE – basic
|
(1.76)
|
(0.35)
|
N/A
|
Non-GAAP net loss per
ADS attributable to RISE – diluted
|
(1.76)
|
(0.35)
|
N/A
|
Adjusted
EBITDA
|
(108,006)
|
(5,105)
|
N/A
|
Ms. Lihong Wang, Chairwoman and
Chief Executive Officer of RISE, commented, "We started 2021 off on
a positive note with the business recovering strongly compared with
the prior year. Total revenue more than doubled year-over-year and
we generated positive operational cash flow in the first quarter.
Although there was resurgence of COVID-19 in certain areas of
northern China, effective
containment initiatives quickly brought those sporadic outbreaks
under control. Our OMO model continued to enable us to switch
between online and offline courses seamlessly when certain learning
centers had to suspend offline operations, which again proved to be
a highly effective way for us to stabilize the business in any
affected areas. During the quarter, all learning centers were in
full operation, except for most of our learning centers
in Beijing, and we saw both yearly and sequential growth and
improvement in key operation metrics including new student
enrollments, students in class and retention rates. We continued to
solidify our leading position in the after-school educational
industry and demonstrated our strong ability to resume our growth
trajectory in-line with strategic plans. Although we saw a decline
in the total number of students in class for Rise regular courses
in the first quarter, this was mainly due to the temporary closing
of learning centers in Beijing. We believe this is temporary
and expect more of our learning centers in Beijing to reopen by the end of the second
quarter of this year. As life returns to normalcy with COVID-19
well under control in China, we
expect our business to get back on track."
"To proactively navigate the challenging environment of the
domestic education market and drive sustainable long-term
development for our business, we are now working to fully upgrade
Rise into a multiform aptitude training provider. In addition to
our core ELT courses and other existing courses, we have also
launched two new brands to complete our aptitude training ecosystem
– Hiyeah, a brand focusing on children's social-emotional
development and related family education support, and WhySTEAM,
another brand focusing on STEAM-oriented aptitude development for
children. We expect to launch certain Hiyeah and WhySTEAM offline
learning centers in the second quarter of this year. Going forward,
we will continue to enhance our diversified product offerings,
catering to the needs of aptitude education, and further optimize
our OMO strategy to deliver sustainable growth to benefit our
shareholders."
Mr. Warren Wang, Chief Financial
Officer of RISE, added, "We saw significant improvement in both our
top and bottom lines on a yearly basis during the first quarter of
2021. Total revenue reached RMB261.5
million, up 140.0% from the same period of 2020. As a result
of our continuous cost control initiatives, net loss attributable
to RISE narrowed 76.3% year-over-year to RMB24.6 million. During the quarter, all our
learning centers were in full offline operation, except for most of
our learning centers in Beijing.
Only one of our self-owned learning centers in Beijing re-opened in March after the temporary
closing of all our learning centers in Beijing since late January as a result of the
resurgence of COVID-19. New student enrollments for Rise regular
courses were 5,846, compared with 8,023 for the preceding quarter
and 1,507 for the first quarter of 2020. The sequential decline was
mainly due to the strong seasonality in the ELT market, where
student enrollments are usually lower during the Chinese New
Year season in the first quarter, as well as the recently
introduced regulatory restrictions. As a result, new enrollments
for Rise regular courses in Beijing saw a quarter-over-quarter decline.
However, new enrollments for Rise regular courses in all cities
other than Beijing increased
quarter-over-quarter despite the seasonal factor. We saw similar
trends in students in class for Rise regular courses, which also
picked up on a sequential basis except in learning centers in
Beijing. In addition, the
retention rate in all cities other than Beijing significantly
improved and returned to pre-COVID levels. These results
demonstrated the strong growth momentum of Rise regular courses
after operations returned to normal in these areas. As a result, we
registered RMB77.2 million
(US$11.8 million) of operational cash
inflow in the first quarter of 2021, compared with RMB82.4 million and RMB108.5 million of cash outflows in the first
quarter of 2020 and fourth quarter of 2020, respectively. As of
March 31, 2021, our combined cash and
cash equivalents and restricted cash improved to RMB692.9 million (US$105.8
million). Moving forward, we will continue to execute our
proven OMO strategy to drive long-term growth by fully leveraging
our strong offline presence and multi-channel marketing
capabilities. We expect the number of students in class to be back
on track by the end of the second quarter of this year."
Financial Results for the first quarter of 2021
Revenues
Total revenues for the first quarter of 2021 increased by
RMB152.6 million, or 140.0%, to
RMB261.5 million (US$39.9 million) from RMB109.0 million for the same period of
the prior year.
- Revenues from educational programs for the first quarter of
2021 increased by 125.0% to RMB229.5
million (US$35.0 million).
Revenues from educational programs are composed of three parts:
revenues generated from regular courses such as Rise Start and Rise
On courses, revenues generated from Rise online programs which
include Rise Up, Can-Talk, other Rise online courses, STEAM, and
revenues generated from courses offered by The Edge. The
year-over-year increase in revenues from educational programs was
primarily due to both online and offline resumption of the
Company's self-owned learning centers as a result of the
alleviation of the COVID-19 pandemic and our quick OMO strategy
deployment, although there are still ongoing uncertainties and
challenges arising from COVID-19.
- Franchise revenues for the first quarter of 2021 increased by
420.6% to RMB31.8 million
(US$4.9 million), the year-over-year
increase was primarily due to a growth in recurring franchise
revenue as a result of the alleviation of the COVID-19
pandemic.
- Other revenues for the first quarter of 2021 decreased by 69.2%
year-over-year to RMB0.3 million
(US$0.1 million).
Cost of Revenues
Cost of revenues for the first quarter of
2021 increased by RMB19.7 million, or 13.8%, to
RMB162.2 million (US$24.8 million). The increase was primarily due
to increasing rental expenses as a result of the termination of
rental concessions during the COVID-19 pandemic, and the increase
in teachers' compensations as a result of the increased
teaching hours and the resumption of employer's contributions for
social insurance and payroll taxes. Additionally, the increase
was also primarily due to an increase in referral fees paid to
franchisees for new franchise business. Non-GAAP cost
of revenues1 for the first quarter of
2021 increased by 14.8% to RMB158.7 million (US$24.2 million).
Gross Profit/(Loss)
As a result of the foregoing, gross profit for the first quarter
of 2021 was RMB99.3 million (US$15.2 million), compared with gross
loss of RMB33.6 million for the first quarter
of 2020.
Operating Expenses
Total operating expenses for the first quarter of
2021 increased by RMB36.3
million, or 37.1%, to RMB134.1 million (US$20.5 million). Non-GAAP operating
expenses1 for the first quarter of
2021 were RMB132.9 million (US$20.3 million).
- Selling and marketing expenses increased by 48.9%
year-over-year to RMB64.3 million
(US$9.8 million) for the first
quarter of 2021, compared with RMB43.2
million for the first quarter of 2020. The increase was
primarily associated with increased online and offline marketing
channel expenses, coupled with incentive-based salary raises for
the Company's marketing staff. Non-GAAP selling and marketing
expenses1 for the first quarter of 2021 increased by
50.7% year-over-year to RMB63.6
million (US$9.7 million).
- General and administrative expenses increased by 27.8%
year-over-year to RMB69.8 million
(US$10.6 million) for the first
quarter of 2021, compared with RMB54.6
million for the first quarter of 2020. The increase was
mainly attributable to increased personnel costs. Non-GAAP general
and administrative expenses1 for the first quarter of
2021 increased by 24.7% year-over-year to RMB69.3 million (US$10.6
million).
Operating Loss
Operating loss for the first quarter of 2021 was
RMB34.8 million (US$5.3 million), compared with operating
loss of RMB131.4 million for the
same period of the prior year. Non-GAAP operating
loss1 for the first quarter of 2021 was
RMB30.0 million (US$4.6 million), as compared with non-GAAP
operating loss of RMB127.1 million for the same period of
the prior year.
Interest Expense
Interest expense for the first quarter of 2021 was
RMB5.5 million (US$0.8 million),
compared with RMB6.8 million for the same period of
the prior year. The decrease was primarily due to
the decreased interest rate on the Company's outstanding
loans.
Other Income
Other income for the first quarter of 2021 was RMB10.6 million (US$1.6
million), compared with RMB3.0 million for the
same period of the prior year.
Income Tax Benefit
Income tax benefit for the first quarter of 2021 was
RMB1.2 million (US$0.2 million), compared with income tax benefit
of RMB19.7 million for the same
period of the prior year.
Net Loss Attributable to RISE
Net loss attributable to RISE for the first quarter of
2021 was RMB24.6 million (US$3.8 million).
Non-GAAP net loss attributable to RISE for the first
quarter of 2021 was RMB19.9
million (US$3.0 million).
EBITDA represents net income/(loss) before
interests, taxes, depreciation, and amortization. EBITDA loss
for the first quarter of 2021 was RMB5.8 million (US$0.9
million) and adjusted EBITDA loss was RMB5.1 million (US$0.8
million).
Basic and Diluted Earnings per ADS
Basic and diluted net loss attributable to RISE per ADS was
RMB0.44 (US$0.07) for the first quarter of 2021.
Basic and diluted non-GAAP net loss attributable to RISE per ADS
was RMB0.35 (US$0.05) for the first quarter of 2021.
Cash Flow
Net cash inflow from operating activities for the first quarter
of 2021 was RMB77.2 million
(US$11.8 million), compared with
net cash outflow from operating activities of RMB82.4 million for the same period of the
prior year. The increase was mainly due to the increased
tuition fees collected for Rise regular courses as a result
of the alleviation of the COVID-19 pandemic.
Balance Sheet
As of March 31, 2021, the Company
had combined cash and cash equivalents and restricted
cash of RMB692.9 million
(US$105.8 million), as compared with
RMB639.2 million as of
December 31, 2020.
Current and non-current deferred revenue and customer
advances were RMB696.4 million (US$106.3 million) as of March 31, 2021, representing an increase of
15.7% from RMB601.9 million as
of December 31, 2020. The
growth was primarily due to the increased tuition fee
collection as a result of the alleviation of the COVID-19
pandemic. Deferred revenue and customer advances mainly consisted
of upfront tuition payments from students and initial franchise
fees from the Company's franchisees.
Business Outlook
We believe that we are well-positioned to navigate the rapidly
evolving market environment with our strategy to transform Rise
into a multiform aptitude training provider and capture potential
opportunities. Our learning centers in all cities other than
Beijing have been in full offline
operation mode so far in the second quarter of 2021 and seen strong
growth momentum. Due to local containment policies and restrictions
in Beijing, only one center
reopened in March while the other learning centers remained closed
for the quarter. We expect more of our learning centers in
Beijing to resume offline
operations by the end of the second quarter, at a pace regulated by
the government. Our flexibility to switch seamlessly between the
online and offline models and our ability to manage both operations
concurrently have helped us to mitigate risks and navigate these
challenging times. For our new business expansion, we expect to
open Hiyeah's first offline learning center in June 2021. Back in March, we launched three
WhySTEAM learning centers in Beijing and are in preparations to open three
self-owned learning centers in Shanghai and one franchised learning center in
Zhengzhou by the end of the second
quarter of this year. In addition, we have signed a memorandum of
understanding to acquire certain franchised learning centers in
Chengdu, which have a proven track
record of solid performance. Taking all these into account, we
reaffirm our revenue guidance for the full year of 2021 to be in
the range of RMB1,420 million to
RMB1,730 million.
Conference Call Information
RISE will hold a conference call on May
20, 2021 at 9:00 pm Eastern
Time (or May 21, 2021 at
9:00 am Beijing Time) to discuss the
financial results. Due to the outbreak of COVID-19, operator
assisted conference calls are not available at the moment. All
participants must preregister online prior to the call to receive
the dial-in details.
Conference call preregistration link is
http://apac.directeventreg.com/registration/event/2167868. Once
preregistration has been completed, participants will receive
dial-in numbers, an event passcode, and a unique registrant ID.
To join the conference, please dial the number you receive,
enter the event passcode followed by your unique registrant ID, and
you will be joined to the conference instantly.
A telephone replay will be accessible through May 27, 2021 by dialing the following
numbers:
United
States:
|
+1-646-254-3697
|
International:
|
+61-2-8199-0299
|
Mainland
China:
|
400-6322-162
|
Hong
Kong:
|
+852-3051-2780
|
Conference
ID:
|
# 2167868
|
A live and archived webcast of the conference call, together
with a copy of the presentation slides used for the conference
call, will also be available at the Company's investor
relations website at http://ir.risecenter.com/.
Exchange Rate
This announcement contains translations of certain
RMB amounts into U.S. dollars ("USD") at specified rates
solely for the convenience of the reader. Unless otherwise stated,
all translations from RMB to USD were made at the rate of
RMB6.5518 to US$1.00, the noon buying rate in effect on
March 31, 2021 in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or USD amounts referred could
be converted into USD or RMB, as the case may be, at any particular
rate or at all. For analytical presentation, all percentages are
calculated using the numbers presented in the financial statements
contained in this earnings release.
About Non-GAAP Financial Measures
To supplement RISE's financial results presented in accordance
with U.S. GAAP, the Company uses non-GAAP financial measures, which
are adjusted from results based on U.S. GAAP. Reconciliations of
non-GAAP financial measures to U.S. GAAP financial measures are set
forth in table at the end of this earnings release titled
"Reconciliation of GAAP and Non-GAAP Results," which provides more
details on the non-GAAP financial measures.
Non-GAAP cost of revenues, non-GAAP operating expenses,
including non-GAAP selling and marketing expenses and non-GAAP
general and administrative expenses, provides the Company with an
understanding of the results from the primary operations of the
Company's business by excluding the effects of certain
transaction-related expenses that do not reflect the ordinary
operating expenses of the Company's operations and share-based
compensation.
EBITDA, adjusted EBITDA, adjusted EBITDA margin and non-GAAP net
loss provide the Company with an understanding of the results
from the primary operations of the Company's business by excluding
the effects of certain transaction-related expenses that do not
reflect the ordinary EBITDA and net income/(loss) of the Company's
operations.
The Company uses non-GAAP operating expenses, including non-GAAP
selling and marketing expenses and non-GAAP general and
administrative expenses, non-GAAP operating income/(loss), non-GAAP
operating margin, EBITDA, adjusted EBITDA, adjusted EBITDA margin,
non-GAAP net loss attributable to RISE, and non-GAAP basic and
diluted net loss per ADS attributable to RISE to evaluate the
Company's period-over-period operating performance because the
Company's management believes these provide a more comparable
measure of the Company's continuing business as it adjusts for
transaction-related expenses that are not reflective of the normal
earnings of the Company's business. These measures may be useful to
an investor in evaluating the underlying operating performance of
the Company's business, and to enhance investors' overall
understanding of the historical and current financial performance
of the Company's continuing operations and prospects for the
future.
Non-GAAP financial information should not be considered a
substitute for or superior to U.S. GAAP results. In addition,
calculations of the Company's non-GAAP financial information
may be different from calculations used by other companies, and
therefore comparability may be limited.
Non-GAAP cost of revenues excludes relevant share-based
compensation expenses and amortization of certain intangible assets
("IA"), including teaching course license, acquired as part of the
2013 acquisition from cost of revenues. Each of non-GAAP operating
expenses, non-GAAP selling and marketing expenses or non-GAAP
general and administrative expenses excludes relevant share-based
compensation expenses and amortization of certain intangible assets
acquired as part of the 2013 acquisition. Non-GAAP operating loss
and Non-GAAP net loss attributable to RISE adds back share-based
compensation expenses and amortization of certain intangible assets
acquired as part of the 2013 acquisition.
EBITDA represents net income before interests, taxes,
depreciation and amortization. Adjusted EBITDA excludes
share-based compensation expenses from EBITDA.
For more information on non-GAAP financial measures, please see
the tables captioned "Reconciliations of non-GAAP financial
measures to the nearest comparable GAAP measures."
About RISE Education
RISE Education Cayman Ltd is a leading junior English Language
Training ("ELT") provider based in Beijing. Founded in 2007, the Company
pioneered the application of the "subject-based learning"
philosophy in China, which uses
language arts, math, natural science, and social science to teach
English in an immersive environment that helps students learn to
speak and think like a native speaker. Through three flagship
courses, Rise Start, Rise On, and Rise Up, and other complementary
products, the Company provides ELT to students aged three to six,
seven to twelve and thirteen to eighteen, respectively. The
Company's highly scalable business model includes both self-owned
and franchised learning centers. For more information, please visit
http://en.risecenter.com/.
Safe Harbor Statement
This press release contains statements of a forward-looking
nature. These statements, including the statements relating to the
Company's future financial and operating results, are made under
the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. You can identify these
forward-looking statements by terminology such as "will,"
"expects," "believes," "anticipates," "intends," "estimates" and
similar statements. Among other things, management's quotations and
the Business Outlook section contain forward-looking statements.
These forward-looking statements involve known and unknown risks
and uncertainties and are based on current expectations,
assumptions, estimates and projections about RISE and the industry.
Potential risks and uncertainties include, but are not limited to,
those relating to its ability to attract new students and retain
existing students, its ability to maintain or enhance its brand,
its ability to compete effectively against its competitors, its
ability to execute its growth strategy, its ability to introduce
new products or enhance existing products, its ability to obtain
required licenses, permits, filings or registrations, its ability
to grow or operate or effectively monitor its franchise business,
quarterly variations in its operating results caused by factors
beyond its control, macroeconomic conditions in China and government policies and regulations
relating to its corporate structure, business and industry and
their potential impact on its future business development,
financial condition and results of operations. All information
provided in this press release is as of the date hereof, and RISE
undertakes no obligation to update any forward-looking statements
to reflect subsequent occurring events or circumstances, or changes
in its expectations, except as may be required by law. Although
RISE believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you
that its expectations will turn out to be correct, and investors
are cautioned that actual results may differ materially from the
anticipated results. Further information regarding risks and
uncertainties faced by RISE is included in RISE's filings with the
U.S. Securities and Exchange Commission, including its annual
report on Form 20-F for the year ended December 31, 2020.
Investor Relations Contact
Aaron Li
RISE Education
Email: riseir@rdchina.net
Tel: +86 (10) 8559-9191
RISE EDUCATION
CAYMAN LTD
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
As
of
|
|
December 31
|
|
March 31
|
|
March 31
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
554,620
|
|
675,226
|
|
103,060
|
Restricted
cash
|
84,564
|
|
17,667
|
|
2,697
|
Accounts receivable,
net
|
2,281
|
|
5,955
|
|
909
|
Amounts due from
related parties
|
733
|
|
222
|
|
34
|
Inventories
|
7,814
|
|
10,243
|
|
1,563
|
Prepaid expenses and
other current assets
|
94,556
|
|
97,365
|
|
14,860
|
Total current
assets
|
744,568
|
|
806,678
|
|
123,123
|
Property and
equipment, net
|
107,537
|
|
103,469
|
|
15,792
|
Intangible assets,
net
|
185,647
|
|
181,887
|
|
27,761
|
Long-term
investment
|
-
|
|
-
|
|
-
|
Goodwill
|
659,255
|
|
660,290
|
|
100,780
|
Deferred tax
assets
|
34,241
|
|
39,289
|
|
5,997
|
Other non-current
assets
|
55,853
|
|
58,249
|
|
8,891
|
Operating lease
right-of-use assets
|
639,304
|
|
621,521
|
|
94,863
|
Total
assets
|
2,426,405
|
|
2,471,383
|
|
377,207
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Current portion of
long-term loan
|
226,744
|
|
21,293
|
|
3,250
|
Accounts
payable
|
11,028
|
|
13,369
|
|
2,041
|
Accrued expenses and
other current liabilities
|
164,193
|
|
164,860
|
|
25,162
|
Deferred revenue and
customer advances
|
563,736
|
|
659,474
|
|
100,655
|
Income taxes
payable
|
5,556
|
|
7,286
|
|
1,112
|
Current portion of
operating lease liabilities
|
197,098
|
|
198,623
|
|
30,316
|
Total current
liabilities
|
1,168,355
|
|
1,064,905
|
|
162,536
|
Long-term
loan
|
191,397
|
|
389,277
|
|
59,415
|
Deferred revenue and
customer advances
|
38,204
|
|
36,920
|
|
5,635
|
Deferred tax
liabilities
|
24,011
|
|
22,165
|
|
3,383
|
Other non-current
liabilities
|
50,447
|
|
51,472
|
|
7,856
|
Operating lease
liabilities
|
452,485
|
|
430,049
|
|
65,639
|
Total
liabilities
|
1,924,899
|
|
1,994,788
|
|
304,464
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary
shares
|
6,959
|
|
6,961
|
|
1,062
|
Additional paid-in
capital
|
603,173
|
|
604,174
|
|
92,215
|
Statutory
reserves
|
105,357
|
|
105,357
|
|
16,081
|
Accumulated
deficit
|
(260,019)
|
|
(284,627)
|
|
(43,443)
|
Accumulated other
comprehensive income
|
39,642
|
|
39,268
|
|
5,994
|
Total Rise
Education Cayman Ltd shareholders'
equity
|
495,112
|
|
471,133
|
|
71,909
|
Non-controlling
interests
|
6,394
|
|
5,462
|
|
834
|
Total
equity
|
501,506
|
|
476,595
|
|
72,743
|
Total liabilities,
non-controlling interests and
shareholders' equity
|
2,426,405
|
|
2,471,383
|
|
377,207
|
RISE EDUCATION
CAYMAN LTD
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(in thousands,
except share and ADS data and per share and per ADS
data)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
|
108,989
|
|
261,541
|
|
39,919
|
Educational
programs
|
|
101,989
|
|
229,461
|
|
35,022
|
Franchise
revenues
|
|
6,109
|
|
31,806
|
|
4,855
|
Others
|
|
891
|
|
274
|
|
42
|
Cost of
revenues
|
|
(142,568)
|
|
(162,238)
|
|
(24,762)
|
Gross
(loss)/profit
|
|
(33,579)
|
|
99,303
|
|
15,157
|
Selling and marketing
expenses
|
|
(43,220)
|
|
(64,336)
|
|
(9,820)
|
General and
administrative expenses
|
|
(54,598)
|
|
(69,753)
|
|
(10,646)
|
Operating
loss
|
|
(131,397)
|
|
(34,786)
|
|
(5,309)
|
Interest
income
|
|
3,852
|
|
2,780
|
|
424
|
Interest
expense
|
|
(6,791)
|
|
(5,493)
|
|
(838)
|
Foreign currency
exchange (loss)/gain
|
|
(79)
|
|
123
|
|
19
|
Other income,
net
|
|
2,987
|
|
10,611
|
|
1,619
|
Loss before income
tax expense
|
|
(131,428)
|
|
(26,765)
|
|
(4,085)
|
Income tax
benefit
|
|
19,728
|
|
1,225
|
|
187
|
Net
loss
|
|
(111,700)
|
|
(25,540)
|
|
(3,898)
|
Add: net loss
attributable to non-controlling
interests
|
|
7,863
|
|
932
|
|
142
|
Net loss
attributable to RISE Education
Cayman Ltd
|
|
(103,837)
|
|
(24,608)
|
|
(3,756)
|
|
|
|
|
|
|
|
Net loss per
ordinary share:
|
|
|
|
|
|
|
Basic
|
|
(0.92)
|
|
(0.22)
|
|
(0.03)
|
Diluted
|
|
(0.92)
|
|
(0.22)
|
|
(0.03)
|
|
|
|
|
|
|
|
Net loss per ADS
(Note 1):
|
|
|
|
|
|
|
Basic
|
|
(1.84)
|
|
(0.44)
|
|
(0.07)
|
Diluted
|
|
(1.84)
|
|
(0.44)
|
|
(0.07)
|
|
|
|
|
|
|
|
Shares used in net
loss per ordinary share computation:
|
|
|
|
|
Basic
|
|
112,756,311
|
|
112,953,440
|
|
112,953,440
|
Diluted
|
|
112,756,311
|
|
112,953,440
|
|
112,953,440
|
|
|
|
|
|
|
|
ADSs used in net
loss per ADS computation: (Note 1)
|
|
|
|
|
Basic
|
|
56,378,155
|
|
56,476,720
|
|
56,476,720
|
Diluted
|
|
56,378,155
|
|
56,476,720
|
|
56,476,720
|
|
|
|
|
|
|
|
Note 1: Each ADS
represents two ordinary shares.
|
RISE EDUCATION
CAYMAN LTD
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(in thousands,
except share and ADS data and per share and per ADS
data)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
USD
|
Net
loss
|
|
(111,700)
|
|
(25,540)
|
|
(3,898)
|
Other
comprehensive income/(loss), net of tax of nil:
|
|
|
|
|
Foreign currency
translation adjustments
|
|
251
|
|
(374)
|
|
(57)
|
Other
comprehensive income/(loss)
|
|
251
|
|
(374)
|
|
(57)
|
Comprehensive
loss
|
|
(111,449)
|
|
(25,914)
|
|
(3,955)
|
Add: comprehensive
loss attributable to non-controlling
interests
|
|
7,863
|
|
932
|
|
142
|
Comprehensive loss
attributable to RISE Education
Cayman Ltd
|
|
(103,586)
|
|
(24,982)
|
|
(3,813)
|
RISE EDUCATION
CAYMAN LTD
RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
(in thousands,
except ADS data and per ADS data)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
USD
|
Net
loss
|
|
(111,700)
|
|
(25,540)
|
|
(3,898)
|
Share-based
compensation ("SBC")
|
|
(41)
|
|
669
|
|
102
|
IA amortization
arising from 2013 acquisition
|
|
4,388
|
|
4,075
|
|
622
|
Non-GAAP net
loss
|
|
(107,353)
|
|
(20,796)
|
|
(3,174)
|
Add: net loss
attributable to non-controlling interests
|
|
7,863
|
|
932
|
|
142
|
Non-GAAP net loss
attributable to RISE Education
Cayman Ltd
|
|
(99,490)
|
|
(19,864)
|
|
(3,032)
|
|
|
|
|
|
|
|
Net
loss
|
|
(111,700)
|
|
(25,540)
|
|
(3,898)
|
Add:
Depreciation
|
|
12,646
|
|
10,797
|
|
1,648
|
Add:
Amortization
|
|
7,878
|
|
7,481
|
|
1,142
|
Add: Interest
expense
|
|
6,791
|
|
5,493
|
|
838
|
Add: Income tax
benefit
|
|
(19,728)
|
|
(1,225)
|
|
(187)
|
Less: Interest
income
|
|
3,852
|
|
2,780
|
|
424
|
EBITDA
|
|
(107,965)
|
|
(5,774)
|
|
(881)
|
SBC
|
|
(41)
|
|
669
|
|
102
|
Adjusted
EBITDA
|
|
(108,006)
|
|
(5,105)
|
|
(779)
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
142,568
|
|
162,238
|
|
24,762
|
Personnel
costs
|
|
65,859
|
|
72,007
|
|
10,990
|
Rental
costs
|
|
50,873
|
|
60,384
|
|
9,216
|
Others
|
|
25,836
|
|
29,847
|
|
4,556
|
Less: SBC
|
|
699
|
|
192
|
|
29
|
Less: IA amortization
arising from 2013 acquisition
|
|
3,577
|
|
3,322
|
|
507
|
Non-GAAP cost of
revenues
|
|
138,292
|
|
158,724
|
|
24,226
|
|
|
|
|
|
|
|
Non-GAAP gross
profit/(loss)
|
|
(29,303)
|
|
102,817
|
|
15,693
|
|
|
|
|
|
|
|
Selling and
marketing expenses
|
|
43,220
|
|
64,336
|
|
9,820
|
Less: SBC
|
|
195
|
|
(25)
|
|
(4)
|
Less: IA amortization
arising from 2013 acquisition
|
|
811
|
|
753
|
|
115
|
Non-GAAP selling
and marketing expenses
|
|
42,214
|
|
63,608
|
|
9,709
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
54,598
|
|
69,753
|
|
10,646
|
Less: SBC
|
|
(935)
|
|
502
|
|
77
|
Non-GAAP general
and administrative expenses
|
|
55,533
|
|
69,251
|
|
10,569
|
|
|
|
|
|
|
|
Operating
expense
|
|
97,818
|
|
134,089
|
|
20,466
|
Less: SBC
|
|
(740)
|
|
477
|
|
73
|
Less: IA amortization
arising from 2013 acquisition
|
|
811
|
|
753
|
|
115
|
Non-GAAP operating
expense
|
|
97,747
|
|
132,859
|
|
20,278
|
|
|
|
|
|
|
|
Operating
loss
|
|
(131,397)
|
|
(34,786)
|
|
(5,309)
|
SBC
|
|
(41)
|
|
669
|
|
102
|
IA amortization
arising from 2013 acquisition
|
|
4,388
|
|
4,075
|
|
622
|
Non-GAAP operating
loss
|
|
(127,050)
|
|
(30,042)
|
|
(4,585)
|
|
|
|
|
|
|
|
Non-GAAP net loss per
ADS attributable to RISE-basic (Note
1)
|
|
(1.76)
|
|
(0.35)
|
|
(0.05)
|
Non-GAAP net loss per
ADS attributable to RISE-diluted
(Note 1)
|
|
(1.76)
|
|
(0.35)
|
|
(0.05)
|
|
|
|
|
|
|
|
ADSs used in
calculating net loss per ADS-basic (Note 1)
|
|
56,378,155
|
|
56,476,720
|
|
56,476,720
|
ADSs used in
calculating net loss per ADS-diluted (Note 1)
|
|
56,378,155
|
|
56,476,720
|
|
56,476,720
|
|
|
|
|
|
|
|
Note 1: Each ADS
represents two ordinary shares.
|
View original
content:http://www.prnewswire.com/news-releases/rise-education-announces-first-quarter-2021-unaudited-financial-results-301295690.html
SOURCE RISE Education Cayman Ltd