Indicate by check mark whether
the registrant files or will file annual reports under cover Form
20-F
or Form
40-F.
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule
12g3-2(b)
under the Securities Exchange Act of
1934. Yes ☐ No ☒
If Yes is marked, indicate below the file
number assigned to the registrant in connection with Rule
12g3-2(b):
82- N/A
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
|
|
|
China Distance Education Holdings Limited
|
|
|
By:
|
|
/s/ Mark Marostica
|
Name:
|
|
Mark Marostica
|
Title:
|
|
Co-Chief
Financial Officer
|
|
|
By:
|
|
/s/ Philip Chan
|
Name:
|
|
Philip Chan
|
Title:
|
|
Co-Chief
Financial Officer
|
Date: March 9, 2018
3
Exhibit 99.1
China Distance Education Holdings Limited Reports Financial Results for First
Quarter Fiscal Year 2018
- First Quarter 2018 Net Revenue Up 12.2% Year-Over-Year to $35.9 Million,
Exceeding
High-End
of Guidance Range -
- First Quarter 2018 Cash Receipts from Online Course Registration Up 50.4% Year -
Over-Year to $40.3 Million -
BEIJING
March 7, 2018 China Distance Education Holdings Limited (NYSE: DL) (CDEL, or the Company), a leading provider of online education and value-added services for professionals and corporate clients in China,
today announced unaudited financial results for the first quarter of fiscal year 2018 ended December 31, 2017.
First Quarter Fiscal 2018 Financial and
Operational Highlights
|
|
|
Net revenue increased by 12.2% to $35.9 million from $32.0 million in the prior year period.
|
|
|
|
Total course enrollments were 1,227,000, a decrease of 5.1% from the first quarter of fiscal 2017.
|
|
|
|
Cash receipts from online course registration were $40.3 million, a 50.4% increase from the first quarter of fiscal 2017.
|
|
|
|
Gross profit decreased by 8.7% to $17.5 million from $19.2 million in the prior year period.
|
|
|
|
Non-GAAP
1
gross profit decreased by 8.7% to $17.5 million from $19.2 million in the prior year period.
|
|
|
|
Gross margin was 48.8%, compared with 59.9% in the prior year period.
Non-GAAP
1
gross margin was 48.9%, compared with 60.1% in
the prior year period.
|
|
|
|
Operating income decreased by 35.8% to $5.1 million from $8.0 million in the prior year period.
|
|
|
|
Non-GAAP
1
operating income decreased by 33.6% to $5.6 million from $8.5 million in the prior year period.
|
|
|
|
Net income was $94,000, compared with net income of $8.6 million in the prior year period.
|
|
|
|
Non-GAAP
1
net income was $0.6 million compared with net income of $9.1 million in the prior year period.
|
|
|
|
Basic and diluted net income per American Depositary Share (ADS) were $0.003, compared with basic and diluted net income per ADS of $0.260 and $0.259, respectively, for the first quarter of fiscal 2017. Each
ADS represents four ordinary shares.
|
1
|
For more information about the
non-GAAP
financial measures contained in this press release, please see Use of
Non-GAAP
Financial
Measures below.
|
4
|
|
|
Basic and diluted
non-GAAP
1
net income per ADS were $0.018, compared with basic and diluted
non-GAAP
1
net income per ADS of $0.276 and $0.275, respectively, for the first quarter of fiscal 2017.
|
|
|
|
Cash flow from operations decreased by 19.9% to $13.2 million from $16.5 million in the first quarter of fiscal 2017.
|
Mr. Zhengdong Zhu, Chairman and CEO of CDEL, said, We are pleased to report first quarter net revenue growth of 12.2% year-over-year, which
exceeded the high end of our guidance range. Better-than-expected first quarter net revenue was driven primarily by the continued strength of our accounting vertical as well as strong growth from the sale of books and reference materials. Our first
quarter total course enrollments were down 5.1% year-over-year, largely due to a decline in accounting continuing education course enrollments as a result of the previously disclosed cancellation of the Accounting Certificate examination. Excluding
accounting continuing education course enrollments, our first quarter total course enrollments increased 26.4% year-over-year. In particular, our first quarter online accounting test preparation course enrollments grew 39.3% year-over-year. We are
pleased to report that the strong growth of online accounting test preparation course enrollments contributed to an impressive 50.4% year-over-year increase in cash receipts from online course registration.
Mr. Zhu concluded, As Chinas preeminent provider of online education and value-added services for professionals and corporate clients, we
strive to build industry-leading education verticals that promote our lifelong learning ecosystem. With a proven business model and powerful growth initiatives in place, we look forward to continuing our relentless efforts to grow our diversified
industry verticals and broaden our course offerings and services in key disciplines.
Mr. Mark Marostica,
Co-Chief
Financial Officer of CDEL, said, As previously disclosed, we experienced a significant decrease in our operating margin in the fourth quarter of fiscal 2017 (September), primarily due to
increased salaries and related expenses, as well as an increase in advertising and promotional expenses. As anticipated, the increase in salaries and related expenses in the first quarter of fiscal 2018 compared with the
year-ago
period continued to be the primary driver of the year-over-year decline in our first quarter operating margin. However, excluding the headcount of Jiangsu Asset, which we acquired in November 2017, our
first quarter headcount remained relatively stable compared with the fourth quarter of fiscal 2017 as expected.
Mr. Marostica continued,
We delivered strong growth of cash receipts in the first quarter despite a moderation in the rate of growth of our advertising and promotional expenses, which were up only approximately 7% year-over-year in the first quarter, showcasing the
strength of our brand and wide appeal of our courses to students. We anticipate the moderation in the rate of growth of advertising and promotion spending and relatively stable headcount will extend into our second quarter of fiscal 2018 as well,
and augur an improvement in our operating margin in the second half of fiscal 2018.
5
First Quarter Fiscal 2018 Financial Results
Net Revenue
.
Total net revenue increased by 12.2% to $35.9 million in the first quarter of fiscal 2018 from $32.0 million
in the first quarter of fiscal 2017. Net revenue from online education services, books and reference materials, and other sources contributed 62.6%, 6.6% and 30.8%, respectively, of total net revenues for the first quarter of fiscal 2018.
Online education services.
Net revenue from online education services increased by 11.6% to $22.4 million in the first
quarter of fiscal 2018 from $20.1 million in the first quarter of fiscal 2017, mainly due to strong revenue growth from our accounting vertical. In particular, the strong revenue growth of elementary APQE courses more than offset the adverse
revenue impact from the cancellation of the Accounting Certificate Examination and the downstream effect of this examination cancellation on Accounting Continuing Education revenue. In addition, the strong revenue growth from intermediate APQE and
accounting practical skills training courses also contributed to the revenue growth. The year-over-year increase in revenue from online education services was partially offset by a decrease in revenue from E&C Continuing Education courses.
Books and reference materials.
Net revenue from books and reference materials increased by 44.8% to $2.4 million in the first
quarter of fiscal 2018, from $1.6 million in the first quarter of fiscal 2017.
Others
.
Net revenue from
other sources increased by 8.1% to $11.1 million in the first quarter of fiscal 2018 from $10.2 million in the first quarter of fiscal 2017, primarily due to revenue growth from offline accounting professional training courses. The
increase in revenue from other sources was partially offset by year-over-year decreases in revenue from the sale of learning simulation software and business
start-up
training services.
Cost of Sales
.
Cost of sales increased by 43.5% to $18.4 million in the first quarter of fiscal 2018 from $12.8 million
in the first quarter of fiscal 2017.
Non-GAAP
1
cost of sales increased by 43.6% to $18.3 million in the first quarter of fiscal 2018 from
$12.8 million in the first quarter of fiscal 2017. The increase was mainly due to increased salaries and related expenses resulting from a higher number of personnel, increased cost of books and reference materials, increased rental and related
expenses, as well as other miscellaneous expenses.
Gross Profit and Gross Margin
.
Gross profit was $17.5 million in the
first quarter of fiscal 2018, down 8.7% from $19.2 million in the prior year period.
Non-GAAP
1
gross profit was $17.5 million, down 8.7% from
$19.2 million in the prior year period. Gross margin was 48.8% in the first quarter of fiscal 2018, compared with 59.9% in the first quarter of fiscal 2017.
Non-GAAP
1
gross margin was 48.9% in the first quarter of fiscal 2018, compared with 60.1% in the first quarter of fiscal 2017.
Operating Expenses
.
Total operating expenses increased by 20.5% to $14.1 million in the first quarter of fiscal 2018, from
$11.7 million in the prior year period.
Non-GAAP
1
total operating expenses increased by 21.3% to $13.7 million in the first quarter of fiscal
2018, from $11.3 million in the prior year period.
Selling expenses.
Selling expenses increased by 27.0% to
$9.1 million in the first quarter of fiscal 2018 from $7.2 million in the prior year period.
Non-GAAP
1
selling expenses increased by 27.0% to
$9.1 million in the first quarter of fiscal 2018 from $7.2 million in the prior year period. The increase was primarily driven by increased salaries and related expenses and increased commissions to online agents.
General and administrative expenses
.
General and administrative expenses increased by 10.3% to $5.0 million in the first
quarter of fiscal 2018 from $4.5 million in the prior year period.
Non-GAAP
1
general and administrative expenses increased by 11.4% to
$4.6 million in the first quarter of fiscal 2018 from $4.1 million in the prior year period. The increase was mainly due to increased salaries and related expenses.
6
Income Tax Expense
.
Income tax expense decreased by 72.0% to $0.7 million in the first
quarter of fiscal 2018 from $2.4 million in the prior year period, primarily due to a decrease in taxable income.
Net
Income
.
As a result of the foregoing, net income was $94,000 in the first quarter of fiscal 2018 compared with net income of $8.6 million in the prior year period.
Non-GAAP
1
net income was $0.6 million in the first quarter of fiscal 2018 compared with net income of $9.1 million in the prior year period.
Operating Cash Flow
.
Net operating cash inflow decreased by 19.9% to $13.2 million in the first quarter of fiscal 2018
from $16.5 million in the prior year period. The decrease in operating cash inflow was mainly attributable to the decrease in net income before
non-cash
items generated in the first quarter of fiscal
2018. The increase in accounts receivable, inventories, prepayments and other current assets, and the decrease in income tax payable also contributed to the operating cash outflow. This operating cash outflow was partially offset by the increase in
accrued expenses and other liabilities, and deferred revenue.
Cash and Cash Equivalents, Term Deposits, Restricted Cash and Short-term
Investments
. Cash and cash equivalents, term deposits, restricted cash and short-term investments as of December 31, 2017 increased by 2.3% to $103.0 million from $100.6 million as of September 30, 2017, mainly due
to the operating cash inflow generated and a
1-year
bank loan of $20.1 million raised in the first quarter of fiscal 2018. The increase was partially offset by (i) the payments of balances of
$5.4 million and $0.4 million in connection with acquisition of Jiangsu Asset and investment in Chongqing Moses Robots, respectively, (ii) the payments of $2.4 million and $3.8 million in connection with investments in
Hangzhou Wanting and Beijing teacheredu, respectively, (iii) the payment of deposit of $7.6 million for the purchase of an office building in Xiamen, (iv) the repayment of a short-term loan from a related party of $1.7 million,
(v) the repayment of a bank loan of $15.0 million and (vi) the capital expenditure of $1.2 million.
Outlook
For the second quarter of fiscal 2018, the Company expects to generate total net revenue in the range of $27.8 million to $28.9 million, representing
year-over-year growth of approximately 27% to 32%.
For fiscal year 2018, the Company expects to generate total net revenues in the range of
$150.6 million to $157.2 million, representing year-over-year growth of approximately 15% to 20%.
The above guidance reflects the
Companys current and preliminary view, which is subject to change.
7
Conference Call
Management will hold a conference call at 8:00 a.m. Eastern Time on Thursday, March 8, 2018 (9:00 p.m. Beijing Time on Thursday, March 8, 2018) to
discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:
US Toll Free:
+1-866-519-4004
International:
+65-6713-5090
Mainland China:
400-620-8038
Hong Kong:
+852-3018-6771
United Kingdom:
+44-203-6214-779
Passcode: CDEL or DL
A telephone replay will be available two hours after the call until March 15, 2018 by dialing:
US Toll Free:
+1-855-452-5696
International:
+61-2-8199-0299
Mainland China:
400-632-2162
Hong Kong:
800-963-117
United Kingdom:
0808-234-0072
Replay Passcode: 9661389
Additionally, a live and archived
webcast of the conference call will be available at
http://ir.cdeledu.com
.
About China Distance Education Holdings Limited
China Distance Education Holdings Limited is a leading provider of online education and value-added services for professionals and corporate clients in China.
The courses offered by the Company through its websites are designed to help professionals seeking to obtain and maintain professional licenses and to enhance their job skills through our professional development courses in China in the areas of
accounting, healthcare, engineering & construction, and other industries. The Company also offers professional education courses for participants in the national judicial examination, online test preparation courses for self-taught learners
pursuing higher education diplomas or degrees, test preparation courses for university students intending to take the nationwide graduate school entrance exam, practical accounting training courses for college students and working professionals, as
well as online language courses and third-party developed online courses. In addition, the Company provides business services to corporate clients, including but not limited to tax advisory, bookkeeping and accounting outsourcing services. For
further information, please visit
http://ir.cdeledu.com
.
8
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, may, should, potential, continue, expect, predict,
anticipate, future, intend, plan, believe, is/are likely to, estimate and similar statements. Among other things, the outlook for the second quarter and full fiscal
year 2018 and quotations from management in this announcement, as well as the Companys strategic and operational plans (in particular, the anticipated benefits of strategic growth initiatives, including the promotion of the Companys
lifelong learning ecosystem, as well as cost control) contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic and annual reports to the SEC, in press releases and other written
materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Companys beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and
growth strategies; future prospects and market acceptance of our courses and other products and services; our future business development and results of operations; projected revenues, profits, earnings and other estimated financial information;
projected enrollment numbers; our plans to expand and enhance our courses and other products and services; competition in the education and test preparation markets; and Chinese laws, regulations and policies, including those applicable to the
Internet, Internet content providers, the education and telecommunications industries, mergers and acquisitions, taxation and foreign exchange.
Further
information regarding these and other risks is included in the Companys annual report on Form
20-F
and other documents filed or furnished with the SEC. All information provided in this press release is
as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Statement Regarding Unaudited Financial Information
The
unaudited financial information set forth in this press release is preliminary and subject to adjustments. Adjustments to the financial statements may be identified when audit work is performed for the
year-end
audit, which could result in significant differences from this preliminary unaudited financial information.
Use of
Non-GAAP
Financial Measures
To supplement the Companys consolidated financial results presented in accordance with U.S. generally accepted accounting principles, or GAAP, the
Company uses the following measures defined as
non-GAAP
financial measures:
non-GAAP
net income, operating income, gross profit, cost of sales, selling expenses, general
and administrative expenses, net income margin, operating margin, gross profit margin and basic and diluted earnings per ADS and per share. The presentation of these
non-GAAP
financial measures is not intended
to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these
non-GAAP
financial measures, please see the table
captioned Reconciliations of
non-GAAP
measures to comparable GAAP measures set forth at the end of this release.
The Company believes that these
non-GAAP
financial measures provide meaningful supplemental information regarding its
performance and liquidity by excluding share-based compensation expenses. However,
non-GAAP
financial measures may not be indicative of the Companys operating performance from a cash perspective. The
Company believes that both management and investors benefit from these
non-GAAP
financial measures in assessing its performance and when planning and forecasting future periods. These
non-GAAP
financial measures also facilitate managements internal comparisons to the Companys historical performance and liquidity. The Company computes its
non-GAAP
financial measures using the same consistent method from quarter to quarter. The Company believes these
non-GAAP
financial measures are useful to investors in
allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of excluding share-based compensation expenses from the above-mentioned line items and
presenting these
non-GAAP
measures is that such items may continue to be for the foreseeable future a significant recurring expense or income in our business. Management compensates for this limitation by
providing specific information regarding the GAAP amounts excluded from each
non-GAAP
measure. The accompanying table at the end of this release provides more detail on the reconciliations between GAAP
financial measures that are most directly comparable to
non-GAAP
financial measures.
9
Contacts:
|
|
|
China Distance Education Holdings Limited
Investor Relations Department
Tel:
+86-10-8231-9999
ext. 1805
Email:
IR@cdeledu.com
|
|
The Piacente Group | Investor Relations
Brandi
Piacente
Tel: +1
212-481-2050
Email:
DL@tpg-ir.com
|
(Financial Tables on Following Pages)
10
China Distance Education Holdings Limited
Consolidated Balance Sheets
(in thousands of US Dollars, except number of shares and per share data)
|
|
|
|
|
|
|
|
|
|
|
September
30, 2017
|
|
|
December
31, 2017
|
|
|
|
(Derived from Audited)
|
|
|
(Unaudited)
|
|
Assets:
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
60,526
|
|
|
|
59,295
|
|
Restricted cash
|
|
|
34,855
|
|
|
|
38,404
|
|
Short term investments
|
|
|
5,261
|
|
|
|
5,303
|
|
Accounts receivable, net of allowance for doubtful accounts of US$1,280 and US$1,191 as of
December 31, 2017 and September 30, 2017, respectively
|
|
|
5,525
|
|
|
|
7,418
|
|
Inventories
|
|
|
864
|
|
|
|
2,844
|
|
Prepayment and other current assets
|
|
|
10,439
|
|
|
|
14,655
|
|
Deferred tax assets, current portion
|
|
|
1,654
|
|
|
|
|
|
Deferred cost
|
|
|
711
|
|
|
|
639
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
119,835
|
|
|
|
128,558
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
14,022
|
|
|
|
17,023
|
|
Goodwill
|
|
|
29,459
|
|
|
|
33,721
|
|
Long term investments
|
|
|
43,631
|
|
|
|
52,381
|
|
Other intangible assets, net
|
|
|
9,947
|
|
|
|
10,410
|
|
Deposit for purchase of
non-current
assets
|
|
|
641
|
|
|
|
8,206
|
|
Deferred tax assets, non-current portion
|
|
|
|
|
|
|
3,078
|
|
Other
non-current
assets
|
|
|
7,016
|
|
|
|
5,868
|
|
|
|
|
|
|
|
|
|
|
Total
non-current
assets
|
|
|
104,716
|
|
|
|
130,687
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
224,551
|
|
|
|
259,245
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity:
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Bank borrowings
|
|
|
29,965
|
|
|
|
35,079
|
|
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the
consolidated VIE without recourse to China Distance Education Holdings Limited of US$37,012 and US$31,684 as of December 31, 2017 and September 30, 2017, respectively)
|
|
|
38,728
|
|
|
|
44,326
|
|
Amount due to a related party
|
|
|
1,648
|
|
|
|
|
|
Income tax payable (including income tax payable of the consolidated VIE without recourse to China
Distance Education Holdings Limited of US$3,802 and US$3,641 as of December 31, 2017 and September 30, 2017, respectively)
|
|
|
6,750
|
|
|
|
4,994
|
|
Deferred revenue (including deferred revenue of the consolidated VIE without recourse to China
Distance Education Holdings Limited of US$66,014 and US$49,575 as of December 31, 2017 and September 30, 2017, respectively)
|
|
|
50,506
|
|
|
|
67,085
|
|
Refundable fees (including refundable fees of the consolidated VIE without recourse to China
Distance Education Holdings Limited of US$833 and US$1,074 as of December 31, 2017 and September 30, 2017, respectively)
|
|
|
1,074
|
|
|
|
833
|
|
Dividend payable
|
|
|
39
|
|
|
|
14,970
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
128,710
|
|
|
|
167,287
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
Deferred tax liabilities, non-current portion
|
|
|
3,099
|
|
|
|
4,522
|
|
Long-term bank borrowing
|
|
|
19,930
|
|
|
|
20,380
|
|
|
|
|
|
|
|
|
|
|
Total non-current liabilities
|
|
|
23,029
|
|
|
|
24,902
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
151,739
|
|
|
|
192,189
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Ordinary shares (par value of US$0.0001 per share at December 31, 2017 and September 30,
2017, respectively; Authorized 500,000,000 shares at December 31, 2017 and September 30, 2017, respectively; Issued and outstanding 132,804,973 and 131,854,773 shares at December 31, 2017 and September 30, 2017,
respectively)
|
|
|
13
|
|
|
|
13
|
|
Additional
paid-in
capital
|
|
|
19,097
|
|
|
|
19,532
|
|
Accumulated other comprehensive loss (gain)
|
|
|
(3,367
|
)
|
|
|
1,314
|
|
Retained Earnings
|
|
|
33,040
|
|
|
|
18,185
|
|
|
|
|
|
|
|
|
|
|
Total China Distance Education Holdings Limited shareholders equity
|
|
|
48,783
|
|
|
|
39,044
|
|
Noncontrolling interest
|
|
|
24,029
|
|
|
|
28,012
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
72,812
|
|
|
|
67,056
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
224,551
|
|
|
|
259,245
|
|
|
|
|
|
|
|
|
|
|
11
China Distance Education Holdings Limited
Unaudited Consolidated Statements Of Operations
(in thousands of US dollars, except number of shares, per share and per ADS data)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
2016
|
|
|
2017
|
|
Sales, net of business tax, value-added tax and related surcharges:
|
|
|
|
|
|
|
|
|
Online education services
|
|
|
20,106
|
|
|
|
22,433
|
|
Books and reference materials
|
|
|
1,641
|
|
|
|
2,377
|
|
Other revenue
|
|
|
10,236
|
|
|
|
11,068
|
|
- Sale of learning simulation software
|
|
|
6,463
|
|
|
|
6,160
|
|
- Business
start-up
training services
|
|
|
1,646
|
|
|
|
1,407
|
|
- Others
|
|
|
2,127
|
|
|
|
3,501
|
|
|
|
|
|
|
|
|
|
|
Total net revenues
|
|
|
31,983
|
|
|
|
35,878
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
Cost of services and others
|
|
|
(11,963
|
)
|
|
|
(16,339
|
)
|
Cost of tangible goods sold
|
|
|
(847
|
)
|
|
|
(2,042
|
)
|
|
|
|
|
|
|
|
|
|
Total cost of sales
|
|
|
(12,810
|
)
|
|
|
(18,381
|
)
|
Gross profit
|
|
|
19,173
|
|
|
|
17,497
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Selling expenses
|
|
|
(7,185
|
)
|
|
|
(9,121
|
)
|
General and administrative expenses
|
|
|
(4,530
|
)
|
|
|
(4,996
|
)
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
(11,715
|
)
|
|
|
(14,117
|
)
|
Other operating income
|
|
|
499
|
|
|
|
1,729
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
7,957
|
|
|
|
5,109
|
|
Interest income
|
|
|
230
|
|
|
|
457
|
|
Interest expense
|
|
|
(119
|
)
|
|
|
(748
|
)
|
Exchange gain (loss)
|
|
|
3,907
|
|
|
|
(1,899
|
)
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
11,975
|
|
|
|
2,919
|
|
Income tax expense
|
|
|
(2,394
|
)
|
|
|
(671
|
)
|
Loss from equity method investment
|
|
|
(44
|
)
|
|
|
(29
|
)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
9,537
|
|
|
|
2,219
|
|
Net income attributable to noncontrolling interest
|
|
|
(982
|
)
|
|
|
(2,125
|
)
|
|
|
|
|
|
|
|
|
|
Net income attributable to China Distance Education Holdings Limited
|
|
|
8,555
|
|
|
|
94
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
Net income attributable to China Distance Education Holdings Limited shareholders
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.065
|
|
|
|
0.001
|
|
Diluted
|
|
|
0.065
|
|
|
|
0.001
|
|
Net income per ADS:
|
|
|
|
|
|
|
|
|
Net income attributable to China Distance Education Holdings Limited shareholders
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.260
|
|
|
|
0.003
|
|
Diluted
|
|
|
0.259
|
|
|
|
0.003
|
|
Weighted average shares used in calculating net income per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
131,303,833
|
|
|
|
131,667,052
|
|
Diluted
|
|
|
131,646,433
|
|
|
|
132,338,042
|
|
12
China Distance Education Holdings Limited
Reconciliations of
non-GAAP
measures to comparable GAAP measures
(In thousands of US Dollars, except number of shares, per share and per ADS data)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
2016
|
|
|
2017
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Cost of sales
|
|
|
12,810
|
|
|
|
18,381
|
|
Share-based compensation expense in cost of sales
|
|
|
40
|
|
|
|
45
|
|
Non-GAAP
cost of sales
|
|
|
12,770
|
|
|
|
18,336
|
|
Selling expenses
|
|
|
7,185
|
|
|
|
9,121
|
|
Share-based compensation expense in selling expenses
|
|
|
21
|
|
|
|
20
|
|
Non-GAAP
selling expenses
|
|
|
7,164
|
|
|
|
9,101
|
|
General and administrative expenses
|
|
|
4,530
|
|
|
|
4,996
|
|
Share-based compensation expense in general and administrative expenses
|
|
|
437
|
|
|
|
438
|
|
Non-GAAP
general and administrative expenses
|
|
|
4,093
|
|
|
|
4,558
|
|
Gross profit
|
|
|
19,173
|
|
|
|
17,497
|
|
Share-based compensation expenses
|
|
|
40
|
|
|
|
45
|
|
Non-GAAP
gross profit
|
|
|
19,213
|
|
|
|
17,542
|
|
Gross profit margin
|
|
|
59.9
|
%
|
|
|
48.8
|
%
|
Non-GAAP
gross profit margin
|
|
|
60.1
|
%
|
|
|
48.9
|
%
|
Operating income
|
|
|
7,957
|
|
|
|
5,109
|
|
Share-based compensation expenses
|
|
|
498
|
|
|
|
503
|
|
Non-GAAP
operating income
|
|
|
8,455
|
|
|
|
5,612
|
|
Operating margin
|
|
|
24.9
|
%
|
|
|
14.2
|
%
|
Non-GAAP
operating margin
|
|
|
26.4
|
%
|
|
|
15.6
|
%
|
Net income
|
|
|
8,555
|
|
|
|
94
|
|
Share-based compensation expense
|
|
|
498
|
|
|
|
503
|
|
Non-GAAP
net income
|
|
|
9,053
|
|
|
|
597
|
|
|
|
|
|
|
|
|
Net income margin
|
|
|
26.7
|
%
|
|
|
0.3
|
%
|
Non-GAAP
net income margin
|
|
|
28.3
|
%
|
|
|
1.7
|
%
|
Net income per sharebasic
|
|
|
0.065
|
|
|
|
0.001
|
|
Net income per sharediluted
|
|
|
0.065
|
|
|
|
0.001
|
|
Non-GAAP
net income per sharebasic
|
|
|
0.069
|
|
|
|
0.005
|
|
Non-GAAP
net income per sharediluted
|
|
|
0.069
|
|
|
|
0.005
|
|
Net income per ADS attributable to China Distance Education Holdings Limited
shareholdersbasic (note 1)
|
|
|
0.260
|
|
|
|
0.003
|
|
Net income per ADS attributable to China Distance Education Holdings Limited
shareholdersdiluted (note 1)
|
|
|
0.259
|
|
|
|
0.003
|
|
Non-GAAP
net income per ADS attributable to China Distance
Education Holdings Limited shareholdersbasic (note 1)
|
|
|
0.276
|
|
|
|
0.018
|
|
Non-GAAP
net income per ADS attributable to China Distance
Education Holdings Limited shareholdersdiluted (note 1)
|
|
|
0.275
|
|
|
|
0.018
|
|
Weighted average shares used in calculating basic net income per share
|
|
|
131,303,833
|
|
|
|
131,667,052
|
|
Weighted average shares used in calculating diluted net income per share
|
|
|
131,646,433
|
|
|
|
132,338,042
|
|
Weighted average shares used in calculating basic
non-GAAP
net income per share
|
|
|
131,303,833
|
|
|
|
131,667,052
|
|
Weighted average shares used in calculating diluted
non-GAAP
net income per share
|
|
|
131,646,433
|
|
|
|
132,338,042
|
|
Note 1: Each ADS represents four ordinary shares
13