BEIJING, Nov. 19, 2019
/PRNewswire/ -- RYB Education, Inc. ("RYB" or the
"Company") (NYSE: RYB), a leading early childhood education service
provider in China, today announced
its unaudited financial results for the third quarter ended
September 30, 2019.
Third Quarter 2019 Operational and
Financial Summary
- Number of students enrolled at directly operated facilities was
30,184 as of September 30, 2019,
compared with 23,010 as of September
30, 2018.
- Net revenues increased by 24.0% to $43.7
million, compared with $35.3
million for the third quarter of 2018.
- Gross profit was $3.1 million,
compared with $1.2 million for the
third quarter of 2018.
- Net loss attributable to ordinary shareholders of RYB for the
third quarter of 2019 was $3.3 million, compared with $4.3 million for the third quarter of 2018.
Adjusted net loss attributable to ordinary
shareholders[1] of RYB for the third quarter of 2019 was
$2.5 million, compared with
$1.9 million for the third quarter of
2018.
- Cash generated from operating activities was $12.0 million in the third quarter of 2019,
compared to $14.7 million for the
third quarter of 2018.
First Nine Months of 2019 Financial Highlights
- Net revenues were $131.5 million,
compared with $111.5 million for the
first nine months of 2018.
- Gross profit was $16.9 million,
compared with $17.7 million for the
first nine months of 2018.
- Net loss attributable to ordinary shareholders of RYB for the
first nine months of 2019 was $2.7
million, compared with $2.3
million for the same period last year. Adjusted net income
attributable to ordinary shareholders of RYB for the first nine
months of 2019 was $0.2 million,
compared with $4.1 million for the
first nine months of 2018.
- Cash generated from operating activities was $22.3 million for the nine months of 2019,
compared with $9.4 million for the
first nine months of 2018.
"In the third quarter of 2019, amidst the evolving macroeconomic
conditions, we are cognizant of changes in the early childhood
education market in China.
Nevertheless, we continued to pursue our strategic focus of
balanced growth during this quarter by making improvements to our
existing operations as well as developing additional original
curriculum, products and services. We believe firmly in our
continuous emphasis on providing quality education to families in
China and abroad, and the social
benefits and long-term value it brings. For this quarter, we are
also encouraged by innovations and enhancements made across aspects
of our existing platform, particularly the progress our team has
made in enhancing our internal operations management system and in
adding digital components to our educational products and services.
Following the Singapore
acquisition, we furthered our "multi-layered brand portfolio"
strategy to cater to a broader student and family base, and are
excited to see positive results of early integration as we have
introduced curriculum and brands to directly operated facilities in
China from our operations in
Singapore, which now serves as an
additional base for developing quality content and educational
practices. We look forward to more near and long-term benefits to
our students and families from the collective efforts of both teams
on curriculum, products, and services," said Ms. Yanlai Shi,
Co-founder, Director and Chief Executive Officer of RYB.
"As we continue to solidify our existing services and offerings,
our content development team continued to make positive
contributions to our various initiatives in new courses and
improved operations system. We received positive feedback from the
initial trial phases and expect good reception from parents and
business partners once those are launched to the market upon
completion. Although discretionary education spending has been
affected by softer macro-economic conditions, as a comprehensive
educational service provider, we are fully braced for the shifting
market conditions as we leverage technologies and adapt proactively
and remain committed to delivering differentiated and
age-appropriate educational solutions to nurture and inspire each
child and to serve families," concluded Ms. Shi.
Mr. Hao Gu, Chief Financial Officer of RYB, said, "In third
quarter which is a typical low season for our business, our net
revenues reached $43.7 million,
growing 24.0% year-over-year thanks to the solid performance at our
directly operated facilities, as we recorded a healthy enrollment
increase of 31.2% compared with the third quarter last year.
Despite the robust performance of our kindergartens, our net
revenues were slightly below our guidance range, due to softer than
expected result from our play-and-learn center franchise
operations. In response, we are in the process of upgrading and
diversifying our course offerings available to the market and help
our franchisees to improve operations and stimulate sales.
"As we execute our growth strategies consistently, our gross
margin and operating margin reached 7.1% and negative 10.2% during
the quarter, improved from 3.5% and negative 14.9% respectively
from the same period a year ago. Looking ahead, we will continue to
strike a balance between stable growth and improved profitability,
by practicing disciplined cost management while still making sound
investments that will lead the way to our long-term vision,"
concluded Mr. Gu.
Third Quarter 2019 Financial Results
Net Revenues
Net revenues for the third quarter of 2019 increased by 24.0% to
$43.7 million from $35.3 million for the same quarter of 2018.
Service revenues for the third quarter of 2019 increased by
26.8% to $39.5 million from
$31.2 million for the same quarter of
2018. The increase was primarily contributed by increased tuition
fees owing to a student-mix shift and an increase in the number of
students enrolled at directly operated facilities. The increase in
student enrollment was mainly driven by the higher utilization
rates at ramping facilities and contribution from directly operated
facilities in Singapore, which
were acquired during last quarter.
Product revenues for the third quarter of 2019 increased by 2.8%
to $4.2 million from $4.1 million for the same quarter of 2018. The
increase was primarily due to an increase in the average selling
price of products related to courses offered by the Company.
Cost of Revenues
Cost of revenues for the third quarter of 2019 was $40.6 million, representing a 19.3% increase from
$34.0 million for the same quarter in
2018. Cost of revenues for services for the third quarter of 2019
was $38.5 million, compared with
$31.9 million for the same
quarter of 2018. The increase was primarily due to an increase in
staff compensation at the Company's directly operated facilities
and direct operating cost as the Company's facilities network
expanded. Cost of products revenues for the third quarter of
2019 was $2.1 million, which remained
flat compared with $2.2 million for
the same quarter of 2018.
Gross Profit and Gross Margin
Gross profit for the third quarter of 2019 increased by 155.6%
to $3.1 million, compared with
$1.2 million for the same quarter of
2018.
Gross margin for the third quarter of 2019 was 7.1%, compared
with 3.5% for the same quarter last year. The increase in gross
margin was primarily due to higher utilization rate at directly
operated facilities, increased average tuition fees from a
student-mix shift and increased average selling price of
courses-related products offered by the Company.
Operating Expenses
Total operating expenses for the third quarter of 2019 were
$7.6 million, compared with
$6.5 million for the same quarter of
2018. Excluding share-based compensation expenses, operating
expenses were $6.8 million, an
increase of 37.3% from $4.9 million
for the third quarter of 2018.
Selling expenses for the third quarter of 2019 were $0.8 million, compared with $0.8 million for the same quarter of 2018.
General and administrative ("G&A") expenses for the third
quarter of 2019 were $6.7 million, compared with $5.6 million for the same quarter of 2018.
Excluding share-based compensation expenses, G&A expenses were
$5.9 million for the third
quarter of 2019, representing a 45.0% increase from $4.1 million for the same quarter of 2018.
The increase in G&A expenses excluding share-based compensation
expenses was primarily due to higher payroll expenses and
additional expenses related to our Singapore business, which were acquired during
the previous quarter by the Company. The share-based compensation
expenses included in G&A expenses were $0.8 million for the quarter.
Operating loss
Operating loss for the third quarter of 2019 was $4.4 million, compared with $5.3 million of operating loss for the same
quarter last year. Adjusted operating loss[2] was
$3.7 million for the third
quarter of 2019, compared with $3.7
million of operating loss for the same quarter of 2018.
Net loss
Net loss attributable to ordinary shareholders of RYB for
the third quarter of 2019 was $3.3
million, compared with $4.3
million for the same quarter of 2018. Adjusted net loss
attributable to ordinary shareholders of RYB, which excludes the
impact of $0.8 million of share-based
compensation expense for the third quarter of 2019, was
$2.5 million, compared with
$1.9 million for the same quarter of
2018.
Basic and diluted net losses per American depositary share
("ADS") attributable to ordinary shareholders of RYB for the third
quarter of 2019 were $0.12 and
$0.12, compared with $0.15 and $0.15,
respectively, for the same quarter of 2018. Each ADS represents one
Class A ordinary share.
Adjusted basic and diluted net losses per ADS attributable to
ordinary shareholders[3] of RYB for the third quarter of
2019 were $0.09 and $0.09, compared with $0.06 and $0.06,
respectively, for the same quarter of 2018.
EBITDA[4] for the third quarter of 2019 was a loss of
$1.3 million, compared with a loss of
$2.0 million for the same period of
2018. Adjusted EBITDA[5] for the third quarter of 2019
was a loss of $0.5 million, compared
with a loss of $0.4 million for the
same quarter of 2018.
Balance Sheet
As of September 30, 2019, the
Company had total cash and cash equivalents of $80.1 million, compared with $104.1 million as of December 31, 2018. The decrease in cash balance
was mainly due to payment for acquisition and other investments
activities as well as share repurchase executed in the first half
of 2019.
[1]
|
Adjusted net income
(loss) attributable to ordinary shareholders is a non-GAAP
financial measure, which is defined as net income (loss)
attributable to ordinary shareholders excluding share-based
compensation expenses and changes of redeemable non-controlling
interests. See "Use of Non-GAAP Financial Measures" and
"Reconciliations of GAAP and non-GAAP results" included elsewhere
in this earnings release.
|
[2]
|
Adjusted operating
loss is a non-GAAP financial measure, which is defined as operating
income excluding share-based compensation expenses. See "Use of
Non-GAAP Financial Measures" and "Reconciliations of GAAP and
non-GAAP results" elsewhere in this earnings release.
|
[3]
|
Adjusted basic and
diluted net income per ADS attributable to ordinary shareholders is
a non-GAAP financial measure, which is defined as basic and diluted
net income per ADS attributable to ordinary shareholders excluding
share-based compensation expenses. See "Use of Non-GAAP Financial
Measures" and "Reconciliations of GAAP and non-GAAP results"
elsewhere in this earnings release.
|
[4]
|
EBITDA is defined as net income
excluding depreciation, amortization and income tax expenses. See
"Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP
and non-GAAP results" included elsewhere in this earnings
release.
|
[5]
|
Adjusted EBITDA is a
non-GAAP financial measure, which is defined as net income
excluding depreciation, amortization, income tax expenses, and
share-based compensation expenses. See "Use of Non-GAAP Financial
Measures" and "Reconciliations of GAAP and non-GAAP results"
included elsewhere in this earnings release.
|
Operating Cash Flow
Cash generated from operating activities were $12.0 million during the third quarter of 2019,
compared with $14.7 million from
operating activities during the third quarter of 2018.
First Nine Months of 2019 Financial Results
Net Revenues
Net revenues for the first nine months of 2019 were $131.5 million, compared with $111.5 million for the first nine months of
2018.
Services revenues for the first nine months of 2019 were
$119.5 million, compared with
$100.8 million for the same period
last year. The increase was primarily contributed by increased
tuition fees owing to a student-mix shift, enrollment increase at
directly operated ramping facilities and contribution from acquired
facilities in Singapore. The
increase in tuition fees revenue was partially offset by the
decrease in the franchise services revenue, as the franchise
services revenue in the second quarter of 2018 was relatively
higher due to the recording of an accounting estimate change.
Products revenues for the first nine months of 2019 were
$12.0 million, compared with
$10.7 million for the same period in
2018. The increase was primarily contributed from an increase in
the amount of merchandise sold through the Company's franchise
network as well as an increase in the average selling price of
products related to courses offered by the Company.
Cost of Revenues
Cost of revenues for the first nine months of 2019 was
$114.7 million, compared with
$93.8 million for the first nine
months of 2018. Cost of services revenues for the first nine months
of 2019 was $108.6 million, compared
with $88.0 million for the same
period in 2018. The increase was primarily due to an increase in
staff compensation at the Company's directly operated facilities
and higher direct operating cost, as the Company continued to
moderately expand its facility network. Cost of products revenues
for the first nine months of 2019 was $6.1
million, compared with $5.8
million for the same period last year. The increase was in
line with the increase in product revenue.
Gross Profit and Gross Margin
Gross profit for the first nine months of 2019 was $16.9 million, compared with $17.7 million for the first nine months of
2018.
Gross margin for the first nine months of 2019 was 12.8%,
compared with 15.9% for the same period last year.
Operating Expenses
Total operating expenses for the first nine months of 2019 were
$20.0 million, compared with
$20.6 million for the same period
last year. Excluding share-based compensation
expenses, operating expenses were $17.1
million for the first nine months of 2019.
Selling expenses were $2.1 million
for the first nine months of 2019, compared with $1.5 million for the same period last year.
G&A expenses for the first nine months of 2019 were
$17.9 million, compared with
$19.1 million for the same period
last year. Excluding share-based compensation expenses, G&A
expenses were $14.9 million for the
first nine months of 2019, an 8.9% increase from $13.7 million for the same period of 2018.
Operating Income/loss
Operating loss for the first nine months of 2019 was
$3.2 million, compared with
$2.9 million for the same period last
year. Adjusted operating loss for the first nine months of
2019 was $0.1 million, compared with
adjusted operating income of $2.6
million for the same period last year.
Net Income/loss
Net loss attributable to ordinary shareholders of RYB for
the first nine months of 2019 was $2.7
million, compared with $2.3
million for the same period last year. Adjusted net
income attributable to ordinary shareholders of RYB, which excludes
the impact of share-based compensation expenses, for the first nine
months of 2019 was $0.2 million,
compared with $4.1 million for the
same period last year.
Basic and diluted net losses per ADS attributable to ordinary
shareholders of RYB for the first nine months of 2019 were
$0.09 and $0.09, compared with $0.08 and $0.08,
respectively, for the same period last year. Each ADS
represents one Class A ordinary share.
Adjusted basic and diluted net income per ADS attributable to
ordinary shareholders of RYB for the first nine months of 2019 were
$0.01 and $0.01, respectively, compared with $0.14 and $0.13,
respectively, for the same period last year.
EBITDA for the first nine months of 2019 was $6.2 million, compared with $5.3 million for the same period last year.
Adjusted EBITDA for the first nine months of 2019 was $9.3 million, compared with $10.8 million for the same period last year.
Outlook
For the fourth quarter of 2019, the Company's management
currently expects:
- Net revenues to be between $49.0
million and $51.0 million,
representing a year-over-year increase of approximately 9% to
13%.
The above outlook is based on the current market conditions and
reflects the Company management's current and preliminary estimates
of market and operating conditions and customer demand, which are
all subject to change.
Conference Call
Management will hold a conference call at 8:00 a.m. Eastern Time on Wednesday, November 20,
2019 (9:00 p.m. Beijing Time on
November 20, 2019) to discuss
financial results and answer questions from investor and analysts.
Listeners may access the call by dialing:
United States (toll
free):
|
1-888-317-6003
|
International:
|
1-412-317-6061
|
Mainland China (toll
free):
|
400-120-6115
|
Hong Kong (toll
free):
|
800-963-976
|
Participant Elite
Entry Number:
|
3800477
|
Participants should dial-in at least 10-15 minutes before the
scheduled start time and ask to be connected to the RYB Education,
Inc. conference call.
A telephone replay will be available approximately one hour
after the call until November 27,
2019 by dialing:
United States (toll
free):
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Replay Access
Code:
|
10136902
|
Additionally, a live and archived webcast of the conference call
will be available at http://ir.rybbaby.com.
About RYB Education, Inc.
Founded on the core values of ''Care'' and ''Responsibility,''
"Inspire" and "Innovate," RYB Education, Inc. is a leading early
childhood education service provider in China. Since opening
its first play-and-learn center in 1998, the Company has grown and
flourished with the mission to provide high-quality, individualized
and age-appropriate care and education to nurture and inspire each
child for his or her betterment in life. During its two decades of
operating history, the Company has built "RYB" into a
well-recognized education brand and helped bring about many new
educational practices in China's early childhood
education industry. RYB's comprehensive early childhood education
solutions meet the needs of children from infancy to 6 years old
through structured courses at kindergartens and play-and-learn
centers, as well as at-home educational products and services.
For more information, please visit http://ir.rybbaby.com
Use of Non-GAAP Financial Measures
We use EBITDA, adjusted EBITDA, adjusted operating income,
adjusted net income, and adjusted basic and diluted net income per
ADS, each a non-GAAP financial measure, in evaluating our operating
results and for financial and operational decision-making
purposes.
EBITDA is defined as net income excluding depreciation,
amortization, and income tax expenses; adjusted EBITDA is defined
as net income excluding depreciation, amortization, income tax
expenses, and share-based compensation expenses; adjusted operating
income is defined as operating income excluding share-based
compensation expenses; adjusted net income attributable to ordinary
shareholders is defined as net income attributable to
ordinary shareholders excluding share-based compensation expenses
and changes of redeemable non-controlling interests; and adjusted
basic and diluted net income per ADS attributable to ordinary
shareholders are defined as basic and diluted net income per ADS
attributable to ordinary shareholders excluding share-based
compensation expenses and changes of redeemable non-controlling
interests.
We believe that EBITDA, adjusted EBITDA, adjusted operating
income, adjusted net income, and adjusted basic and diluted net
income per ADS, help identify underlying trends in our business
that could otherwise be distorted by the effect of certain expenses
that we include in income from operations and net income. We
believe that EBITDA, adjusted EBITDA, adjusted operating income,
adjusted net income, and adjusted basic and diluted net income per
ADS, provide useful information about our operating results,
enhance the overall understanding of our past performance and
future prospects and allow for greater visibility with respect to
key metrics used by our management in its financial and operational
decision-making.
EBITDA, adjusted EBITDA, adjusted operating income, adjusted net
income, and adjusted basic and diluted net income per ADS, should
not be considered in isolation or construed as an alternative to
net income or any other measure of performance or as an indicator
of our operating performance. Investors are encouraged to review
the historical adjusted financial measures to the most directly
comparable GAAP measures. EBITDA, adjusted EBITDA, adjusted
operating income, adjusted net income, and adjusted basic and
diluted net income per ADS, presented here may not be comparable to
similarly titled measures presented by other companies. Other
companies may calculate similarly titled measures differently,
limiting their usefulness as comparative measures to our data. We
encourage investors and others to review our financial information
in its entirety and not rely on a single financial measure.
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," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements.
Statements that are not historical facts, including statements
about the Company's 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: the
Company's brand recognition and market reputation; student
enrollment in the Company's teaching facilities; the Company's
growth strategies; its future business development, results of
operations and financial condition; trends and competition in
China's early childhood education
market; changes in its revenues and certain cost or expense items;
the expected growth of the Chinese early childhood education
market; Chinese governmental policies relating to the Company's
industry and general economic conditions in China. Further information regarding these and
other risks is included in the Company's filings with the SEC. All
information provided in this press release and in the attachments
is as of the date of this press release, and the Company undertakes
no obligation to update any forward-looking statement, except as
required under applicable law.
For investor and media inquiries, please contact:
In China:
RYB
Education, Inc.
Investor Relations
Tel: 86-10-8767-5752
E-mail: ir@rybbaby.com
The Piacente Group, Inc.
Ross Warner
Tel: +86 (10) 5730-6200
E-mail: ryb@tpg-ir.com
In the United
States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: ryb@tpg-ir.com
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands of
U.S. dollars)
|
|
|
|
|
As
of
|
|
September
30,
2019
|
December
31,
2018
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
80,072
|
104,084
|
Accounts receivable,
net
|
2,778
|
876
|
Inventories
|
7,389
|
4,811
|
Prepaid expenses and
other current assets
|
15,232
|
11,243
|
Loan
receivables-current
|
1,119
|
582
|
Total current
assets
|
106,590
|
121,596
|
|
|
|
Non-current
assets:
|
|
|
Restricted
cash
|
734
|
746
|
Property, plant and
equipment, net
|
47,723
|
45,896
|
Acquired intangible
assets
|
17,892
|
4,491
|
Goodwill
|
50,931
|
25,096
|
Long-term
investments
|
4,832
|
4,805
|
Deferred tax
assets
|
18,742
|
16,195
|
Other non-current
assets
|
13,982
|
24,048
|
Operating lease
right-of-use assets
Loan receivables –
non-current
|
84,770
-
|
-
582
|
Total
assets
|
346,196
|
243,455
|
|
|
|
Liabilities
|
|
|
Current
liabilities:
|
|
|
Prepayments from
customers, current portion (including
prepayments from customers of the consolidated VIEs without
recourse to the Group of $5,499 and $6,647 as of September 30,
2019 and December 31, 2018, respectively)
|
6,639
|
6,647
|
Accrued expenses and
other current liabilities (including accrued
expenses and other current liabilities of the consolidated VIEs
without recourse to the Group of $49,598 and $54,443 as of S
eptember 30, 2019 and December 31, 2018, respectively)
|
56,914
|
60,429
|
Income taxes payable
(including income taxes payable of the
consolidated VIEs without recourse to the Group of $12,668
and
$11,298 as of September 30, 2019 and December 31, 2018,
respectively)
|
12,823
|
11,685
|
Deferred revenue,
current portion (including deferred revenue of t
he consolidated VIEs without recourse to the Group of
$43,536
and $29,578 as of September 30, 2019 and December 31, 2018,
respectively)
|
44,156
|
29,578
|
Operating lease
liabilities, current portion (including operating
lease liabilities of the consolidated VIEs without recourse to
the
Group of $13,144 and nil as of September 30, 2019 and
December 31, 2018, respectively)
|
16,417
|
-
|
Long-term debt,
current portion (including long-term debt of the
consolidated VIEs without recourse to the Group of nil and nil
as
of September 30, 2019 and December 31, 2018,
respectively)
|
78
|
-
|
Total current
liabilities
|
137,027
|
108,339
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
Prepayments from
customers, non-current portion (including
prepayments from customers of the consolidated
VIEs without
recourse to the Group of $1,999 and $3,582 as of September 30,
2019 and December 31, 2018, respectively)
|
1,999
|
3,582
|
Deferred revenue,
non-current portion (including deferred
revenue of the consolidated VIEs without recourse to the
Group
of $6,825 and $5,567 as of September 30, 2019 and December 31,
2018, respectively)
|
8,118
|
6,915
|
Other non-current
liabilities (including other non-current
liabilities of the consolidated VIEs without recourse to the
Group
of $8,727 and $8,541 as of September 30, 2019 and December 31,
2018, respectively)
|
10,465
|
8,541
|
Deferred income tax
liabilities (including deferred income tax
liabilities of the consolidated VIEs without recourse to the
Group
of $1,333 and $1,110 as of September 30, 2019 and December 31,
2018, respectively)
|
3,460
|
1,110
|
Operating lease
liabilities, non-current portion (including
operating lease liabilities of the consolidated VIEs without
recourse to the Group of $70,489 and nil as of September 30,
2019 and December 31, 2018, respectively)
|
72,553
|
-
|
Long-term debt,
non-current portion (including long term debt of
the consolidated VIEs without recourse to the Group of nil
and nil as of September 30, 2019 and December 31, 2018,
respectively)
|
26
|
-
|
Total
liabilities
|
233,648
|
128,487
|
|
|
|
Mezzanine
equity
Redeemable
non-controlling interests
|
8,419
|
1,628
|
|
|
|
Equity
|
|
|
Ordinary
shares
|
29
|
29
|
Treasury
stock
|
(12,000)
|
-
|
Additional paid-in
capital
|
138,932
|
135,881
|
Statutory
reserve
|
3,362
|
3,362
|
Accumulated other
comprehensive income
|
(1,968)
|
(122)
|
Accumulated
deficit
|
(33,086)
|
(30,421)
|
Total RYB
Education, Inc. shareholders' equity
|
95,269
|
108,729
|
Non-controlling
interest
|
8,860
|
4,611
|
Total
equity
|
104,129
|
113,340
|
Total liabilities,
mezzanine equity and total equity
|
346,196
|
243,455
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands of
U.S. dollars, except share, ADS, per share and per ADS
data)
|
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
2019
|
2018
|
2019
|
2018
|
Net
revenues:
|
|
|
|
|
Services
|
39,513
|
31,151
|
119,542
|
100,753
|
Products
|
4,220
|
4,106
|
12,006
|
10,741
|
Total net
revenues
|
43,733
|
35,257
|
131,548
|
111,494
|
Cost of
revenues:
|
|
|
|
|
Services
|
38,539
|
31,870
|
108,575
|
87,976
|
Products
|
2,073
|
2,166
|
6,082
|
5,784
|
Total cost of
revenues
|
40,612
|
34,036
|
114,657
|
93,760
|
Gross
profit
|
3,121
|
1,221
|
16,891
|
17,734
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
Expenses
|
845
|
844
|
2,128
|
1,537
|
General and
administrative
|
6,719
|
5,628
|
17,920
|
19,090
|
Total operating
expenses
|
7,564
|
6,472
|
20,048
|
20,627
|
|
|
|
|
|
Operating
loss
|
(4,443)
|
(5,251)
|
(3,157)
|
(2,893)
|
Interest
income
|
71
|
465
|
631
|
1,503
|
Government subsidy
income
|
170
|
94
|
390
|
384
|
Gain on disposal of
subsidiaries
|
-
|
-
|
697
|
1
|
Impairment loss on
intangible assets and goodwill
|
-
|
-
|
(416)
|
-
|
|
|
|
|
|
Loss before income
taxes
|
(4,202)
|
(4,692)
|
(1,855)
|
(1,005)
|
Less: Income tax
(benefits)/expenses
|
(828)
|
(843)
|
533
|
552
|
|
|
|
|
|
Loss before loss
in equity method investments
|
(3,374)
|
(3,849)
|
(2,388)
|
(1,557)
|
Loss from equity
method investment
|
(164)
|
(134)
|
(460)
|
(224)
|
|
|
|
|
|
Net
loss
|
(3,538)
|
(3,983)
|
(2,848)
|
(1,781)
|
Less: Net loss
attributable to non-
controlling interest
|
(279)
|
(524)
|
(40)
|
(319)
|
|
|
|
|
|
Less: Changes of
redeemable non-
controlling interests
|
-
|
885
|
(143)
|
885
|
|
|
|
|
|
Net loss
attributable to ordinary
shareholders of RYB Education, Inc.
|
(3,259)
|
(4,344)
|
(2,665)
|
(2,347)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to ordinary
shareholders of RYB Education, Inc.
|
|
|
|
|
Basic
|
(0.12)
|
(0.15)
|
(0.09)
|
(0.08)
|
Diluted
|
(0.12)
|
(0.15)
|
(0.09)
|
(0.08)
|
Net loss per ADS
attributable to ordinary
shareholders of RYB Education, Inc. (Note 1)
|
|
|
|
|
Basic
|
(0.12)
|
(0.15)
|
(0.09)
|
(0.08)
|
Diluted
|
(0.12)
|
(0.15)
|
(0.09)
|
(0.08)
|
|
|
|
|
|
Weighted average
shares used in calculating net income per ordinary share
|
Basic
|
27,586,346
|
29,406,801
|
28,169,690
|
29,324,087
|
Diluted
|
27,586,346
|
29,406,801
|
28,169,690
|
29,324,087
|
|
|
|
|
|
Net loss
|
(3,538)
|
(3,983)
|
(2,848)
|
(1,781)
|
Other comprehensive
loss, net of tax of nil:
|
|
|
|
|
Change in cumulative
foreign currency translation adjustments
|
(2,149)
|
(819)
|
(2,390)
|
(2,441)
|
Total
comprehensive loss
|
(5,687)
|
(4,802)
|
(5,238)
|
(4,222)
|
Less: Comprehensive
loss attributable to non-controlling interest
|
(861)
|
(544)
|
(585)
|
(601)
|
|
|
|
|
|
Comprehensive loss
attributable to RYB Education, Inc.
|
(4,826)
|
(4,258)
|
(4,653)
|
(3,621)
|
|
|
|
|
|
Note 1:Each ADS
represents one Class A ordinary share.
|
|
|
|
|
RECONCILIATION
OF GAAP and non-GAAP results
|
(in thousands of U.S. dollars,
except share, ADS, per share and per ADS data)
|
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
Operating
loss
|
(4,443)
|
(5,251)
|
(3,157)
|
(2,893)
|
Share-based
compensation expenses
|
790
|
1,562
|
3,051
|
5,536
|
Adjusted operating
loss
|
(3,653)
|
(3,689)
|
(106)
|
2,643
|
|
|
|
|
|
Net loss attributable
to ordinary
shareholders of RYB Education, Inc.
|
(3,259)
|
(4,344)
|
(2,665)
|
(2,347)
|
|
|
|
|
|
Share-based
compensation expenses
|
790
|
1,562
|
3,051
|
5,536
|
Changes of redeemable
non-controlling interests
|
-
|
885
|
(143)
|
885
|
Adjusted net
(loss)/income attributable to ordinary shareholders of RYB
Education, Inc.
|
(2,469)
|
(1,897)
|
243
|
4,074
|
|
|
|
|
|
Net loss
|
(3,538)
|
(3,983)
|
(2,848)
|
(1,781)
|
Add: Income tax
expense
|
(828)
|
(843)
|
533
|
552
|
Depreciation of
property, plant and equipment, and amortization of intangible
assets
|
3,068
|
2,864
|
8,536
|
6,530
|
EBITDA
|
(1,298)
|
(1,962)
|
6,221
|
5,301
|
Share-based
compensation expenses
|
790
|
1,562
|
3,051
|
5,536
|
Adjusted
EBITDA
|
(508)
|
(400)
|
9,272
|
10,837
|
|
|
|
|
|
Net loss per ADS
attributable to ordinary shareholders of RYB Education, Inc.- Basic
(Note1)
|
(0.12)
|
(0.15)
|
(0.09)
|
(0.08)
|
Net loss per ADS
attributable to ordinary shareholders of RYB Education, Inc.-
Diluted (Note1)
|
(0.12)
|
(0.15)
|
(0.09)
|
(0.08)
|
|
|
|
|
|
Adjusted net
(loss)/income per ADS attributable to ordinary shareholders of RYB
Education, Inc.- Basic (Note1)
|
(0.09)
|
(0.06)
|
0.01
|
0.14
|
Adjusted net
(loss)/income per ADS attributable to ordinary shareholders of RYB
Education, Inc.- Diluted (Note1)
|
(0.09)
|
(0.06)
|
0.01
|
0.13
|
|
|
|
|
|
Weighted average
shares used in calculating basic net loss/adjusted net
(loss)/income per ADS(Note1)
|
27,586,346
|
29,406,801
|
28,169,690
|
29,324,087
|
Weighted average
shares used in calculating diluted net loss per
ADS(Note1)
|
27,586,346
|
29,406,801
|
28,169,690
|
29,324,087
|
Weighted average
shares used in calculating diluted adjusted net (loss)/income per
ADS(Note1)
|
27,586,346
|
29,406,801
|
29,511,867
|
31,458,658
|
|
|
|
|
|
Adjusted net
(loss)/income per share- Basic
|
(0.09)
|
(0.06)
|
0.01
|
0.14
|
Adjusted net
(loss)/income per share- Diluted
|
(0.09)
|
(0.06)
|
0.01
|
0.13
|
|
|
|
|
|
Note 1:Each ADS
represents one Class A ordinary share.
|
View original
content:http://www.prnewswire.com/news-releases/ryb-education-inc-reports-third-quarter-2019-financial-results-300961524.html
SOURCE RYB Education, Inc.