— Second Quarter Net Revenues Increased by 53.4% Year-Over-Year, Exceeding Guidance
— Second Quarter Net Income Increased by 204.5% Year-Over-Year
— Non-GAAP Second Quarter Net Income Increased by 249.1% Year-Over-Year
BEIJING, August 20, 2014 /PRNewswire/ — Tarena International, Inc. (NASDAQ: TEDU) (“Tarena” or the “Company”), a leading provider of professional education services in China today announced its unaudited financial results for the second quarter ended June 30, 2014.
Second Quarter 2014 Highlights
- Net revenues increased by 53.4% year-over-year to US$31.9 million from US$20.8 million in the same period in 2013, exceeding the high end of the Company’s previous guidance of US$30.5 million to US$31.5 million.
- Gross profit increased by 60.0% year-over-year to US$22.7million from US$14.2 million in the same period in 2013. Gross margin increased to 71.2% as compared to 68.2% in the same period in 2013.
- Operating income increased by 95.4% year-over-year to US$3.6 million from US$1.9 million in the same period in 2013. Operating margin increased to 11.4% as compared to8.9% in the same period in 2013.
- Non-GAAP operating income, which excluded share-based compensation expenses, increased by 149.9% year-over-year to US$5.1 million from US$2.0 million in the same period in 2013. Non-GAAP operating margin increased to 15.9% as compared to 9.8% in the same period in 2013.
- Net income increased by 204.5% year-over-year to US$5.7 million from US$1.9 million in the same period in 2013.
- Non-GAAP net income, which excluded share-based compensation expenses, increased by 249.1% year-over-year to US$7.2 million from US$2.1 million in the same period in 2013.
- Cash, cash equivalents and time deposits totaled US$151.5 million as of June 30, 2014, compared to US$38.3 million as of December 31, 2013.
- Deferred revenue totaled US$20.0 million as of June 30, 2014, compared to US$15.5 million as of December 31, 2013.
- Total student enrollments in the second quarter of 2014 increased by 35.6% year-over-year to 15,377.
- Total number of learning centers increased to 103 as of June 30, 2014, from 97 as of March 31, 2014.
“I am delighted to report that we achieved an excellent quarter with record revenue and profit,” said Mr. Shaoyun Han, Tarena’s Chairman and Chief Executive Officer. “Revenue growth was again driven by increase in student enrollments and higher average revenue per student. Our digital art course continued its tremendous growth to remain as our second largest course by student enrollments in the second quarter of 2014. Our online sales and marketing course, which only launched in the fourth quarter of 2013, also experienced strong growth and has already become our fourth largest course, behind Java, digital art and C++. Such strong enrollment results further validated our differentiated education platform, as well as our strategy to diversify our course offerings and revenues by expanding into other high growth disciplines.”
“More importantly, we achieved significant year-over-year improvements in gross margin and operating margin and delivered even stronger growth in operating income. We will continue to execute on our objective and priority for 2014 in improving our center efficiency and utilization to drive sustainable growth in both revenue and profit, “continued Mr. Han.
“In the second quarter of 2014, the Chinese State Council issued ‘The Decision to Accelerate Modern Vocational Education’ in order to encourage the further development of the professional education market and to bridge the structural gap between the demand for and supply of skilled workforce. The number of college graduates in China has risen to a record high of 7.3 million in 2014 and the employment market is becoming increasingly competitive. As a leading professional education service provider with premium brand and reputation, Tarena is well positioned to capture the opportunities presented by this favorable market environment to drive our future growth.” Mr. Han concluded.
Mr. Suhai Ji, Tarena’s Chief Financial Officer, added, “In addition to our solid top line results, we are pleased to see continued strong margin improvement in the second quarter of 2014 as gross margin increased by 300 basis points year-over-year to 71.2%and non-GAAP operating margin increased by 610 basis points year-over-year to 15.9%. We are delivering on the objective we set at the beginning of the year to drive margin expansion in 2014. In the coming quarters, we will remain focused on optimizing our learning center utilization and improving key operating metrics to generate both growth and profitability.”
Second Quarter 2014 Results
Net Revenues
Net revenues increased by 53.4% to US$31.9 million in the second quarter of 2014, from US$20.8 million in the same period in 2013. The increase was primarily due to increased student enrollments and higher average revenue per student, as defined by net revenues divided by student enrollment.
Total student enrollments in the second quarter of 2014 increased by 35.6% to 15,377 from 11,341 in the same period in 2013, which was driven mainly by the number and the popularity of our course offerings. The number of our course offerings increased from 9to 11 in the second quarter year-over-year while the number of our learning centers increased from 76 to 103 in the same period year-over-year to cater to the increased demand for our courses.
Average revenue per student in the second quarter of 2014 increased by 13.1% to US$2,089 from US$1,847 in the same period in 2013. The growth in average revenue per student was mainly driven by the increase of standard tuition fees for our courses and the higher percentage of retail channel in our student enrollment channel mix. Beginning in the second quarter of 2014, we raised the standard tuition fees on some of our courses by RMB1,000 (US$163) per course. While we typically charge students enrolled through the retail channel the standard tuition fee, we generally offer students enrolled through the university channel a discount of approximately RMB4,000 (US$650) per person per course. Our student enrollment mix from retail and university channel was 81%/19% and 72%/28% in the second quarter of 2014 and 2013, respectively.
Cost of Revenues
Cost of revenues increased by 39.2% to US$9.2 million in the second quarter of 2014, from US$6.6 million in the same period in 2013. The increase was mainly due to higher rental cost resulting from increased number of learning centers and expansion of existing learning centers, higher personnel cost and welfare expenses resulting from increased number of teaching and advisory staff at our learning centers and higher average salary, as well as higher depreciation expenses for our learning centers.
Gross Profit and Gross Margin
Gross profit increased by 60.0% to US$22.7 million in the second quarter of 2014, from US$14.2 million in the same period in 2013. Gross margin increased to 71.2% in the second quarter of 2014 from 68.2% in the same period in 2013.The improvement in gross margin was mainly due to increased operational scale and efficiency for our learning centers. Personnel cost and welfare expenses decreased to 10.7% of total net revenues in the second quarter of 2014, from 12.9% in the same period in 2013. Rental expenses decreased to 8.8% of total net revenues in the second quarter of 2014, from 9.5% in the same period in 2013.
Operating Expenses
Total operating expenses increased by 54.6% to US$19.1 million in the second quarter of 2014, from US$12.4 million in the same period in 2013 as a result of increases in our selling and marketing, general and administrative and research and development expenses. Total non-GAAP operating expenses, which excluded share-based compensation expenses, increased by 45.1%to US$17.7 million in the second quarter of 2014, from US$12.2 million in the same period in 2013. Total share-based compensation expenses allocated to the related operating expenses increased by 728.9% to US$1.4 million in the second quarter of 2014, from US$0.2 million in the same period in 2013.
Selling and marketing expenses increased by 34.3% to US$10.3 million in the second quarter of 2014, from US$7.7 million in the same period in 2013. The increase was due to higher personnel cost and welfare expenses related to the growth in our selling and marketing headcount and higher average salary, and expanded marketing efforts primarily as a result of increased spending on advertising as we expanded our network of learning centers. Selling and marketing expenses in the second quarter of 2014 accounted for 32.2% of the total net revenues, compared to 36.8% in the same period in 2013.Advertising and marketing expenses in the second quarter of 2014 accounted for 13.1% of the total net revenues, compared to 16.7% in the same period in 2013.
General and administrative expenses increased by 101.8% to US$7.4 million in the second quarter of 2014, from US$3.7 million in the same period in 2013. The increase was mainly due to higher compensation cost for our increased number of general and administrative personnel to support our growing operations, higher bad debt allowance, higher share-based compensation expenses, and to a lesser extent, higher professional expenses. General and administrative expenses in the second quarter of 2014 accounted for 23.3% of the total net revenues, compared to17.7% in the same period in 2013. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 74.1% to US$6.2 million, from US$3.5 million in the same period in 2013. Non-GAAP general and administrative expenses in the second quarter of 2014 accounted for 19.3% of total net revenues, compared to 17.0% in the same period in 2013.
Research and development expenses increased by 37.1% to US$1.4 million in the second quarter of 2014, from US$1.0 million in the same period in 2013. The increase was mainly due to higher personnel cost and welfare expenses of our instructors allocated to their content development activities for our courses. Research and development expenses in the second quarter of 2014 accounted for 4.3% of total net revenues, compared to 4.8% in the same period in 2013.
Operating Income
Operating income increased by 95.4% to US$3.6 million in the second quarter of 2014, from US$1.9 million in the same period in 2013. Operating margin increased to 11.4%in the second quarter of 2014 as compared to8.9% in the same period in 2013.Non-GAAP operating income, which excluded share-based compensation expenses, increased by 149.9% to US$5.1 million in the second quarter of 2014, from US$2.0 million in the same period in 2013. Non-GAAP operating margin increased to 15.9% in the second quarter of 2014 as compared to 9.8% in the same period in 2013.
Interest Income, Net
Net interest income was US$1.0 million in the second quarter of 2014, compared to US$0.5 million in the same period in 2013. Interest income in both periods consisted of interest earned on our cash and time deposits in commercial banks and interest income recognized in relation to our installment payment plan for students. The increase in net interest income was primarily due to higher deposit levels resulting from the Company’s IPO proceeds in April 2014.
Foreign Exchange Gain/Loss
Foreign exchange gain was US$0.8 million in the second quarter of 2014, compared with a loss of US$0.1 million in the same period in 2013. The increase was primarily attributable to the appreciation of China’s RMB against U.S. dollar when a significant portion of the Company’s IPO proceeds was converted into RMB and placed in bank deposits.
Other Income
Other income in the second quarter of 2014 was US$1.0 million, consisting of US$0.8 million in government grant and US$0.2 million in investment income, compared to almost nil in the same period in 2013. The increase was attributable to government grants of RMB5 million received in the second quarter of 2014 and the investment income of short-term wealth management products purchased in the second quarter of 2014.
Income Tax Expense
Income tax expense was US$0.7 million in the second quarter of 2014, compared to US$0.4 million in the same period in 2013.The increase was mainly due to higher taxable income, partially offset by a decrease in the effective income tax rate to 10.5% in the second quarter of 2014 from 17.8% in the same period in 2013.The decrease in the effective income tax rate was primarily due to a tax holiday of a two-year full exemption from 2014 to 2015 followed by a three-year 50% exemption from 2016 to 2018 entitled by one of our wholly owned subsidiaries which is qualified as a “Newly Established Software Enterprise” under the PRC Enterprise Income Tax Law.
Net Income
As a result of the foregoing, net income increased by 204.5% to US$5.7 million in the second quarter of 2014, from US$1.9 million in the same period in 2013. Non-GAAP net income, which excluded share-based compensation expenses, increased by 249.1% year-over-year to US$7.2 million from US$2.1 million in the same period in 2013.
Business Outlook
Based on the Company’s current estimates, total net revenues for the third quarter of 2014 are expected to be between US$38.5 million and US$39.5 million, representing an increase of 35.1% to 38.6% on a year-over-year basis. The Company also expects its total net revenues for the full year of 2014 to be between US$134.5 million and US$136.0 million, representing an increase of 44.9% to 46.6% on a year-over-year basis.
This guidance is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions, which are subject to change.
Conference Call
The Company will host a conference call and live webcast to discuss its financial results for the second quarter of 2014 ended June 30, 2014 at 9:00 p.m. Eastern Time on August 19, 2014 (9:00 a.m. Beijing time on August 20, 2014).
The dial-in details for the live conference call are as follows:
United States:
|
855 298 3404
|
International:
|
+1 631 514 2526
|
Hong Kong:
|
800 905 927
|
United Kingdom:
|
800 015 9725
|
China Mainland:
|
400 120 0539
|
Conference ID:
|
1002021
|
A replay of the call will be available approximately 2 hours after the conclusion of the conference call through August 26, 2014. The dial-in details for the replay are:
U.S. Toll Free:
|
866 846 0868
|
International:
|
+1 800 008 585
|
Conference ID:
|
1002021
|
Additionally, a live and archived webcast of this call will be available on the Investor Relations section of Tarena’s website at http://ir.tarena.com.cn.
Safe Harbor Statement
This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and 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. Tarena may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including the business outlook for the second quarter of 2014 and statements about Tarena’s beliefs and expectations, are forward-looking statements. Many factors, risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Tarena’s goals and strategies; its future business development, financial condition and results of operations; its ability to continue to attract students to enroll in its courses; its ability to continue to recruit, train and retain qualified instructors and teaching assistants; its ability to continually tailor its curriculum to market demand and enhance its courses to adequately and promptly respond to developments in the professional job market; its ability to maintain or enhance its brand recognition, its ability to maintain high job placement rate for its students, and its ability to maintain cooperative relationships with financing service providers for student loans. Further information regarding these and other risks, uncertainties or factors is included in Tarena’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tarena does not undertake any obligation to update such information, except as required under applicable law.
About Tarena International, Inc.
Tarena International, Inc. (Nasdaq: TEDU) is a leading provider of professional education services in China. The Company is the largest provider of IT professional education services in China with a market share of 8.3% as measured by revenues in 2013 according to IDC, a third-party research firm. Through its innovative education platform combining live distance instruction, classroom-based tutoring and online learning modules, Tarena offers courses in nine IT subjects and two non-IT subjects. Its courses provide students with practical education to prepare them for jobs in industries with significant growth potential and strong hiring demand. Since its inception in 2002, Tarena has trained over 155,000 students, cooperated with more than 500 universities and colleges and placed students with approximately 45,000 corporate employers in a variety of industries. For further information, please visit http://ir.tarena.com.cn.
About Non-GAAP Financial Measures
To supplement Tarena’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Tarena’s management uses non-GAAP measures of cost of revenues, operating expenses, operating income, net income, and net income per share, which are adjusted from results based on GAAP to exclude the share-based compensation expenses.
Our non-GAAP financial information provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. These non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. In addition, calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
A limitation of using non-GAAP cost of revenues, operating expenses, operating income and net income is that the share-based compensation charge has been and will continue to be a significant recurring expense in the Company’s business for the foreseeable future. In order to mitigate these limitations the Company has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.
For further information, please contact:
Christina Zhu
Investor Relations
Tarena International Inc.
Tel: +8610 56219451
Email: ir@tarena.com.cn
TARENA INTERNATIONAL, INC. AND SUBSIDIARIES
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
As of
|
|
|
June 30
|
|
|
December 31
|
|
|
2014
|
|
|
2013
|
|
|
US$
|
|
|
US$
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
49,609,069
|
|
|
26,139,255
|
Time deposits
|
|
|
92,101,664
|
|
|
————
|
Accounts receivable, net of allowance for doubtful accounts
|
|
|
18,946,361
|
|
|
15,001,222
|
Prepaid expenses and other current assets
|
|
|
6,018,695
|
|
|
3,497,332
|
Deferred income tax assets
|
|
|
1,565,763
|
|
|
1,546,213
|
Total current assets
|
|
|
168,241,552
|
|
|
46,184,022
|
Time deposits
|
|
|
9,769,175
|
|
|
12,161,617
|
Accounts receivable, net of allowance for doubtful accounts
|
|
|
640,752
|
|
|
415,881
|
Property and equipment, net
|
|
|
13,156,747
|
|
|
12,805,567
|
Other non-current assets
|
|
|
1,797,879
|
|
|
2,105,832
|
Total assets
|
|
|
193,606,105
|
|
|
73,672,919
|
|
|
|
|
|
|
|
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
114,612
|
|
|
217,451
|
Income taxes payable
|
|
|
3,228,072
|
|
|
3,012,165
|
Deferred revenue
|
|
|
20,043,271
|
|
|
15,487,494
|
Accrued expenses and other current liabilities
|
|
|
7,941,867
|
|
|
6,617,558
|
Total current liabilities
|
|
|
31,327,822
|
|
|
25,334,668
|
Other non-current liabilities
|
|
|
241,342
|
|
|
243,555
|
Total liabilities
|
|
|
31,569,164
|
|
|
25,578,223
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
————
|
|
|
————
|
Mezzanine equity:
|
|
|
|
|
|
|
Series A convertible redeemable preferred shares
|
|
|
————
|
|
|
419,776
|
Series B convertible redeemable preferred shares
|
|
|
————
|
|
|
15,747,869
|
Series C convertible redeemable preferred shares
|
|
|
————
|
|
|
95,211,135
|
Total mezzanine equity
|
|
|
————
|
|
|
111,378,780
|
|
|
|
|
|
|
|
Shareholders’ equity (deficit):
|
|
|
|
|
|
|
Ordinary shares
|
|
|
50,657
|
|
|
12,226
|
Additional paid-in capital
|
|
|
219,076,654
|
|
|
————
|
Accumulated other comprehensive income
|
|
|
1,227,420
|
|
|
1,634,920
|
Accumulated deficit
|
|
|
(58,317,790)
|
|
|
(64,931,230)
|
Total shareholders’ equity (deficit)
|
|
|
162,036,941
|
|
|
(63,284,084)
|
Total liabilities, mezzanine equity and shareholders’ equity (deficit)
|
|
|
193,606,105
|
|
|
73,672,919
|
|
|
|
|
|
|
|
TARENA INTERNATIONAL, INC. AND SUBSIDIARIES
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
For the Three Months Ended June 30
|
|
For the Six Months Ended June 30
|
|
|
|
2014
|
|
|
2013
|
|
2014
|
2013
|
|
|
|
US$
|
|
|
US$
|
|
US$
|
US$
|
|
Net revenues
|
|
|
31,942,301
|
|
|
|
20,825,503
|
|
|
56,280,750
|
|
35,967,104
|
|
Cost of revenues(a)
|
|
|
(9,211,736)
|
|
|
|
(6,615,820)
|
|
|
(17,796,655)
|
|
(12,629,313)
|
|
Gross profit
|
|
|
22,730,565
|
|
|
|
14,209,683
|
|
|
38,484,095
|
|
23,337,791
|
|
Selling and marketing expenses(a)
|
|
|
(10,299,493)
|
|
|
|
(7,670,643)
|
|
|
(19,127,123)
|
|
(13,188,783)
|
|
General and administrative expenses(a)
|
|
|
(7,432,800)
|
|
|
|
(3,683,816)
|
|
|
(13,190,817)
|
|
(6,863,215)
|
|
Research and development expenses(a)
|
|
|
(1,366,025)
|
|
|
|
(996,117)
|
|
|
(2,510,837)
|
|
(1,623,240)
|
|
Operating income
|
|
|
3,632,247
|
|
|
|
1,859,107
|
|
|
3,655,318
|
|
1,662,553
|
|
Interest income
|
|
|
1,006,550
|
|
|
|
512,093
|
|
|
1,465,869
|
|
804,932
|
|
Foreign exchange gain(loss)
|
|
|
794,996
|
|
|
|
(119,937)
|
|
|
877,096
|
|
(161,338)
|
|
Other income
|
|
|
973,929
|
|
|
|
37,620
|
|
|
1,446,772
|
|
38,337
|
|
Income before income taxes
|
|
|
6,407,722
|
|
|
|
2,288,883
|
|
|
7,445,055
|
|
2,344,484
|
|
Income tax expense
|
|
|
(675,919)
|
|
|
|
(406,789)
|
|
|
(750,343)
|
|
(416,499)
|
|
Net income
|
|
|
5,731,803
|
|
|
|
1,882,094
|
|
|
6,694,712
|
|
1,927,985
|
|
Accretion of convertible redeemable preferred shares
|
|
|
(18,920)
|
|
|
|
(506,956)
|
|
|
(576,431)
|
|
(991,103)
|
|
Net income attributable to ordinary shareholders(b)
|
|
|
5,712,883
|
|
|
|
1,375,138
|
|
|
6,118,281
|
|
936,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income(loss) per share(c):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.11
|
|
|
|
0.04
|
|
|
0.14
|
|
0.02
|
|
Diluted
|
|
|
0.10
|
|
|
|
0.02
|
|
|
0.11
|
|
0.02
|
|
Weighted average number of ordinary shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
49,812,756
|
|
|
|
10,851,287
|
|
|
31,123,486
|
|
10,851,287
|
|
Diluted
|
|
|
56,839,519
|
|
|
|
16,483,830
|
|
|
38,045,512
|
|
15,915,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
5,731,803
|
|
|
|
1,882,094
|
|
|
6,694,712
|
|
1,927,985
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil income taxes
|
|
|
10,323
|
|
|
|
455,325
|
|
|
(407,500)
|
|
528,643
|
|
Comprehensive income
|
|
|
5,742,126
|
|
|
|
2,337,419
|
|
|
6,287,212
|
|
2,456,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes share-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30
|
|
For the Six Months Ended June 30
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
|
|
US$
|
|
|
|
US$
|
|
|
US$
|
|
US$
|
|
Cost of revenues
|
|
|
24,770
|
|
|
|
4,295
|
|
|
33,174
|
|
8,590
|
|
Selling and marketing expenses
|
|
|
69,635
|
|
|
|
11,308
|
|
|
100,525
|
|
22,616
|
|
General and administrative expenses
|
|
|
1,278,008
|
|
|
|
149,263
|
|
|
1,679,952
|
|
298,527
|
|
Research and development expenses
|
|
|
82,743
|
|
|
|
12,003
|
|
|
117,744
|
|
24,006
|
|
|
(b) The net income (loss) attributable to ordinary shareholders reflected the impact of non-cash accounting charges relating to the preferred shares. All outstanding preferred shares were automatically converted into ordinary shares upon the completion of the Company’s IPO on April 3, 2014. Thereafter, there will be no accretion to the preferred shares and all net income will be attributable to the ordinary shareholders.
|
|
(c) The Company uses the two-class method to calculate basic and diluted earnings per share. Under the two-class method, when calculating the basic and dilutive EPS, net income attributable to ordinary shareholders is adjusted to reflect the net income which is allocated to preferred shares.
|
|
TARENA INTERNATIONAL, INC. AND SUBSIDIARIES
|
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
|
|
|
|
|
|
|
|
For the Three Months Ended June 30
|
|
For the Six Months Ended June 30
|
|
|
2014
|
|
|
2013
|
|
2014
|
|
|
2013
|
|
|
US$
|
|
|
US$
|
|
US$
|
|
|
|
US$
|
GAAP Cost of revenues
|
|
|
9,211,736
|
|
|
|
6,615,820
|
|
|
17,796,655
|
|
|
|
12,629,313
|
Share-based compensation expense in cost of revenues
|
|
|
24,770
|
|
|
|
4,295
|
|
|
33,174
|
|
|
|
8,590
|
Non-GAAP cost of revenues
|
|
|
9,186,966
|
|
|
|
6,611,525
|
|
|
17,763,481
|
|
|
|
12,620,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Selling and marketing expenses
|
|
|
10,299,493
|
|
|
|
7,670,643
|
|
|
19,127,123
|
|
|
|
13,188,783
|
Share-based compensation expense in selling and marketing expenses
|
|
|
69,635
|
|
|
|
11,308
|
|
|
100,525
|
|
|
|
22,616
|
Non-GAAP selling and marketing expenses
|
|
|
10,229,858
|
|
|
|
7,659,335
|
|
|
19,026,598
|
|
|
|
13,166,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and administrative expenses
|
|
|
7,432,800
|
|
|
|
3,683,816
|
|
|
13,190,817
|
|
|
|
6,863,215
|
Share-based compensation expense in general and administrative expenses
|
|
|
1,278,008
|
|
|
|
149,263
|
|
|
1,679,952
|
|
|
|
298,527
|
Non-GAAP general and administrative expenses
|
|
|
6,154,792
|
|
|
|
3,534,553
|
|
|
11,510,865
|
|
|
|
6,564,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research and development expenses
|
|
|
1,366,025
|
|
|
|
996,117
|
|
|
2,510,837
|
|
|
|
1,623,240
|
Share-based compensation expense in research and development expenses
|
|
|
82,743
|
|
|
|
12,003
|
|
|
117,744
|
|
|
|
24,006
|
Non-GAAP research and development expenses
|
|
|
1,283,282
|
|
|
|
984,114
|
|
|
2,393,093
|
|
|
|
1,599,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
3,632,247
|
|
|
|
1,859,107
|
|
|
3,655,318
|
|
|
|
1,662,553
|
Share-based compensation expenses
|
|
|
1,455,156
|
|
|
|
176,869
|
|
|
1,931,395
|
|
|
|
353,739
|
Non-GAAP operating income
|
|
|
5,087,403
|
|
|
|
2,035,976
|
|
|
5,586,713
|
|
|
|
2,016,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
5,731,803
|
|
|
|
1,882,094
|
|
|
6,694,712
|
|
|
|
1,927,985
|
Share-based compensation expense
|
|
|
1,455,156
|
|
|
|
176,869
|
|
|
1,931,395
|
|
|
|
353,739
|
Non-GAAP net income
|
|
|
7,186,959
|
|
|
|
2,058,963
|
|
|
8,626,107
|
|
|
|
2,281,724
|
Accretion of convertible redeemable preferred shares
|
|
|
(18,920)
|
|
|
|
(506,956)
|
|
|
(576,431)
|
|
|
|
(991,103)
|
Non-GAAP net income attributable to ordinary shareholders
|
|
|
7,168,039
|
|
|
|
1,552,007
|
|
|
8,049,676
|
|
|
|
1,290,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.14
|
|
|
|
0.04
|
|
|
0.18
|
|
|
|
0.03
|
Diluted
|
|
|
0.12
|
|
|
|
0.03
|
|
|
<
Innovative study concept means anyone can study business without leaving Hong Kong
HONG KONG, Aug. 19, 2014 /PRNewswire/ — A new initiative, due to launch in September, will allow anyone in Hong Kong or anywhere in the world to study business for free at a renowned UK university, thanks to a collaboration between global accountancy body ACCA (the Association of Chartered Certified Accountants), the University of Exeter Business School and online learning platform FutureLearn.
Together, they are launching a Massive Open Online Course (MOOC) — Discovering Business in Society — which is free to study and open to anyone in the world with access to the internet. The aim of the eight–week course is to give anyone interested in learning the principles of business, including prospective undergraduate students, working professionals without a background in business, people looking to return to work after an absence, or anyone seeking to further educate themselves. And for those interested in entering the finance profession and seeking a route to ACCA membership, the MOOC can be a starting point.
Jane Cheng, head of ACCA Hong Kong, said: “The whole point of this MOOC is that it is all encompassing. Yes, it can be a way for someone looking to begin their journey into the finance profession with ACCA, but equally it could be useful to anyone in Hong Kong or any other country seeking to start a business to get a better understanding of what’s involved, or a parent looking to return to work with a new set of skills. It’s not unusual today for those people already in work to look to change career, and this gives them a taster of what it might be like in a business environment. It’s open to anyone, anywhere, of any age who wants to do it.
“Because it is entirely online, anyone in the world with access to the internet can study it, even though it is delivered by a prestigious UK university. Even if those who study it choose not to use it to further their careers or become entrepreneurs they will have a deeper understanding of how business is relevant in society.”
The Discovering Business in Society MOOC will cover a range of topics, including:
- Purpose and types of business organisation
- The changing world of business
- Environmental and regulatory factors
- Economic factors
- Internal organisation and governance
First steps to accountancy
For those who complete the course and choose to take the optional assessment at the end of the course, which does have a fee attached to it, it could be the first step on the ladder to becoming a qualified ACCA accountant.
Those who are successful in completing the optional examinations can claim exemption from the ACCA F1 paper, Accountant in Business.
Clare Minchington, ACCA Executive Director, said: “The option is there to get that first part of the ACCA qualification under your belt should you decide a career in accountancy is for you. However, we didn’t launch the MOOC just to give people the opportunity to study our globally recognised qualification. Those who study it are under no obligation to take the examination at the end. When we say it is open to all, we don’t just mean those looking to become ACCA accountants. Our ethos has always been open access and this MOOC is testament to that thinking.”
Register for the ACCA-sponsored MOOC at Discovering Business in Society
Notes to Editors
- ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
- We support our 170,000 members and 436,000 students in 180 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of 91 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.
- As the first global accountancy body entering into China, ACCA now has over 23,000 members and 48,000 students, with 8 offices in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen, Shenyang, Hong Kong SAR, and Macau SAR.
- Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accounting professionals bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.
- For more information, please visit:
www.accaglobal.com | www.facebook.com/ACCA.HongKong
Gum for oral care and diabetes detecting bees are two of six innovations seeking to disrupt healthcare opportunities for urban slum dwellers
BOSTON, Aug. 18, 2014 /PRNewswire/ — After completing a month-long start-up accelerator hosted by Hult International Business School’s Boston campus, the six finalist teams vying for the US1M Hult Prize now have one month remaining to refine their pitches before presenting to President Clinton at the CGI Annual Meeting in New York on 23 September.
During the start-up accelerator, teams from University of Pennsylvania, Massachusetts Institute of Technology, HEC Paris, ESADE Business School, Indian School of Business, and York University received mentorship from prominent business leaders and Hult faculty in order to hone their start-up ideas – which address the issue of non-communicable-disease (NCD) in urban slums.
“Given the complexity associated with the healthcare topic, I am excited that we continue to see the same high-quality ideas and solutions coming from the teams,” said Dr. Hitendra Patel, Professor of Innovation at Hult and leader of the Hult Prize Accelerator. “Teams this year are presenting potentially groundbreaking solutions for the prevention and detection of cardiovascular diseases, respiratory diseases, diabetes, and cancer. I am honoured to be a part of the Hult Prize initiative, and wish all of the finalists good luck as they prepare for their final pitches.”
A panel of all-star judges, including Dr. Mohammad Yunus (Nobel Laureate and founder of Grameen Bank), Dr. Sanjay Gupta (neurosurgeon and Chief Medical Correspondent for CNN), Sheila Marcelo (Founder and CEO of Care.com), Fadi Ghandour (Founder and Vice Chairman of Aramex), and Ashish Thakkar (Founder and Managing Director of the Mara Group of companies), will join President Clinton to select the winning team.
“The Hult Prize continues to transform the way students define their place in the world they inherit and how they can address big social issues affecting all of us,” said Dr. Stephen Hodges, President of Hult International Business School. “We are honoured to host these young social entrepreneurs and support them as their ideas come to life.”
Over the last five years, the Hult Prize has brought together 35,000 college and university students from 600 schools to solve some of the world’s most pressing challenges. To learn more about the prize and this year’s solutions, visit http://www.hultprize.org.
HARBIN, China, August 15, 2014 /PRNewswire/ — China Education Alliance, Inc. (“China Education Alliance” or the “Company”, OTCQX: CEAI), a China-based education resource and services company, today announced its second quarter 2014 financia…
— Net Revenue Up 36.6% Year-Over-Year to $25.0 Million, Exceeding Guidance —
— Net Income Up 139.5% Year-Over-Year to $5.3 Million —
— Company Again Raises FY14 Net Revenue Gui…
More students on the path to become ACCA members
HONG KONG, Aug. 12, 2014 /PRNewswire/ — Record numbers of students have successfully completed their final ACCA (the Association of Chartered Certified Accountants) exams in the June 2014 sitting, when 190,000 candidates took over 330,000 papers around the world.
Many students are also tackling exams online, with an additional 53,000 students sitting computer based exams.
The June 2014 session saw 8,325 students satisfy the exam component of their professional qualification, enabling them to take the next step to ACCA membership. Students also need to complete practical experience and ethics requirements to become ACCA members.
Overall pass rates rose to 43% for the ACCA Skills and Professional exams, largely due to improved performances in the Skills exams, while pass rates in the Professional Level remained steady.
At 52%, the results for Paper P1, Governance, Risk and Ethics, were pleasing. This exam assesses students using a range of case studies based on real world business scenarios. It requires students to demonstrate their competency in understanding and managing risks, as well as resolving ethical dilemmas.
As a result of completing their Fundamentals level, 8,744 students are now eligible for ACCA’s Advanced Diploma in Accounting and Business on completion of their Professional Ethics module, one of the requirements for ACCA membership. The Advanced Diploma celebrates students’ achievement of the Fundamentals level before they move on to the Professional level and awards a professional certification equivalent in level to a bachelor honours degree.
The results for the Knowledge level of the ACCA exams (F1 to F3) and the equivalent exams in the Foundation Level have improved this session. This is very pleasing, given that the structure of the exams has now changed so that students must now complete multi-task questions which require students to tackle longer questions around one or more scenarios, thereby demonstrating their understanding of the issues.
In addition to new, free specimen exams, the launch of this new style exam was supported by practice tests which students can purchase. These tests are intended as final mock exam practice and in addition to providing a near identical exam experience, they provide user friendly feedback, enabling them to see their strengths and weaknesses and supporting them to target properly their final pre-exam revision.
Alan Hatfield, ACCA director – learning, said: “We would like to congratulate all students who have passed their examinations this session, particularly the record number of students who have passed their final level exams and are well on their way to becoming ACCA members. The exams within the Professional level represent a major challenge for students, being set at an equivalent level to a Masters degree.
“The pass rates across our Options papers continue to be a particular challenge and performance in Paper P5, Advanced Performance Management remains disappointing. As always, we see a greater number of students passing who have attended ACCA approved courses of study and have used our approved study materials, which are reviewed by our examining team. The poorer pass rate in Paper P5 is in part explained by our analysis which shows that fewer students accessed tuition for this paper than any other ACCA exam. As part of our ongoing activities to raise pass rates we are exploring new and innovative ways to provide students with additional learning support, focusing particularly on the Options papers,” he added.
“We are delighted that 76% of employers agree that the ACCA Qualification helps them to grow business by providing accountants with the skills and capabilities they need. We continually respond to employer feedback and this year is an exciting year for changes to some of our exams as we act on further feedback. Employers have stated they wish to see greater breadth of syllabus covered in the Skills exams, ensuring thorough understanding of the F5 to F9 subject areas. New exam structures will reflect this from December, by introducing some multiple choice elements (20-40%) without losing the written, analytical skills it is necessary for students to develop. Additionally, to add greater flexibility, the F4 exams will also have a new format similar to the current F1 to F3, with the English and Global versions being available on demand through computer based examination from November,” said Alan Hatfield.
June 2014 session ACCA Qualification pass rates:
Fundamental Knowledge exams Paper F1, Accountant in Business, 80% Paper F2, Management Accounting, 60% Paper F3, Financial Accounting, 63%
Fundamental Skills exams Paper F4, Corporate and Business Law, 45% Paper F5, Performance Management, 39% Paper F6, Taxation, 53%
Paper F7, Financial Reporting, 47% Paper F8, Audit and Assurance, 40% Paper F9, Financial Management, 40%
Professional Level Essentials exams Paper P1, Governance, Risk and Ethics, 52% Paper P2, Corporate Reporting, 47% Paper P3, Business Analysis, 46%
Professional Level Options exams Paper P4, Advanced Financial Management, 35% Paper P5, Advanced Performance Management, 29% Paper P6, Advanced Taxation, 39% Paper P7, Advanced Audit and Assurance, 36%
June 2014 session Foundation Level pass rates:
Introductory Certificate in Financial and Management Accounting FA1, Recording Financial Transactions, 74% MA1, Management Information, 76%
Intermediate Certificate in Financial and Management Accounting FA2, Maintaining Financial Records, 66% MA2, Managing Costs and Finance, 58%
Diploma in Accounting and Business FAB, Accountant in Business, 66% FMA, Management Accounting, 55% FFA, Financial Accounting, 54%
Foundation Specialist papers FAU, Foundations in Audit, 51% FTX, Foundations in Taxation, 79% FFM, Foundations in Financial Management, 58%
Notes to Editors
- ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
- We support our 170,000 members and 436,000 students in 180 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of 91 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.
- As the first global accountancy body entering into China, ACCA now has over 23,000 members and 48,000 students, with 8 offices in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen, Shenyang, Hong Kong SAR, and Macau SAR.
- Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accounting professionals bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.
- For more information, please visit: http://www.accaglobal.com | http://www.facebook.com/ACCA.HongKong
BEIJING, August 5, 2014 /PRNewswire/ — Tarena International, Inc. (NASDAQ: TEDU) (“Tarena” or the “Company”), a leading provider of professional education services in China, today announced that it will release its unaudited financial resul…
BEIJING, July 31, 2014 /PRNewswire/ — TAL Education Group (NYSE: XRS) (“TAL” or the “Company”), a leading K-12 after-school tutoring services provider in China, today announced that it will hold its annual general meeting of shareholders at…
|