Ambow Education Announced 3rd-Quarter 2k19 Fiscal Results

Ambow Education Holding Ltd. (“Ambow” or the “Company”) (NYSE American: AMBO), a leading national provider of educational and career enhancement services in China, newly declared its unaudited financial and operating results for the 3.0-month and 9.0-month durations finished September 30, 2k19.

3rd-Quarter 2k19 Financial Highlights

  • Net revenues for the 3rd-quarter of 2k19 inclined by 12.70 percent to US$17.70M from US$15.70M in a similar duration of 2k18. This incline was mainly driven by higher student enrollment.
  • Gross profit for the 3rd-quarter of 2k19 inclined by 4.70 percent to US$4.50M from US$4.30M in a similar duration of 2k18. The gross profit margin was 25.40 percent, compared with 27.40 percent for the 3rd-quarter of 2k18. The decline in gross profit margin was primarily due to additional investments in new programs and new technology deployment.
  • Operating costs for the 3rd-quarter of 2k19 inclined by 141.70 percent to US$14.50M from US$6.00M for a similar duration of 2k18. The incline of operating costs was primarily due to more marketing activities to promote student enrollment, additional investments in new programs and new technology deployment, incline in staff compensation and an impairment loss of goodwill and intangible assets in US$5.40M recorded in the 3rd-quarter.
  • Net loss attributable to ordinary shareholders was US$10.20M, or US$0.230 for each basic and diluted share, compared with a net loss of US$1.80M, or US$0.040 for each basic and diluted share, for the 3rd-quarter of 2k18.
  • As of September 30, 2k19, Ambow maintained strong cash resources of US$43.90M, comprised of cash and cash equivalents of US$18.40M and short-term investments of US$25.50M.
  • As of September 30, 2k19, the Company’s deferred revenue balance was US$33.70M, representing an 86.20 percent incline from US$18.10M as of December 31, 2k18, mainly attributable to the tuition and course fees collected in the K-12 business segment for the 2k19-2k20 academic year, deferred revenue collected from our education service platforms and the tuition fees collected for the fall semester of 2k19.

1st-9.0 Months 2k19 Fiscal Highlights

  • Net revenues for the 1st-9.0 months of 2k19 inclined by 8.70 percent to US$57.40M from US$52.80M in a similar duration of 2k18. This incline was mainly driven by higher student enrollment.
  • Gross profit for the 1st-9.0 months of 2k19 declined by 2.0 percent to US$19.50M from US$19.90M in a similar duration of 2k18. The gross profit margin was 34.00 percent, compared with 37.70 percent for the 9.0 months of 2k18. The decline in gross profit margin was primarily due to additional investments in new programs and new technology deployment.
  • Operating costs for the 1st-9.0 months of 2k19 inclined by 63.20 percent to US$31.00M from US$19.00M for a similar duration of 2k18. The incline of operating costs was primarily due to more marketing activities to promote student enrollment, additional investments in new programs and new technology deployment, incline in staff compensation and an impairment loss of goodwill and intangible assets in US$5.40M recorded in the 3rd-quarter of 2k19.
  • Net loss attributable to ordinary shareholders was US$12.30M, or US$0.280 for each basic and diluted share, compared with a net income of US$2.00M, or US$0.050 for each basic and diluted share, for the 1st-9.0 months of 2k18.

 

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all amounts translated from RMB to U.S. dollars for the 3rd-quarter and 1st-9.0 months of 2k19 are based on the effective exchange rate of 7.1477 as of September 30, 2k19; all amounts translated from RMB to U.S. dollars for the 3rd-quarter and 1st-9.0 months of 2k18 are based on the effective exchange rate of 6.8680 as of September 28, 2k18; all amounts translated from RMB to U.S. dollars as of December 31, 2k18 are based on the effective exchange rate of 6.8755 as of December 31, 2k18. The exchange rates were according to the middle rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

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