Press Releases

Unedited news and product information from vendors.

ChinaEdu Reports First Quarter 2013 Results
Jun 19, 2013 (12:06 PM EDT)


BEIJING, June 19, 2013 /PRNewswire/ -- ChinaEdu Corporation (NASDAQ: CEDU) ("ChinaEdu" or the "Company"), a leading online educational services provider in China, today announced its unaudited financial results for the first quarter ended March 31, 2013.[1]

First Quarter 2013 Highlights  

  • Total net revenue for the first quarter of 2013 was $19.2 million, a 4.9 percent increase from $18.3 million in the corresponding period in 2012. Total net revenue was within the Company's  guidance range for the quarter.
  • Net revenue from online degree programs was $15.2 million, an increase of 2.6 percent from $14.8 million in the corresponding period of 2012.
  • Net income attributable to ChinaEdu was $1.9 million, an increase of 11.6 percent from $1.7 million in the corresponding period of 2012.
  • Adjusted net income attributable to ChinaEdu[2] was $2.4 million, an increase of 10.6 percent from $2.2 million in the corresponding period of 2012.
  • Net income attributable to ChinaEdu per diluted ADS[3] was $0.144, an increase of 43.6 percent from $0.100 in the corresponding period of 2012.
  • Adjusted net income attributable to ChinaEdu per diluted ADS[4] was $0.186, an increase of 43.2 percent from $0.130 in the corresponding period of 2012.
  • The number of revenue students[5] enrolled in online degree programs during the Fall 2012 semester increased by 5.1 percent year-over-year to approximately 207,000 students.

[1]

The reporting currency of the Company is RMB, but for the convenience of the reader, the amounts for the three months ended on March 31, 2013 are presented in U.S. dollars. Unless otherwise stated, all translations from RMB to U.S. dollars were made at the rate of RMB6.2108 to $1.00, the noon buying rate in effect on March 31, 2013 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release. An explanation of the Company's non-GAAP financial measures is included in the section entitled "Non-GAAP Financial Measures" below, and the related reconciliations to GAAP financial measures are presented in the accompanying financial statements.

[2]

"Adjusted net income attributable to ChinaEdu" is a non-GAAP measure defined as net income attributable to ChinaEdu excluding share-based compensation net of non-controlling interests' portion, amortization of intangible assets and land use rights, and intangible assets impairment.

[3]

"ADS" is American Depositary Share. Each ADS represents three ordinary shares.

[4]

"Adjusted net income attributable to ChinaEdu per diluted ADS" is a non-GAAP measure which is computed using adjusted net income attributable to ChinaEdu over the number of ADSs used in net income attributable to ChinaEdu per diluted ADS calculation.

[5]

"Revenue students" refers to students of university online degree programs who have paid tuitions. The numbers for the three months ended March 31, 2013 and 2012 are revenue students in Fall 2012 and Fall 2011, respectively.

Julia Huang, executive chairman of ChinaEdu commented, "We are pleased with the start of 2013. During the year, we will remain dedicated to technological innovation, continually increasing ways in which emerging technology can be applied to our teaching and learning methods. We will continue to focus investment on the areas of our business that provide steady returns and demonstrate consistent cost control with ever-improving efficiency in spending."

Financial Results for the First Quarter Ended March 31, 2013

Net Revenue

Total net revenue for the first quarter of 2013 was $19.2 million, a 4.9 percent increase from $18.3 million in the corresponding period in 2012.

Net revenue from online degree programs for the first quarter of 2013 was $15.2 million, a 2.6 percent increase over $14.8 million in the corresponding period in 2012. The increase in net revenue from online degree programs was primarily related to organic growth in revenue students enrolled in online degree programs, and continued expansion and optimization of the Company's learning centers network. Enrollment for the 2012 Fall semester online degree programs was approximately 207,000 revenue students, a 5.1 percent increase from approximately 197,000 revenue students enrolled in the Fall semester in 2011.

By the end of the first quarter of 2013, ChinaEdu's learning centers network was providing recruiting services for 23 universities with 122 operational learning centers, of which 54 were proprietary centers[6] and 68 were contracted centers[7]. This compares to 105 operational learning centers as of March 31, 2012, of which 55 were proprietary and 50 were contracted centers.

Net revenue from non-degree programs, including online tutoring programs, private primary and secondary schools and international curriculum programs in the first quarter of 2013 was $4.0 million, a 14.3 percent increase from $3.5 million in the first quarter of 2012. Of that, approximately $0.3 million was attributable to increased enrollment and increased tuition at our private school in the city of Anqing.

[6]

Proprietary centers refer to self-owned learning centers operated either under the Company's own brand name or the brand name of a university pursuant to a licensing arrangement with that university.

[7]

Contracted centers refer to agreement with third party learning centers pursuant to which the Company only provides assistance applying for approval from provincial level education authorities as well as securing additional university online degree programs. In return, the Company receives a percentage of the tuition earned by these third party learning centers.

Cost of Revenue

Total cost of revenue for the first quarter of 2013 was $7.5 million, an increase of 2.3 percent, from $7.3 million in the corresponding period of 2012.

Cost of revenue for online degree programs in the first quarter of 2013 was $5.2 million, an increase of 6.1 percent compared to $4.9 million in the corresponding period of 2012. The increase in cost of revenue was primarily related to staff costs increasing by $0.1 million and service station fees increasing by $0.2 million.

Cost of revenue for non-degree programs in the first quarter of 2013 was $2.3 million, a decrease of 5.4 percent from $2.4 million in the first quarter of 2012. The decrease in cost of revenue for non-degree programs was primarily related to the decrease of depreciation and amortization costs associated with our international curriculum programs.

Gross Profit and Gross Margin

Gross profit for the first quarter of 2013 was $11.7 million, compared to $11.0 million in the corresponding period of 2012. Gross margin increased slightly to 61.0 percent, compared to 60.1 percent for the corresponding period in 2012.

Gross margin for online degree programs was 65.9 percent, a slight decrease from 67.0 percent in the first quarter of 2012. The slight decrease was primarily due to an overall increase in the percentage of total net revenue contributed by the Company's learning centers network. The learning centers network's sales and service based model results in a slightly higher cost of sales, whereas the joint venture model is more operationally driven. In general, more revenue generated from our learning centers network results in lower gross margin for our overall online degree programs.

Gross margin for online tutoring programs increased to 64.3 percent from 54.7 percent in the first quarter of 2012, mainly due to increased net revenue as well as decreased lease and service costs.

Gross margin for private schools in the first quarter of 2013 increased to 32.7 percent, compared to 27.6 percent in the corresponding period in 2012. The increase of gross margin was primarily due to increased net revenue at our private school in Anqing.

Operating Expenses

Total operating expenses were $7.5 million in the first quarter of 2013, an increase of 1.5 percent, from $7.4 million in the corresponding period in 2012. As a percentage of net revenue, total operating expenses decreased to 39.1 percent, compared to 40.4 percent in the corresponding period in 2012. The increase in total operating expense was the result of the following:

  • General and administrative expenses for the first quarter of 2013 were $4.1 million, a decrease of 1.3 percent from $4.2 million in the corresponding period in 2012. As a percentage of net revenue, general and administrative expenses decreased to 21.3 percent from 22.7 percent in the same period in 2012. The decrease in general and administrative expenses was primarily the result of a one-time early lease termination fee in the first quarter of 2012 that was related to a leased property used by our international curriculum programs.
  • Selling and marketing expenses were $1.6 million in the first quarter of 2013, a decrease of 2.4 percent compared to $1.7 million in the corresponding period in 2012. As a percentage of net revenue, selling and marketing expenses decreased to 8.5 percent from 9.2 percent in the same period in 2012.
  • Research and development expenses for the first quarter of 2013 were $1.8 million, an increase of 13.0 percent compared to $1.6 million in the corresponding period in 2012. As a percentage of net revenue, the research and development expense was 9.2 percent in the first quarter of 2013, increasing from 8.6 percent in the same period of 2012. The increase in research and development expenses relative to net revenue was primarily due to increased staff costs associated with the company's investment in technology upgrades.

Income from Operations

Income from operations in the first quarter of 2013 was $4.2 million, an increase of 17.1 percent compared to $3.6 million in the corresponding period of 2012. Operating margin increased to 21.9 percent in the first quarter of 2013, compared to 19.6 percent in the corresponding period of 2012.

Adjusted income from operations, a non-GAAP measure defined as income from operations excluding share-based compensation, amortization of intangible assets, land use rights and intangible assets impairment, was $4.8 million in the first quarter of 2013, an increase of 15.1 percent compared to $4.1 million in the corresponding period of 2012.

Adjusted operating margin, a non-GAAP measure defined as the ratio of adjusted income from operations (non-GAAP) over net revenue, for the first quarter of 2013 increased to 24.8 percent, compared to 22.6 percent for the corresponding period of 2012.

Interest expense

Interest expense for the first quarter of 2013 was $0.3 million, and is primarily related to our loans with The Bank of East Asia, Limited.

Income Tax Expense

In the first quarter of 2013, income tax expense was $1.0 million and the effective income tax rate was 21.2 percent.

Net Income Attributable to ChinaEdu

Net income attributable to ChinaEdu, which is net income, excluding net income attributable to non-controlling interests, was $1.9 million in the first quarter of 2013, representing an increase of 11.6 percent from $1.7 million in the corresponding period of 2012. The increase was primarily due to an increase in gross profit across online tutoring programs and private primary and secondary schools, as well as effective expense control.

Net income attributable to ChinaEdu per basic and diluted ADS was $0.156 and $0.144, respectively, for the first quarter of 2013, compared to $0.106 and $0.100, respectively, for the corresponding period in 2012.

Adjusted net income attributable to ChinaEdu (non-GAAP) was $2.4 million in the first quarter of 2013, compared to $2.2 million in the corresponding period of 2012. Adjusted net margin, a non-GAAP measure defined as the ratio of adjusted net income attributable to ChinaEdu (non-GAAP) over net revenue, was 12.5 percent in the first quarter of 2013, compared to 11.9 percent in the corresponding period of 2012.

Adjusted net income attributable to ChinaEdu per basic and diluted ADS (non-GAAP) was $0.203 and $0.186 respectively, for the first quarter of 2013, compared to $0.138 and $0.130, respectively, for the corresponding period of 2012.

Deferred Revenue

As of March 31, 2013, deferred revenue was $10.6 million, consisting of current deferred revenue in the amount of $9.1 million and non-current deferred revenue in the amount of $1.5 million.

In general, Fall semester tuition for online degree programs is received during the fourth quarter but is recognized both in the fourth quarter of the current year and the first quarter of the following year.

Private school revenue is received in September, but amortized over 6 or 12 months while online tutoring program revenue can be received at program enrollment and is mostly amortized within 12 months.

Cash and Cash Equivalents and Term Deposits

As of March 31, 2013, the Company reported cash and cash equivalents and term deposits of $53.4 million, which primarily consisted of cash and cash equivalents, and term deposits with original maturity terms of greater than three months but less than one year.

Amounts Due from Related Parties

Amounts due from related parties, which represents cash owed to the Company by collaborative alliance partners, were $47.7 million as of March 31, 2013 compared to $48.7 million as of December 31, 2012.

Share repurchase

On December 31, 2012, the board of directors of ChinaEdu approved a plan to repurchase up to US$40.0 million worth of outstanding ChinaEdu ADSs. In the first quarter of 2013, the Company repurchased an aggregate of 19,724,739 ordinary shares equivalent for a total cash consideration and cancellation fee of RMB231.4 million (equivalent to US$37.3 million). The repurchased shares were all cancelled. Thus net income attributable to ChinaEdu per diluted ADS increased accordingly.

Second Quarter 2013 Guidance

ChinaEdu management expects total net revenue in the second quarter of 2013 to range from RMB124 million to RMB130 million or $20.0 million to $20.9 million, representing an 8 percent to 13 percent increase from RMB115 million or $18.1 million compared to the corresponding period in 2012.

Conference Call

ChinaEdu's management will hold an earnings conference call at 8:00 a.m. U.S. Eastern Time on June 20, 2013 (8:00 p.m. Beijing/Hong Kong Time on June 20, 2013).

Dial-in details for the earnings conference call are as follows:

International:

+65 67239381

Hong Kong:

+852 24750994

United States:

+1 (718) 354-1231

Toll-free China, Mobile:

4006208038

Toll-free China:

8008190121

Toll-free United States:

+1 (866) 519-4004

Conference ID:

83731444



Conference Password:

ChinaEdu

A live and archived webcast of the conference call will be available on the investor relations page of ChinaEdu's website at http://ir.chinaedu.net and a replay of the conference call may be accessed by phone until June 28, 2013.

Dial-in numbers for the replay are as follows:

Toll Free United States:

+1 (855) 452-5696

International:

+61 2 8199 0299

Conference ID:

83731444



Conference Password:

ChinaEdu

Non-GAAP Financial Measures

To supplement the unaudited condensed consolidated financial information presented in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), the Company uses non-GAAP measures of income from operations and net income attributable to ChinaEdu, which are adjusted from results based on GAAP to exclude certain non-cash items of share-based compensation, amortization of intangible assets and land use rights and intangible assets impairment. Adjusted operating margin defined as the ratio of adjusted operating income from operation over net revenue. Adjusted net income attributable to ChinaEdu per basic and diluted ADS are a non-GAAP measure which are computed using adjusted net income attributable to ChinaEdu over the number of ADSs used in net income attributable to ChinaEdu per basic and diluted ADS calculation.

These non-GAAP financial measures are provided to enhance the investors' overall understanding of the Company's current and past financial performance in on-going core operations as well as prospects for the future. These measures should be considered in addition to results prepared and presented in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Management considers the non-GAAP information as important measures internally and therefore deems it important to provide all of this information to investors.

About ChinaEdu

ChinaEdu Corporation is an educational services provider in China, incorporated as an exempted limited liability company in the Cayman Islands. Established in 1999, the Company's primary business is to provide comprehensive services to the online degree programs of leading Chinese universities. These services include academic program development, technology services, enrollment marketing, student support services and finance operations. The Company's other lines of businesses include the operation of private primary and secondary schools, online interactive tutoring services and providing marketing, support for international curriculum programs and online learning community for adult students.

The Company believes it is the largest service provider to online degree programs in China in terms of the number of higher education institutions that are served and the number of student enrollments supported. The Company currently provides technical, recruiting and other services to 27 universities with online degree programs and provides services and support to 11 additional universities that are awaiting regulatory approval to launch their online programs. Of these 38 universities, 13 of them have entered into collaborative alliances with ChinaEdu, ranging from 15 to 50 years in length. Eight of them have entered into technology service agreements, ranging from 3 to 20 years in length. ChinaEdu also performs recruiting services through its nationwide learning center network for 23 universities, including 6 with which the Company has either established collaborative alliances or entered into technology service agreements.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and contingencies, many of which are beyond our control which may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company's actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 2012, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to (and expressly disclaim any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For investor and media inquiries, please contact:

Helen Plummer
Senior Investor Relations Coordinator
ChinaEdu Corporation
Phone: +1 908-442-9395
E-mail: helen@chinaedu.net

Simon Mei
Chief Financial Officer
ChinaEdu Corporation
Phone: +86 (10) 84187301
E-mail: simon@chinaedu.net

 

ChinaEdu Corporation

Unaudited Condensed Consolidated Balance Sheets



 

(in thousands, unaudited)

December 31, 2012

March 31, 2013

March 31, 2013



RMB

RMB

US$






Current assets:





Cash and cash equivalents

385,922

207,448

33,401


Term deposits 

92,028

124,289

20,011


Short-term investments

23,575

18,085

2,912


Accounts receivable, net 

34,917

16,209

2,610


Prepaid expenses and other current assets 

23,455

19,445

3,132


Amounts due from related parties-current

260,184

254,088

40,911


Deferred tax assets-current

9,571

3,213

517

Total current assets 

829,652

642,777

103,494


Term deposits -non current

-

95,850

15,433


Property and equipment, net 

238,563

234,143

37,699


Amounts due from related party-non-current

41,979

41,979

6,759


Land use rights

26,049

25,897

4,170


Deposits paid for acquisition of property and equipment

3,873

3,873

624


Deferred tax assets-non-current

2,085

2,368

381


Long-term investments

801

758

122


Rental deposits

1,497

1,366

220


Acquired intangible assets, net 

54,499

53,700

8,646


Goodwill 

43,255

43,255

6,964

Total assets 

1,242,253

1,145,966

184,512






Liabilities and equity                                                                                                                                           




Current liabilities:





Short term loan (including short term loan of the consolidated VIE without recourse to the 
  Group of nil and nil as of December 31, 2012 and March 31, 2013, respectively)

-

68,120

10,968


Accounts payable (including accounts payable of the consolidated VIE without recourse to the
  Group of 2,007 and 5,311 as of December 31, 2012 and March 31, 2013, respectively)

2,401

5,680

915


Deferred revenues-current (including deferred revenues of the consolidated VIE without recourse to 
  the Group of 23,518 and 25,376 as of December 31, 2012 and March 31, 2013, respectively)

134,175

56,220

9,052


Accrued expenses and other current liabilities (including accrued expenses and other current
  liabilities of the consolidated VIE without recourse to the Group of 22,113 and 25,349 
  as of December 31, 2012 and March 31, 2013, respectively)

113,558

114,055

18,364


Amounts due to related parties-current (including amounts due to related parties of the consolidated
  VIE without  recourse to the Group of 1,926 and 1,960 as of December  31, 2012 and March 31,
  2013, respectively)

35,507

28,577

4,601


Income taxes payable (including income taxes payable of  the consolidated VIE without recourse to the 
  Group of 10,004 and 8,504 as of December 31, 2012 and March 31, 2013, respectively)

49,294

32,421

5,220


Other taxes payable (including other taxes payable of the consolidated VIE without recourse to the 
  Group of 4,442 and 3,819 as of December 31, 2012 and March 31, 2013, respectively)

27,294

18,663

3,005

Total current liabilities 

362,229

323,736

52,125


Long term loan(including long term loan of the consolidated VIE without recourse to the 
  Group of nil and nil as of December 31, 2012 and March 31, 2013, respectively)

-

156,433

25,187


Deferred revenues-non-current (including deferred revenues of the consolidated VIE without recourse 
  to the Group of 29 and 29 as of December 31, 2012 and March 31, 2013, respectively)

10,654

9,785

1,575


Deferred tax liabilities-non-current (including deferred tax liabilities of the consolidated VIE without 
  recourse to the Group of 978 and 968 as of December 31, 2012 and March 31, 2013, respectively)

13,473

13,418

2,160


Unrecognized tax benefit (including unrecognized tax benefit of the consolidated VIE without 
  recourse to the Group of 3,555 and 3,851 as of December 31, 2012 and March 31, 2013, respectively)

8,795

9,383

1,511

Total liabilities 

395,151

512,755

82,558






    ChinaEdu shareholders' equity

650,191

432,660

69,663

    Noncontrolling interests

196,911

200,551

32,291

Total  equity 

847,102

633,211

101,954

Total liabilities and equity 

1,242,253

1,145,966

184,512

 

ChinaEdu Corporation

Unaudited Condensed Consolidated Statements of Operations 




Three Months Ended 

(in thousands,except for percentage, share, and per share information)


March 31, 2012

March 31, 2013


March 31, 2013



RMB

RMB


US$







Gross Revenue *


119,632

122,173


19,670







Business Tax


5,705

2,714


437







Net Revenue:






Online degree programs


91,927

94,315


15,186

Online tutoring programs


6,009

6,731


1,083

Private primary and secondary schools


13,536

15,855


2,553

International curriculum programs


2,455

2,558


411

Total net revenue


113,927

119,459


19,233







Cost of revenue:






Online degree programs


30,319

32,162


5,178

Online tutoring programs


2,721

2,400


386

Private primary and secondary schools


9,806

10,664


1,717

International curriculum programs


2,663

1,309


211

Total cost of revenue


45,509

46,535


7,492







Gross profit:






Online degree programs


61,608

62,153


10,008

Online tutoring programs


3,288

4,331


697

Private primary and secondary schools


3,730

5,191


836

International curriculum programs


(208)

1,249


200

Total gross profit


68,418

72,924


11,741







Online degree programs


67.0%

65.9%


65.9%

Online tutoring programs


54.7%

64.3%


64.3%

Private primary and secondary schools


27.6%

32.7%


32.7%

International curriculum programs


(8.5%)

48.8%


48.8%

Gross margin


60.1%

61.0%


61.0%







Operating expenses:






General and administrative


25,810

25,476


4,102

Selling and marketing


10,463

10,211


1,644

Research and development


9,777

11,046


1,779

Total operating expenses


46,050

46,733


7,525

Income from operations


22,368

26,191


4,216

Operating margin


19.6%

21.9%


21.9%







Interest income 


2,988

2,906


468

Interest expense


-

(1,767)


(285)

Investment income


674

368


59

Other income


247

423


68

Income before income tax and equity method investments


26,277

28,121


4,526

Income tax expense


(5,483)

(5,953)


(958)

Net income before income from equity method investments


20,794

22,168


3,568

Income from equity method investments, net of taxes


-

(43)


(7)

Net income


20,794

22,125


3,561

Net income attributable to the noncontrolling interests


(10,469)

(10,606)


(1,708)

Net income attributable to ChinaEdu


10,325

11,519


1,853

Net margin


9.1%

9.6%


9.6%







Net income attributable to ChinaEdu per ADS:






      Basic 


0.66

0.97


0.156

      Diluted 


0.62

0.89


0.144







Weighted average aggregate number of ADSs outstanding:






      Basic 


15,746,005

11,847,105


11,847,105

      Diluted 


16,761,137

12,892,555


12,892,555













* Gross revenue are detailed as follows






Online degree programs


97,318

96,795


15,585

Online tutoring programs


6,157

6,872


1,106

Private primary and secondary schools


13,558

15,882


2,557

International curriculum programs


2,599

2,624


422

 

ChinaEdu Corporation

Unaudited Condensed Consolidated Statements of Cash Flow




Three Months Ended 

(in thousands, unaudited)


March 31, 2012


March 31, 2013


March 31, 2013



 RMB 


 RMB 


US$








Operating activities:                                                                                     







       Net income 


20,794


22,125


3,561

       Adjustments to reconcile net income to net cash provided by operating
            activities: 







            Share-based compensation 


2,219


2,463


397

            Depreciation and amortization of property and equipment 


6,304


6,373


1,026

            Amortization of land use rights 


152


152


24

            Amortization of acquired intangible assets 


985


799


129

            Investment income 


(69)


(368)


(59)

            Amortization of debt discount 


-


234


38

            Earnings from equity method investment 


-


43


7

            Provision for Accounts Receivable 


340


144


23

            Loss from disposal of property and equipment  


812


9


1

       Changes in assets and liabilities 







            Accounts receivable 


8,839


18,564


2,989

            Prepaid expenses and other current assets 


(2,213)


4,144


668

            Amounts due from related parties 


1,838


6,096


983

            Rental deposits 


471


131


21

            Accounts payable 


2,514


3,279


528

            Deferred revenues 


(78,991)


(78,821)


(12,691)

            Accrued expenses and other current liabilities 


5,974


368


59

            Amounts due to related parties 


9,952


(14,453)


(2,327)

            Income tax payable  


(10,602)


(16,873)


(2,717)

            Other taxes payable


(4,960)


(8,631)


(1,390)

            Deferred income taxes 


2,356


6,020


969

            Unrecognized tax benefit 


640


588


95

Net cash used in operating activities


(32,645)


(47,614)


(7,666)








Investing activities:







            Purchase of property and equipment 


(803)


(1,961)


(316)

            Maturity/(purchase) of term deposits, net 


24,135


(128,119)


(20,628)

            Proceeds from the sale of investments 


10,318


5,482


883

Net cash provided by (used in) investing activities


33,650


(124,598)


(20,061)








Financing activities:







            Proceeds from exercise of share options 


945


-


-

            Financing cost related to loans 


-


(3,751)


(604)

            Proceeds from borrowings of short-term debt 


-


68,410


11,015

            Proceeds from borrowings of long-term debt 


-


159,750


25,721

            Repurchase and cancellation of ordinary shares 


-


(231,358)


(37,251)

Net cash provided by (used in) financing activities


945


(6,949)


(1,119)








Effect of foreign exchange rate changes


(5)


687


110








CASH AND CASH EQUIVALENTS, beginning of period


273,746


385,922


62,137








CASH AND CASH EQUIVALENTS, end of period


275,691


207,448


33,401








Net  increase (decrease) in cash and cash equivalents


1,945


(178,474)


(28,736)

 

ChinaEdu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Income 




Three Months Ended

(in thousands, unaudited)


March 31, 2012


March 31, 2013


March 31, 2013



RMB


RMB


US$

Net income                                                                                                       


20,794


22,125


3,561

Other comprehensive income, net of taxes







  Foreign currency translation adjustments


7


749


121

  Change in fair value of available for sale investments


237


(337)


(54)

Comprehensive income


21,038


22,537


3,628

Less: comprehensive income attributable to noncontrollng interests


10,446


11,173


1,799

Comprehensive income attributable to Chinaedu 


10,592


11,364


1,829

 

ChinaEdu Corporation

Unaudited reconciliations from income from operations to adjusted income from operations (non-GAAP) and
adjusted operating margin (non-GAAP)




Three Months Ended 

(in thousands, unaudited)


March 31,
2012


March 31,
2013


March 31,
2013



 RMB 


 RMB 


US$








Net revenue


113,927


119,459


19,233

Income from operations 


22,368


26,191


4,216

Adjustments:







  Share-based compensation


2,219


2,463


397

  Amortization of intangible assets and land use rights


1,137


951


153

Adjusted income from operations (non-GAAP)


25,724


29,605


4,766

Adjusted operating margin (non-GAAP)


22.6%


24.8%


24.8%


ChinaEdu Corporation

Unaudited reconciliations from net income attributable to ChinaEdu to adjusted net income attributable to ChinaEdu (non-GAAP),
adjusted net margin (non-GAAP) and adjusted net income per ADS (non-GAAP)




Three Months Ended 

(in thousands, unaudited)


March 31,
2012


March 31,
2013


March 31,
2013



 RMB 


 RMB 


US$








Net revenue


113,927


119,459


19,233

Net income attributable to ChinaEdu


10,325


11,519


1,853

Adjustments:







  Share-based compensation


2,219


2,463


397

  Share-based compensation attributable to noncontrolling interests


(177)


-


-

  Amortization of intangible assets and land use rights


1,137


951


153

Adjusted net income attributable to ChinaEdu (non-GAAP)


13,504


14,933


2,403

Adjusted net margin (non-GAAP)


11.9%


12.5%


12.5%








Adjusted net income attributable to ChinaEdu per ADS (non-GAAP):







      Basic 


0.86


1.26


0.203

      Diluted 


0.81


1.16


0.186








Weighted average aggregate number of ADSs outstanding:







      Basic 


15,746,005


11,847,105


11,847,105

      Diluted 


16,761,137


12,892,555


12,892,555

SOURCE ChinaEdu Corporation