BEIJING, Nov. 19, 2020 /PRNewswire/ -- Puxin Limited
(NYSE: NEW) ("Puxin" or the "Company"), a successful consolidator
of the after-school education industry in China, today announced its unaudited financial
results for the third quarter ended September 30, 2020.
Highlights for the Third Quarter Ended September 30, 2020
- Net revenues were RMB833.2
million (US$122.7 million), a
decrease of 16.3% from RMB996.0
million in the third quarter of 2019.
- Net income was RMB42.4 million
(US$6.3 million), an increase of
25.7% from RMB33.7 million in the
third quarter of 2019.
- EBITDA[1] was RMB77.5 million
(US$11.4 million), an increase of
9.4% from RMB70.8 million in the
third quarter of 2019.
- Net income attributable to Puxin Limited was RMB43.5 million (US$6.4
million), an increase of 28.9% from RMB33.7 million in the same period of 2019.
- Adjusted net income attributable to Puxin Limited[2] was
RMB8.6 million (US$1.3 million), a decrease of 80.3% from
RMB43.5 million in the third quarter
of 2019.
- Student enrollments increased by 28.7% to 1,122,167 from
871,896 for the third quarter of 2019.
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[1] EBITDA is a
non-GAAP financial measure, which is defined as net income (loss)
excluding depreciation, amortization, interest expense, interest
income and income tax expenses (benefits).See "Use of Non-GAAP
Financial Measures" and "Reconciliations of GAAP and non-GAAP
results" elsewhere in this earnings release.
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[2] Adjusted net
income (loss) attributable to Puxin Limited is a non-GAAP financial
measure, which is defined as net income (loss) attributable to
Puxin Limited excluding share-based compensation expenses and
gain (loss) on changes in fair value of derivative
liabilities. See "Use of Non-GAAP Financial Measures" and
"Reconciliations of GAAP and non-GAAP results" elsewhere in this
earnings release.
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Highlights for the Nine Months Ended September 30, 2020
- Net revenues were RMB2,185.6
million (US$321.9 million), a
decrease of 2.6% from RMB2,244.6
million for the nine months ended September 30, 2019.
- Net income was RMB33.7 million
(US$5.0 million), compared to net
loss of RMB409.6 million for the nine
months ended September 30, 2019.
- EBITDA was RMB145.4 million
(US$21.4 million), compared to
RMB(280.9) million for the nine
months ended September 30, 2019.
- Net income attributable to Puxin Limited was RMB36.6 million (US$5.4
million), compared to net loss attributable to Puxin Limited
of RMB409.7 million for the nine
months ended September 30, 2019.
- Adjusted net income attributable to Puxin Limited was
RMB79.2 million (US$11.7 million), compared to net loss
attributable to Puxin Limited of RMB91.0
million for the nine months ended September 30, 2019.
- Student enrollments increased by 45.9% to 2,917,116 from
1,999,075 for the nine months ended September 30, 2019.
Mr. Yunlong Sha, Chairman and
Chief Executive Officer of Puxin, commented, "Although the COVID-19
impact continued in some cities during July and August, we still
managed to achieve solid growth in the third quarter.
Notably, we have established the international education business
unit, strategically consolidating our language exam preparation
services and study-abroad consulting services. Our competitive
edge around ZMN Education and Global Education remains strong while
a streamlined operation not only reduced cost, but also elevated
efficiency. The new business unit has successfully bolstered our
service quality and our ability to capture additional market share
through integrating our different brands internally. At the
meantime, our K-12 business remains the business focus of the
group, and we have improved our profitability significantly despite
of the COVID-19 impact. We will continue to invest in improving
teaching quality and learning experience to maintain our firm
position as industry leader in the K-12 after-school tutoring
space."
Mr. Peng Wang, Chief Financial
Officer of Puxin, commented, "Although the summer break was much
shorter this year due to the COVID-19 pandemic, we were able to
achieve net income and EBITDA year-over-year growth of 25.7% and
9.4%, respectively. This is a direct beneficiary of our improved
operations and implementation of the Online-Merge-Offline strategy.
For the three quarters of this year, our net income was
RMB33.7 million, and our EBITDA was
RMB145.4 million. Furthermore, based
on the semi-annual report published by MSCI on November 10, 2020, we have been included in the
MSCI Global Small Cap Index – MSCI China Index for the first time.
This is a recognition of our operational excellence and our value
proposition, which will fuel our continued growth in the capital
markets and deliver long-term, sustained value to our shareholders
and investors."
Financial and Operational Results for the Third Quarter Ended
September 30, 2020
Net Revenues
Net revenues decreased by 16.3% to RMB833.2 million (US$122.7
million) from RMB996.0 million
in the third quarter of 2019. This decrease was primarily due to
the adverse impact of the COVID-19 pandemic on the demand for
study-abroad tutoring services.
Net revenues of K-12 tutoring services increased by 1.0% to
RMB609.3 million (US$89.7 million) from RMB603.2 million in the third quarter of 2019. In
the third quarter of 2020, the student enrollments of K-12 tutoring
services, including group class, personalized tutoring and
full-time tutoring services, reached 827,685.
Net revenues of Puxin Online School increased to RMB32.5 million (US$4.8
million) from RMB7.2 million
in the same period of 2019. Student enrollments of Puxin Online
School were 283,598 in the third quarter of 2020.
Net revenues of study-abroad tutoring services decreased by
50.4% to RMB191.4 million
(US$28.2 million) from RMB385.6 million in the third quarter of 2019.
This was primarily due to a continued impact from the global spread
of the COVID-19 pandemic in major countries of the world. However,
net revenues of study-abroad tutoring service had an increase of
21.6% compared to the second quarter of 2020.
Cost of Revenues
Cost of revenues decreased by 14.6% to RMB422.6 million (US$62.2
million) from RMB494.6 million
in the third quarter of 2019, primarily due to a decrease in staff
cost which reflected the decreased demand for study-abroad services
attributable to the COVID-19 pandemic. Cost of revenues,
excluding share-based compensation expenses, decreased by 14.5% to
RMB422.1 million (US$62.2 million) from RMB493.6 million in the third quarter of
2019.
Gross Profit and Gross Margin
Gross profit was RMB410.6 million
(US$60.5 million), a decrease of
18.1% from RMB501.5 million in the
third quarter of 2019. Gross margin was 49.3%, compared to 50.3%
for the same period in 2019.
Operating Expenses
Total operating expenses decreased by 7.7% to RMB424.6 million (US62.5 million) from
RMB459.9 million in the third quarter
of 2019.
Selling expenses increased by 4.0% to RMB317.0 million (US$46.7
million) from RMB304.8 million
in the third quarter of 2019. Selling expenses, excluding
share-based compensation expenses, increased by 4.7% to
RMB313.9 million (US$46.2 million) from RMB299.9 million in the third quarter of 2019,
primarily due to our increased marketing and promotion activities
during the third quarter of 2020 to further increase student
enrollments.
General and administrative expenses decreased by 30.7% to
RMB107.6 million (US$15.8 million) from RMB155.1 million during the same period of 2019.
General and administrative expenses, excluding share-based
compensation expenses, decreased by 30.3% to RMB104.7 million (US$15.4
million) from RMB150.3 million
in the third quarter of 2019. The decreases were primarily due to
our cost control measures to improve operation efficiency.
Total share-based compensation expenses allocated to related
cost of revenues and operating expenses decreased by 39.5% to
RMB6.5 million (US$1.0 million) from RMB10.7 million in the third quarter of 2019. The
decrease was primarily due to a decrease in the number of options
vested in the third quarter of 2020 compared to the same period of
2019.
Operating Income (Loss) and Operating Margin
Operating loss was RMB13.9 million
(US$2.1 million), compared to
operating income of RMB41.5 million
in the third quarter of 2019. Operating margin was (1.7)% in the
third quarter of 2020, compared to 4.2% for the same period in
2019.
Operating income of K-12 tutoring services decreased by 6.5% to
RMB54.0 million (US$8.0 million) from RMB57.8 million in the same period of 2019.
Operating margin of K-12 tutoring services was 8.9%, slightly
dropped from 9.6% in the same period of 2019.
Adjusted operating loss[3] was RMB7.5
million (US$1.1 million),
compared to adjusted operating income of RMB52.2 million in the third quarter of 2019.
Adjusted operating margin[4] was (0.9)%, compared to 5.2% in the
same period of the prior year.
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[3] Adjusted
operating income (loss) is a non-GAAP financial measure, which is
defined as operating income (loss) 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.
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[4] Adjusted
operating margin is a non-GAAP financial measure, which is defined
as adjusted operating income (loss) divided by net revenues. See
"Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP
and non-GAAP results" elsewhere in this earnings
release.
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Net Income
Net income was RMB42.4 million
(US$6.3 million), an increase of
25.7% from RMB33.7 million in the
third quarter of 2019.
Net income of K-12 tutoring services increased by 93.4% to
RMB99.5 million (US$14.7 million) from RMB51.5 million in the third quarter of 2019.
Net income attributable to Puxin Limited was RMB43.5 million (US$6.4
million), an increase of 28.9% from RMB33.7 million in the same period of 2019. Basic
and diluted net income per ADS attributable to Puxin Limited were
RMB0.50 (US$0.08) and RMB0.48 (US$0.08),
compared to basic and diluted net income per ADS attributable to
Puxin Limited of RMB0.38 and
RMB0.38 during the same period of
2019.
Adjusted net income attributable to Puxin Limited was
RMB8.6 million (US$1.3 million), a decrease of 80.3% from
RMB43.5 million in the third quarter
of 2019. Adjusted basic and diluted net income per ADS attributable
to Puxin Limited[5] were RMB0.1
(US$0.01) and RMB0.1 (US$0.01),
compared to adjusted basic and diluted net income per ADS
attributable to Puxin Limited of RMB0.50 and RMB0.49
during the same period of 2019.
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[5] Adjusted
basic and diluted net income (loss) per ADS attributable to Puxin
Limited is a non-GAAP financial measure, which is defined as basic
and diluted net income (loss) per ADS attributable to Puxin Limited
excluding share-based compensation expenses, gain (loss) on changes
in fair value of derivative liabilities. See "Use of Non-GAAP
Financial Measures" and "Reconciliations of GAAP and non-GAAP
results" elsewhere in this earnings release.
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EBITDA
EBITDA was RMB77.5 million
(US$11.4 million), an increase of
9.4% from RMB70.8 million in the
third quarter of 2019.
EBITDA margin[6] was 9.3% in the third quarter of 2020, compared
to 7.1% in the same period in 2019.
Adjusted EBITDA[7] was RMB42.5
million (US$6.3 million), a
decrease of 47.2% from RMB80.6
million in the third quarter of 2019.
Adjusted EBITDA margin[8] was 5.1%, compared to 8.1% in the same
period in 2019.
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[6] EBITDA
margin is a non-GAAP financial measure, which is defined as EBITDA
divided by net revenues. See "Use of Non-GAAP Financial Measures"
and "Reconciliations of GAAP and non-GAAP results" elsewhere in
this earnings release.
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[7] Adjusted
EBITDA is a non-GAAP financial measure, which is defined as net
income (loss) excluding depreciation, amortization, interest
expense, interest income, income tax expenses (benefits),
share-based compensation expenses and gain (loss) on changes in
fair value of derivative liabilities. See "Use of Non-GAAP
Financial Measures" and "Reconciliations of GAAP and non-GAAP
results" elsewhere in this earnings release.
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[8] Adjusted
EBITDA margin is a non-GAAP financial measure, which is defined as
adjusted EBITDA divided by net revenues. See "Use of Non-GAAP
Financial Measures" and "Reconciliations of GAAP and non-GAAP
results" elsewhere in this earnings release.
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Financial and Operational Results for the Nine Months Ended
September 30,
2020
Net Revenues
Net revenues were RMB2,185.6
million (US$321.9 million), a
decrease of 2.6% from RMB2,244.6
million for the nine months ended September 30, 2019. This decrease was primarily
due to the adverse impact of the COVID-19 pandemic on the demand
for study-abroad tutoring services.
Net revenues of K-12 tutoring services increased by 15.0% to
RMB1,552.3 million (US$228.6 million) from RMB1,349.9 million for the nine months ended
September 30, 2019. For the nine
months ended September 30, 2020, the
student enrollments of K-12 tutoring services, including group
class, personalized tutoring and full-time tutoring services,
reached 1,992,759.
Net revenues of Puxin Online School significantly increased by
558.3% to RMB79.5 million
(US$11.7 million) from RMB12.1 million for the nine months ended
September 30, 2019. Student
enrollments of Puxin Online School were 890,664 for the nine months
ended September 30, 2020.
Net revenues of study-abroad tutoring services decreased by
37.3% to RMB553.8 million
(US$81.6 million) from RMB882.6 million for the nine months ended
September 30, 2019. This was
primarily due to a continued impact from the global spread of the
COVID-19 pandemic in major countries of the world.
Cost of Revenues
Cost of revenues decreased by 0.8% to RMB1,154.2 million (US$170.0 million) from RMB1,163.0 million for the nine months ended
September 30, 2019, primarily due to
a decrease in staff cost which reflected the decreased demand for
study-abroad services attributable to the COVID-19 pandemic. Cost
of revenues, excluding share-based compensation expenses, decreased
by 0.6% to RMB1,152.4 million
(US$169.7 million) from RMB1,159.5 million for the nine months ended
September 30, 2019.
Gross Profit and Gross Margin
Gross profit was RMB1,031.4
million (US$151.9 million), a
decrease of 4.6% from RMB1,081.6
million for the nine months ended September 30, 2020. Gross margin was 47.2%,
compared to 48.2% for the nine months ended September 30, 2019.
Operating Expenses
Total operating expenses decreased by 20.7% to RMB1,067.5 million (US$157.2 million) from RMB1,345.3 million for the nine months ended
September 30, 2019.
Selling expenses decreased by 1.5% to RMB757.7 million (US$111.6
million) from RMB769.2 million
for the nine months ended September 30,
2019. Selling expenses, excluding share-based compensation
expenses, decreased by 0.6% to RMB747.4 million (US$110.1 million) from RMB751.8 million for the nine months ended
September 30, 2019, primarily due to
a decrease in sales staff's performance-based compensation
attributable to decreased demand for our study-abroad services
caused by the COVID-19 pandemic, which was partially offset by
increased marketing expenses attributable to marketing and
promotion activities for our online business.
General and administrative expenses decreased by 46.2% to
RMB309.8 million (US$45.6 million) from RMB576.2 million during the same period of 2019.
General and administrative expenses, excluding share-based
compensation expenses, decreased by 20.2% to RMB300.2 million (US$44.2
million) from RMB376.2 million
for the nine months ended September 30,
2019. The decreases were primarily due to our cost control
measures to improve operation efficiency.
Total share-based compensation expenses allocated to related
cost of revenues and operating expenses decreased by 90.2% to
RMB21.6 million (US$3.2 million) from RMB220.8 million for the nine months ended
September 30, 2019. The decrease was
primarily due to a decrease in the number of options vested in
the first nine months of 2020 compared to the same period of
2019.
Operating Loss and Operating Margin
Operating loss decreased by 86.3% to RMB36.1 million (US$5.3
million) from an operating loss of RMB263.7 million for the nine months ended
September 30, 2019. Operating margin
was (1.7)% compared to (11.7)% for the same period in 2019.
Operating income of K-12 tutoring services was RMB140.0 million (US$20.6
million) compared to an operating loss of RMB22.7 million in the same period
of 2019. Operating margin of K-12 tutoring services improved
to 9.0% from (1.7)% in the same period
of 2019.
Adjusted operating loss decreased by 66.3% to RMB14.4 million (US$2.1
million) from an adjusted operating loss of RMB42.9 million for the nine months ended
September 30, 2019.
Adjusted operating margin was (0.7)%, compared to (1.9)% in the
same period of the prior year.
Net Income (Loss)
Net income was RMB33.7 million
(US$5.0 million), compared to a net
loss of RMB409.6 million for the nine
months ended September 30, 2019.
Net income of K-12 tutoring services was RMB219.0 million (US$32.3
million), compared to net loss of RMB116.0 million for the nine months ended
September 30, 2019.
Net income attributable to Puxin Limited was RMB36.6 million (US$5.4
million), compared to a net loss attributable to Puxin
Limited of RMB409.7 million for the
nine months ended September 30, 2019.
Basic and diluted net income per ADS attributable to Puxin Limited
were RMB0.42 (US$0.06) and RMB0.42 (US$0.06),
compared to basic and diluted net loss per ADS attributable to
Puxin Limited of RMB4.82 and
RMB4.82 during the same period of
2019.
Adjusted net income attributable to Puxin Limited was
RMB79.2 million (US$11.7 million), compared to an adjusted net
loss attributable to Puxin Limited of RMB91.0 million for the nine months ended
September 30, 2019. Adjusted basic
and diluted net income per ADS attributable to Puxin Limited were
RMB0.91 (US$0.13) and RMB0.89 (US$0.13),
compared to adjusted basic and diluted net loss per ADS
attributable to Puxin Limited of RMB1.07 and RMB1.07
during the same period of 2019.
EBITDA
EBITDA was RMB145.4 million
(US$21.4 million), compared to
RMB(280.9) million for the nine
months ended September 30, 2019.
EBITDA margin was 6.7% for the nine months ended September 30, 2020, compared to (12.5)% in the
same period in 2019
Adjusted EBITDA was RMB188.0
million (US$27.7 million), an
increase of 396.7% from RMB37.8
million for the nine months ended September 30, 2019.
Adjusted EBITDA margin was 8.6%, compared to 1.7% in the same
period in 2019.
Cash and Current Bank Balances
As of September 30, 2020, the
Company had an aggregate amount of cash and cash equivalents and
the current portion of restricted cash of RMB560.1 million (US$82.5
million), compared to RMB606.3
million as of December 31,
2019. The current portion of restricted cash consisted
primarily of deposits with Chinese commercial banks as collateral
for our bank borrowings within one-year term.
Business Outlook
For the fourth quarter ended December 31,
2020, based on the information available as of the date of
this press release, the Company expects net revenues to be between
RMB730.4 million and RMB773.4 million, which represents a decrease of
15% to 10% year-over-year. These forecasts reflect the Company's
current and preliminary views on the market and operational
conditions, which are subject to change.
Conference Call Information
Puxin's management team will hold a conference call on
November 19, 2020, at 7:00 AM U.S. Eastern Time (or 8:00 PM on the same day, Beijing/Hong Kong Time) following the
quarterly results announcement. Participants may access the call by
dialing the following numbers:
International:
+1-412-902-4272
Mainland China: 4001-201203
US:
+1-888-346-8982
Hong Kong:
+852-301-84992
Passcode: Puxin
Please dial in 10 minutes before the call is scheduled to begin.
When prompted, ask to be connected to the Puxin Limited Call.
Participants will be required to state their name and company upon
entering the call.
A replay of the conference call will be accessible two hours
after the conclusion of the conference call through November 26, 2020 by dialing the following
numbers:
International:
+1-412-317-0088
US:
+1-877-344-7529
Passcode: 10149922
A live webcast and archive of the conference call will be
available on the Investor Relations section of Puxin's website at
http://ir.pxjy.com/.
Exchange Rate
The Company's business is primarily conducted in China and all of the revenues are denominated
in Renminbi ("RMB"). This announcement contains translations of
certain RMB amounts into U.S. dollars ("USD" or "US$") at specified
rates solely for the convenience of the readers. Unless otherwise
noted, all translations from RMB to USD are made at the rate of
RMB 6.7896 to US$1.00, the exchange rate set forth in the H.10
statistical release of the Federal Reserve Board on September 30, 2020. No representation is made
that the RMB amounts could have been, or could be, converted,
realized or settled into US$ at that rate on September 30, 2020 or at any other rate.
Use of Non-GAAP Financial Measures
To supplement the Company's financial results presented in
accordance with U.S. GAAP, the Company also uses non-GAAP financial
measures, including adjusted operating income (loss), adjusted
operating margin, adjusted net income (loss) attributable to Puxin
Limited, EBITDA, adjusted EBITDA, EBITDA margin, adjusted EBITDA
margin, adjusted basic and diluted net income (loss) per ADS
attributable to Puxin Limited, as supplemental measures to review
and assess the Company's operating performance. Adjusted operating
income (loss) is defined as operating income (loss) excluding
share-based compensation expenses; adjusted operating margin is
defined as adjusted operating income (loss) divided by net
revenues; adjusted net income (loss) attributable to Puxin Limited
is defined as net income (loss) attributable to Puxin Limited
excluding share-based compensation expenses and gain (loss) on
changes in fair value of derivative liabilities; EBITDA is
defined as net income (loss) excluding depreciation, amortization,
interest expense, interest income and income tax expenses
(benefits); adjusted EBITDA is defined as net income (loss)
excluding depreciation, amortization, interest expense, interest
income, income tax expenses (benefits), share-based compensation
expenses and gain (loss) on changes in fair value of derivative
liabilities; EBITDA margin is defined as EBITDA divided by net
revenues; adjusted EBITDA margin is defined as adjusted EBITDA
divided by net revenues; adjusted basic and diluted net income
(loss) per ADS attributable to Puxin Limited are defined as basic
and diluted net income (loss) per ADS attributable to Puxin Limited
excluding share-based compensation expenses and gain (loss) on
changes in fair value of derivative liabilities.
The Company believes that these non-GAAP financial measures
provide useful information about the Company's operating results,
enhance the overall understanding of the Company's past performance
and future prospects and allow for greater visibility with respect
to key metrics used by the Company's management in its financial
and operational decision-making.
Non-GAAP financial measures are not defined under U.S. GAAP and
are not presented in accordance with U.S. GAAP. These non-GAAP
financial measures have limitations as analytical tools, and when
assessing the Company's operating performance, investors should not
consider them in isolation. In addition, calculations of this
non-GAAP financial information may be different from calculations
used by other companies, and therefore comparability may be
limited.
The Company mitigates these limitations by reconciling the
non-GAAP financial measures to the most comparable U.S. GAAP
performance measures, all of which should be considered when
evaluating our performance.
For more information on this non-GAAP financial measure, please
see the table captioned "Reconciliations of GAAP and non-GAAP
results" set forth at the end of this press release.
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," "may," "would,"
"expect," "anticipate," "future," "intend," "aim," "plan,"
"believe," "estimate," "predict," "project," "continue,"
"confident" and similar statements. The Company 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 statements about the Company's
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that 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: its goals and strategies, its ability to achieve and
maintain profitability, its ability to attract and retain students
to enroll in its courses, its ability to effectively manage its
business expansion and successfully integrate businesses it
acquired, its ability to identify or pursue targets for
acquisitions, its ability to compete effectively against its
competitors, its ability to improve the content of its existing
courses or to develop new courses, and relevant government policies
and regulations relating to the Company's corporate structure,
business and industry. Further information regarding these and
other risks is included in the Company'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 the Company does not undertake any obligation to update such
information, except as required under applicable law.
About Puxin Limited
Puxin Limited (NYSE: NEW, "Puxin" or the "Company") is a
successful consolidator of the after-school education industry in
China. Puxin has a strong
acquisition and integration expertise to effectively improve
education quality and operational performance of acquired schools.
Puxin offers a full spectrum of K-12 and study-abroad tutoring
programs designed to help students achieve academic excellence, as
well as prepare for admission tests and applications for top
schools, universities and graduate programs in China and other countries. The Company has
developed a business model effectively combining strategic
acquisitions and organic growth achieved through successful
post-acquisition integration, which has differentiated the Company
from other after-school education service providers in China. For more information, please visit
http://www.pxjy.com/.
Contacts
Puxin Limited
Phone: +86-10-6269-8930
E-mail: ir@pxjy.com
ICA (Institutional Capital Advisory)
Mr. Kevin Yang
Phone: +86-21-8028-6033
E-mail: puxin@icaasia.com
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PUXIN LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
|
As of
December 31,
|
|
As of September
30,
|
|
2019
|
|
2020
|
2020
|
|
RMB
|
|
RMB
|
USD
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
256,763
|
|
67,850
|
9,993
|
|
Restricted cash,
current portion
|
349,540
|
|
492,246
|
72,500
|
|
Inventories
|
13,311
|
|
17,016
|
2,506
|
|
Prepaid expenses and
other current assets
|
117,148
|
|
161,464
|
23,781
|
|
Loan receivable,
current portion
|
191,230
|
|
207,442
|
30,553
|
|
Total current
assets
|
927,992
|
|
946,018
|
139,333
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Restricted cash,
non-current portion
|
36,727
|
|
33,062
|
4,870
|
|
Operating lease
right-of-use assets
|
1,045,941
|
|
909,176
|
133,907
|
|
Property, plant and
equipment, net
|
298,719
|
|
266,971
|
39,321
|
|
Intangible
assets
|
264,540
|
|
230,034
|
33,880
|
|
Goodwill
|
2,055,922
|
|
2,035,577
|
299,808
|
|
Deferred tax
assets
|
2,199
|
|
2,061
|
304
|
|
Rental
deposit
|
75,015
|
|
70,783
|
10,425
|
|
Other non-current
assets
|
-
|
|
59,400
|
8,749
|
|
TOTAL ASSETS
|
4,707,055
|
|
4,553,082
|
670,597
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accrued expenses and
other current liabilities (including accrued expenses and other
current liabilities of the consolidated VIE without recourse to the
Group of RMB930,674 and RMB716,928 as of December 31, 2019 and
September 30, 2020, respectively)
|
983,715
|
|
738,379
|
108,752
|
|
Income tax payable of
the consolidated VIE without recourse to the Group
|
21,248
|
|
20,557
|
3,028
|
|
Deferred revenue,
current portion (including deferred revenue, current portion of the
consolidated VIE without recourse to the Group of
RMB1,195,723 and RMB1,122,436 as of December 31, 2019 and
September 30, 2020, respectively)
|
1,205,609
|
|
1,131,788
|
166,694
|
|
Operating lease
liabilities, current portion (including operating lease
liabilities, current portion of the consolidated VIE without
recourse to the Group of RMB275,893 and RMB255,438 as of
December 31, 2019 and September 30, 2020, respectively)
|
276,877
|
|
255,438
|
37,622
|
|
Amounts due to
related parties, current portion (including amounts due to related
parties, current portion of the consolidated VIE without recourse
to the Group of RMB254 and RMB4,853 as of December 31, 2019 and
September 30, 2020, respectively)
|
1,451
|
|
4,853
|
715
|
|
Bank borrowings of
the consolidated VIE without recourse to the Group
|
318,600
|
|
555,900
|
81,875
|
|
Loans payable to
third parties, current portion (including loans payable to third
parties, current portion of the consolidated VIE without recourse
to the Group of RMB292,952 and RMB171,452 as of December 31,
2019 and September 30, 2020, respectively)
|
413,838
|
|
271,452
|
39,981
|
|
Promissory note,
current portion (including promissory note, current portion of the
consolidated VIE without recourse to the Group of RMB nil and
RMB nil as of December 31, 2019 and September 30, 2020,
respectively)
|
87,023
|
|
169,740
|
25,000
|
|
Total current
liabilities
|
3,308,361
|
|
3,148,107
|
463,667
|
|
PUXIN LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
|
|
|
As of
December 31,
|
|
As of September
30,
|
|
2019
|
|
2020
|
2020
|
|
RMB
|
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
Deferred revenue,
non-current portion of the consolidated VIE without recourse to the
Group
|
101,372
|
|
64,841
|
9,550
|
|
Deferred tax
liabilities of the consolidated VIE without recourse to the
Group
|
81,969
|
|
74,028
|
10,903
|
|
Franchise deposits of
the consolidated VIE without recourse to the Group
|
2,533
|
|
2,549
|
375
|
|
Operating lease
liabilities, non-current portion of the consolidated VIE without
recourse to the Group
|
693,505
|
|
572,822
|
84,368
|
|
Loan payable to third
parties, non-current portion (including loan payable to third
parties, non-current portion of the consolidated VIE without
recourse to the Group of RMB nil and RMB nil as of
December 31, 2019 and September 30, 2020,
respectively)
|
-
|
|
193,237
|
28,461
|
|
Promissory note,
non-current portion (including promissory note, non-current portion
of the consolidated VIE without recourse to the Group of RMB nil
and RMB nil as of December 31, 2019 and September 30,
2020, respectively)
|
87,022
|
|
-
|
-
|
|
Derivative
liabilities (including derivative liabilities of the consolidated
VIE without recourse to the Group of RMB nil and RMB nil as of
December 31, 2019 and September 30, 2020, respectively)
|
172,235
|
|
-
|
-
|
|
TOTAL
LIABILITIES
|
4,446,997
|
|
4,055,584
|
597,324
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Ordinary shares (par
value of USD0.00005 per share; 1,000,000,000 and 1,000,000,000 shares
authorized, 188,627,228 and
188,653,468 shares issued and 174,025,810 and 174,266,300 shares
outstanding as of
December 31, 2019 and September 30, 2020, respectively)
|
62
|
|
62
|
9
|
|
Additional paid-in
capital
|
2,175,652
|
|
2,389,985
|
352,007
|
|
Statutory
reserve
|
7,979
|
|
7,979
|
1,175
|
|
Accumulated other
comprehensive income
|
68,707
|
|
58,182
|
8,569
|
|
Accumulated
deficit
|
(1,991,220)
|
|
(1,954,618)
|
(287,884)
|
|
|
|
|
|
|
Total Puxin Limited
shareholders' equity
|
261,180
|
|
501,590
|
73,876
|
|
Non-controlling
interest
|
(1,122)
|
|
(4,092)
|
(603)
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
260,058
|
|
497,498
|
73,273
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
TOTAL SHAREHOLDERS' EQUITY
|
4,707,055
|
|
4,553,082
|
670,597
|
|
PUXIN LIMITED
NAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In
thousands of RMB and USD, except for share, per share and per ADS
data)
|
|
|
|
|
For the three
months ended September 30,
|
|
2019
|
|
2020
|
2020
|
|
RMB
|
|
RMB
|
USD
|
|
|
|
|
|
|
Net revenues
|
996,042
|
|
833,204
|
122,718
|
|
Cost of revenues
(including share-based compensation expenses of RMB954 and RMB518
for the three months ended September 30, 2019 and 2020,
respectively)
|
494,581
|
|
422,582
|
62,240
|
|
|
|
|
|
|
Gross profit
|
501,461
|
|
410,622
|
60,478
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling expenses
(including share-based compensation expenses of RMB4,861 and
RMB3,114 for the three months ended September 30, 2019 and
2020, respectively)
|
304,801
|
|
317,008
|
46,690
|
|
General and
administrative expenses (including share-based compensation
expenses of RMB4,843 and RMB2,819 for the three months ended
September 30, 2019 and 2020, respectively)
|
155,113
|
|
107,557
|
15,841
|
|
|
|
|
|
|
Total operating
expenses
|
459,914
|
|
424,565
|
62,531
|
|
|
|
|
|
|
Operating income
(loss)
|
41,547
|
|
(13,943)
|
(2,053)
|
|
|
|
|
|
|
Interest
expense
|
13,773
|
|
19,450
|
2,865
|
|
Interest
income
|
6,925
|
|
11,120
|
1,638
|
|
Foreign exchange gain
(loss)
|
318
|
|
(383)
|
(56)
|
|
Gain on changes in fair
value of derivative liabilities
|
912
|
|
41,366
|
6,093
|
|
Other income,
net
|
-
|
|
23,804
|
3,506
|
|
Income before income
taxes
|
35,929
|
|
42,514
|
6,263
|
|
Income tax
expenses
|
2,187
|
|
86
|
13
|
|
Net income
|
33,742
|
|
42,428
|
6,250
|
|
Less: Net income
(loss) attributable to non-controlling interest
|
32
|
|
(1,039)
|
(153)
|
|
Net income attributable
to Puxin Limited
|
33,710
|
|
43,467
|
6,403
|
|
|
|
|
|
|
Net income per share
attributable to Puxin Limited
|
|
|
|
|
|
- Basic
|
0.19
|
|
0.25
|
0.04
|
|
- Diluted
|
0.19
|
|
0.24
|
0.04
|
|
Net income per ADS
attributable to Puxin Limited
|
|
|
|
|
|
- Basic
|
0.38
|
|
0.50
|
0.08
|
|
- Diluted
|
0.38
|
|
0.48
|
0.08
|
|
|
|
|
|
|
Weighted average shares
used in calculating basic net income per share
|
173,938,756
|
|
174,220,018
|
174,220,018
|
|
|
|
|
|
|
Weighted average shares
used in calculating diluted net income per share
|
177,818,968
|
|
178,394,583
|
178,394,583
|
|
|
|
|
|
|
Note: Each ADS
represents two ordinary shares.
|
|
PUXIN LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
(In thousands of RMB
and USD)
|
|
|
|
For the three
months ended September 30,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
|
Net income
|
33,742
|
42,428
|
6,250
|
|
|
|
|
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
Change in
cumulative foreign currency translation adjustments
|
7,560
|
(12,506)
|
(1,842)
|
|
Total comprehensive
income
|
41,302
|
29,922
|
4,408
|
|
Less: comprehensive
income (loss) attributable to non-controlling interest
|
32
|
(1,039)
|
(153)
|
|
|
|
|
|
Total comprehensive
income attributable to Puxin Limited
|
41,270
|
30,961
|
4,561
|
|
PUXIN
LIMITED
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
For the nine
months ended September 30,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
Net revenues
|
2,244,639
|
2,185,602
|
321,904
|
|
Cost of revenues
(including share-based compensation expenses of RMB3,534 and
RMB1,772 for the nine months ended September 30, 2019 and 2020,
respectively)
|
1,163,008
|
1,154,210
|
169,997
|
|
|
|
|
|
Gross profit
|
1,081,631
|
1,031,392
|
151,907
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Selling expenses
(including share-based compensation expenses of RMB17,326 and
RMB10,306 for the nine months ended September 30, 2019 and
2020, respectively)
|
769,174
|
757,670
|
111,593
|
|
General and
administrative expenses (including share-based compensation
expenses of RMB199,914 and RMB9,571 for the nine months ended
September 30, 2019 and 2020, respectively)
|
576,161
|
309,818
|
45,631
|
|
|
|
|
|
Total operating
expenses
|
1,345,335
|
1,067,488
|
157,224
|
|
|
|
|
|
Operating
loss
|
(263,704)
|
(36,096)
|
(5,317)
|
|
|
|
|
|
Interest
expense
|
54,005
|
60,961
|
8,979
|
|
Interest
income
|
11,835
|
34,936
|
5,146
|
|
Foreign exchange gain
(loss)
|
308
|
(262)
|
(39)
|
|
Loss on changes in fair
value of derivative liabilities
|
97,967
|
20,917
|
3,081
|
|
Other income,
net
|
-
|
59,766
|
8,803
|
|
Gain on disposal of
subsidiaries
|
-
|
60,968
|
8,980
|
|
Impairment loss on
intangible assets
|
-
|
4,100
|
604
|
|
(Loss) income before
income taxes
|
(403,533)
|
33,334
|
4,909
|
|
Income tax expenses
(benefits)
|
6,104
|
(331)
|
(49)
|
|
|
|
|
|
Net (loss)
income
|
(409,637)
|
33,665
|
4,958
|
|
Less: Net income (loss)
attributable to non-controlling interest
|
68
|
(2,937)
|
(433)
|
|
|
|
|
|
Net (loss) income
attributable to Puxin Limited
|
(409,705)
|
36,602
|
5,391
|
|
|
|
|
|
Net (loss) income per
share attributable to Puxin Limited
|
|
|
|
|
- Basic and
diluted
|
(2.41)
|
0.21
|
0.03
|
|
Net (loss) income per
ADS attributable to Puxin Limited
|
|
|
|
|
- Basic and
diluted
|
(4.82)
|
0.42
|
0.06
|
|
|
|
|
|
Weighted average shares
used in calculating basic net
(loss) income per
share
|
169,863,123
|
174,115,816
|
174,115,816
|
|
Weighted average shares
used in calculating diluted net
(loss) income per
share
|
169,863,123
|
178,109,602
|
178,109,602
|
|
|
|
|
|
Note: Each ADS
represents two ordinary shares.
|
|
PUXIN
LIMITED
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands of RMB
and USD)
|
|
|
|
For the nine
months ended September 30,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
(409,637)
|
33,665
|
4,958
|
|
|
|
|
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
Change in
cumulative foreign currency translation adjustments
|
5,479
|
(10,525)
|
(1,550)
|
|
Total comprehensive
(loss) income
|
(404,158)
|
23,140
|
3,408
|
|
Less: comprehensive
income (loss) attributable to non-controlling interest
|
68
|
(2,937)
|
(433)
|
|
|
|
|
|
Total comprehensive
(loss) income attributable to Puxin Limited
|
(404,226)
|
26,077
|
3,841
|
|
PUXIN
LIMITED
RECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
|
For the three months
ended September 30,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
Operating income
(loss)
|
41,547
|
(13,943)
|
(2,053)
|
|
Add: Share-based
compensation expenses
|
10,658
|
6,451
|
950
|
|
Adjusted operating
income (loss)
|
52,205
|
(7,492)
|
(1,103)
|
|
Adjusted operating
margin
|
5.2%
|
(0.9%)
|
(0.9%)
|
|
Net income attributable
to Puxin Limited
|
33,710
|
43,467
|
6,403
|
|
Add: Share-based
compensation expenses
|
10,658
|
6,451
|
950
|
|
Less: Gain on changes
in fair value of derivative liabilities
|
912
|
41,366
|
6,093
|
|
Adjusted net income
attributable to Puxin Limited
|
43,456
|
8,552
|
1,260
|
|
|
|
|
|
|
Net income
|
33,742
|
42,428
|
6,250
|
|
Add: Income tax
expenses
|
2,187
|
86
|
13
|
|
Depreciation of property,
plant and equipment
|
18,001
|
18,416
|
2,712
|
|
Amortization of intangible
assets
|
10,034
|
8,202
|
1,208
|
|
Interest expense
|
13,773
|
19,450
|
2,865
|
|
Less: Interest
income
|
6,925
|
11,120
|
1,638
|
|
EBITDA
|
70,812
|
77,462
|
11,410
|
|
EBITDA
margin
|
7.1%
|
9.3%
|
9.3%
|
|
Add: Share-based
compensation expenses
|
10,658
|
6,451
|
950
|
|
Less: Gain on changes
in fair value of derivative liabilities
|
912
|
41,366
|
6,093
|
|
Adjusted
EBITDA
|
80,558
|
42,547
|
6,267
|
|
Adjusted EBITDA
margin
|
8.1%
|
5.1%
|
5.1%
|
|
Net income per ADS
attributable to Puxin Limited
|
|
|
|
|
-
Basic
|
0.38
|
0.50
|
0.08
|
|
-
Diluted
|
0.38
|
0.48
|
0.08
|
|
|
|
|
|
|
|
Adjusted net income
per ADS attributable to Puxin Limited
|
|
|
|
|
- Basic
|
0.50
|
0.10
|
0.01
|
|
- Diluted
|
0.49
|
0.10
|
0.01
|
|
|
|
|
|
Weighted average
shares used in calculating basic adjusted net income per share
|
173,938,756
|
174,220,018
|
174,220,018
|
|
Weighted average
shares used in calculating diluted adjusted net income per share
|
177,818,968
|
178,394,583
|
178,394,583
|
|
Note: Each ADS
represents two ordinary shares.
|
|
PUXIN
LIMITED
RECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS
(In thousands of RMB
and USD, except for share, per share and per ADS data)
|
|
|
|
For the nine months
ended September 30,
|
|
2019
|
2020
|
2020
|
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
Operating
loss
|
(263,704)
|
(36,096)
|
(5,317)
|
|
Add: Share-based
compensation expenses
|
220,774
|
21,649
|
3,189
|
|
Adjusted operating
loss
|
(42,930)
|
(14,447)
|
(2,128)
|
|
Adjusted operating
margin
|
(1.9%)
|
(0.7%)
|
(0.7%)
|
|
Net (loss) income
attributable to Puxin Limited
|
(409,705)
|
36,602
|
5,391
|
|
Add: Share-based
compensation expenses
|
220,774
|
21,649
|
3,189
|
|
Loss on changes in fair
value of derivative liabilities
|
97,967
|
20,917
|
3,081
|
|
Adjusted net (loss)
income attributable to Puxin Limited
|
(90,964)
|
79,168
|
11,661
|
|
|
|
|
|
|
Net (loss)
income
|
(409,637)
|
33,665
|
4,958
|
|
Add: Income tax
expenses (benefits)
|
6,104
|
(331)
|
(49)
|
|
Depreciation of property,
plant and equipment
|
54,664
|
60,240
|
8,872
|
|
Amortization of intangible
assets
|
25,803
|
25,801
|
3,800
|
|
Interest expense
|
54,005
|
60,961
|
8,979
|
|
Less: Interest
income
|
11,835
|
34,936
|
5,146
|
|
EBITDA
|
(280,896)
|
145,400
|
21,414
|
|
EBITDA
margin
|
(12.5%)
|
6.7%
|
6.7%
|
|
Add: Share-based
compensation expenses
|
220,774
|
21,649
|
3,189
|
|
Loss on changes in fair
value of derivative liabilities
|
97,967
|
20,917
|
3,081
|
|
Adjusted
EBITDA
|
37,845
|
187,966
|
27,684
|
|
Adjusted EBITDA
margin
|
1.7%
|
8.6%
|
8.6%
|
|
Net (loss) income per
ADS attributable to Puxin Limited
|
|
|
|
|
- Basic and
diluted
|
(4.82)
|
0.42
|
0.06
|
|
|
|
|
|
|
|
Adjusted net (loss)
income per ADS attributable to Puxin Limited
|
|
|
|
|
- Basic
|
(1.07)
|
0.91
|
0.13
|
|
- Diluted
|
(1.07)
|
0.89
|
0.13
|
|
|
|
|
|
Weighted average
shares used in calculating basic adjusted net (loss) income per share
|
169,863,123
|
174,115,816
|
174,115,816
|
|
Weighted average
shares used in calculating diluted adjusted net (loss) income per share
|
169,863,123
|
178,109,602
|
178,109,602
|
|
Note: Each ADS
represents two ordinary shares.
|
View original
content:http://www.prnewswire.com/news-releases/puxin-limited-announces-third-quarter-2020-unaudited-financial-results-301177018.html
SOURCE Puxin Limited