ATA Announces Results for Fiscal Second Quarter 2009
Second Quarter 2009 Highlights
-- Net revenues increased by 3.9% year-over-year to approximately RMB51.7
million (US$7.6 million).
-- Gross profit increased by 15.7% year-over-year to approximately RMB34.4
million (US$5.1 million).
-- Income from operations decreased by 12.2% year-over-year to
approximately RMB8.8 million (US$1.3 million).
-- Net income decreased by 10.3% year-over-year to approximately RMB8.3
million (US$1.2 million).
-- Net income excluding share-based compensation expense and foreign
currency exchange gain (losses) (non-GAAP) was flat at approximately
RMB9.7 million (US$1.4 million) year over year.
-- Basic and diluted earnings per common share were RMB0.18 (US$0.03) and
RMB0.18 (US$0.03), respectively, and basic and diluted earnings per
ADS were RMB0.36 (US$0.06) and RMB0.36 (US$0.06), respectively. Basic
and diluted earnings per common share excluding share-based
compensation expense and foreign currency exchange gain (losses)
(non-GAAP) were RMB0.21 (US$0.03) and RMB0.21 (US$0.03), respectively,
and basic and diluted earnings per ADS excluding share-based
compensation expense and foreign currency exchange gain (losses)
(non-GAAP) were RMB0.41 (US$0.06) and RMB0.41 (US$0.06), respectively.
Each ADS represents two common shares of the Company.
-- For the quarter, ATA delivered approximately 1.5 million tests which
was flat compared to the same period last year. In addition, average
revenue per test decreased to RMB9.8 from RMB13.4 in the same period
last year because the China Banking Association tests were not offered
in second quarter 2009.
"Our core business has proven to be robust in this difficult global
economic environment, and on a comparable pro forma basis -- that is, adjusted
for changes to the scheduling of the China Banking Association test -- we
continued to grow at a fast rate in the second quarter of fiscal year 2009,"
said
ATA's Chief Financial Officer,
Financial Results for the Second Quarter 2009
For the Second Quarter 2009, net revenues were
The overall number of tests the Company delivered decreased by 9.2%
year-over-year to approximately 1.5 million in the Second Quarter 2009, while
the average revenue per test delivered dropped to
Operating expenses increased by 29.8% year-over-year to
Income from operations for the Second Quarter 2009 decreased by 12.2% year
over year to approximately
Net income for the Second Quarter 2009 decreased by 10.3% to approximately
Net income excluding share-based compensation expense and foreign currency
exchange gain (non-GAAP) was
Other Operating Data
As of
The number of weighted average ADSs used to calculate basic and diluted
earnings per ADS for the quarter ended
Third Quarter 2009 and Full Year Fiscal Year 2009 Guidance
For the fiscal third quarter 2009, ATA forecasts net revenues will be in
the range of
Conference Call
The Company will host a conference call at
If you are unable to participate in the call at this time, a replay will
be available on
This conference call will be broadcast live over the Internet and can be accessed by all interested parties on ATA Inc.'s website at http://www.ata.net.cn . To listen to the live webcast, please go to ATA Inc.'s website at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on ATA Inc.'s website for 90 days.
About ATA Inc.
ATA is the leading provider of computer-based testing services in
Cautionary Note Regarding Forward-looking Statements
This announcement contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, and as defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
can be identified by terminology such as "look forward to," "outlook,"
"forecast," "will," "expect," "anticipate," "future," "intend," "plan,"
"believe," "estimate" and similar terminology and include, among other things,
the Company's guidance relating to anticipated financial and operating results
for the fiscal quarter ending
The forward-looking statements in this release involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the markets in which it operates. The Company undertakes no obligation to update forward-looking statements, which speak only of the Company's views as of the date of this release, to reflect subsequent events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, the Company cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
About Non-GAAP Financial Measures
To supplement ATA's consolidated financial information presented in accordance with U.S. generally accepted accounting principles ("GAAP"), ATA uses the following measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission: net income excluding share-based compensation expenses and foreign currency exchange gain (losses) and basic and diluted earnings per ADS excluding share-based compensation expenses and foreign currency exchange gain (losses). The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Unaudited reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.
ATA believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses and foreign currency exchange gain (losses), which may not be indicative of its operating performance from a cash perspective. ATA believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to ATA's historical performance and liquidity. ATA computes its non-GAAP financial measures using a consistent method from quarter to quarter. ATA believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP net income excluding share-based compensation expenses and basic and diluted earnings per share and per ADS excluding share-based compensation expenses is that share-based compensation charges have been and are expected to continue to be for the foreseeable future a significant recurring expense in ATA's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying table captioned "Reconciliations of Non-GAAP measures to the most comparable GAAP measures" set forth at the end this release, has more details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures used by ATA.
Currency Convenience Translation
The Company's financial information is stated in RMB. The translation of
RMB amounts for the Second Quarter 2009 into
For further information, please contact:
ATA Inc.
Carl Yeung, CFO
Tel: +86-10-6518-1122 ext 5107
Email: ir@ata.net.cn
CCG Elite Investor Relations
Crocker Coulson, President
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Ed Job, CFA
Tel: +1-646-213-1914
Email: ed.job@ccgir.com
ATA INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS
March 31, September 30, September 30,
2008 2008 2008
ASSETS
Current assets:
Cash 332,196,672 345,956,480 50,951,631
Accounts receivable, net 63,502,408 78,680,650 11,587,895
Inventories 2,951,966 2,351,069 346,260
Prepaid expenses and other
current assets 4,657,608 9,078,451 1,337,052
Total current assets 403,308,654 436,066,650 64,222,838
Property and equipment, net 10,668,300 12,307,025 1,812,549
Goodwill 6,880,123 6,880,123 1,013,288
Other assets 15,776,667 18,158,657 2,674,363
Total assets 436,633,744 473,412,455 69,723,038
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accrued expenses and other
payables 29,822,313 43,933,676 6,470,445
Deferred revenues 36,707,916 37,972,651 5,592,520
Total current liabilities 66,530,229 81,906,327 12,062,965
Deferred revenues 7,025,971 6,233,527 918,059
Total liabilities 73,556,200 88,139,854 12,981,024
Shareholders' equity:
Common shares: 3,656,210 3,503,619 516,005
Treasury shares (16,106,940) -- --
Receivable from shareholders -- (5,226,173) (769,698)
Additional paid-in capital 498,374,024 498,120,764 73,362,018
Accumulated other
comprehensive loss (7,933,512) (17,006,211) (2,504,634)
Accumulated deficit (114,912,238) (94,119,398) (13,861,677)
Total shareholders' equity 363,077,544 385,272,601 56,742,014
Total liabilities and
shareholders' equity 436,633,744 473,412,455 69,723,038
Three-month Period Ended
September 30, June 30, September 30, September 30,
2007 2008 2008 2008
RMB RMB RMB USD
Net revenues 49,778,999 68,331,931 51,696,431 7,613,725
Testing
services 21,383,383 53,885,098 14,175,165 2,087,684
Test-based
educational
services 10,201,565 11,024,193 10,937,400 1,610,834
Test
preparation
and training
solutions 15,956,775 508,088 21,215,476 3,124,564
Other revenue 2,237,276 2,914,552 5,368,390 790,643
Cost of
revenues 20,060,241 29,163,638 17,321,775 2,551,109
Gross profit 29,718,758 39,168,293 34,374,656 5,062,616
Operating
expenses:
Research and
development 2,735,526 3,287,178 4,778,038 703,698
Sales and
marketing 6,166,789 5,961,055 6,908,588 1,017,480
General and
administrative 10,815,611 12,218,300 13,911,591 2,048,866
Total
operating
expenses 19,717,926 21,466,533 25,598,217 3,770,044
Income from
operations 10,000,832 17,701,760 8,776,439 1,292,572
Gain from
sale of an
affiliate 2,837,451 -- -- --
Subsidy
income -- -- 2,000,000 294,555
Interest
income 149,365 190,472 61,664 9,082
Foreign
currency
exchange gain
(losses), net (94,307) 609,647 135,115 19,899
Earnings
before income
taxes 12,893,341 18,501,879 10,973,218 1,616,108
Income tax
expense (3,592,213) (6,054,172) (2,628,085) (387,058)
Net income 9,301,128 12,447,707 8,345,133 1,229,050
Basic
earnings per
common share 0.42 0.28 0.18 0.03
Diluted
earnings per
common share 0.25 0.27 0.18 0.03
Basic
earnings per
ADS 0.84 0.56 0.36 0.06
Diluted
earnings per
ADS 0.50 0.54 0.36 0.06
Three-month Period Ended
September 30, September 30,
2007 2008
RMB RMB
GAAP net income 9,301,128 8,345,133
Share-based compensation
expenses 496,705 1,447,324
Foreign currency exchange (gain)
losses, net 94,307 (135,115)
Non-GAAP net income 9,892,140 9,657,342
GAAP earnings per ADS:
Basic 0.84 0.36
Diluted 0.50 0.36
Share-based compensation
expenses per ADS:
Basic 0.05 0.06
Diluted 0.03 0.06
Foreign currency exchange (gain)
losses per
ADS:
Basic 0.01 (0.01)
Diluted 0.01 (0.01)
Non-GAAP earnings per ADS:
Basic 0.90 0.41
Diluted 0.54 0.41
Non-GAAP earnings per common
share:
Basic 0.45 0.21
Diluted 0.27 0.21
SOURCE ATA Inc.
Released November 10, 2008