closeATA Announces Results for First Fiscal Quarter 2010
First Quarter 2010 Highlights
-- Net revenues increased by 16.8% year-over-year to approximately RMB79.8
million (US$11.7 million).
-- Gross profit increased by 13.9% year-over-year to approximately RMB44.6
million (US$6.5 million).
-- Income from operations decreased by 12.4% year-over-year to
approximately RMB15.5 million (US$2.3 million).
-- Net income increased by 1.9% year-over-year to approximately RMB12.7
million (US$1.9 million).
-- Net income excluding share-based compensation expense and foreign
currency exchange gain (losses) (non-GAAP) increased by 2.8%
year-over-year to approximately RMB14.1 million (US$2.1 million).
-- Basic and diluted earnings per ADS were RMB0.56 (US$0.08) and RMB0.56
(US$0.08), respectively. Basic and diluted earnings per ADS excluding
share-based compensation expense and foreign currency exchange gain
(losses) (non-GAAP) were RMB0.62 (US$0.09) and RMB0.62 (US$0.09),
respectively. Each ADS represents two common shares of the Company.
-- For the quarter, ATA delivered approximately 2.2 million tests, an
increase of 49.5% year-over-year. In addition, average revenue per test
decreased to RMB28.9 from RMB36.0 in the same period last year.
"We are pleased with our results for the quarter, as we were able to
deliver double-digit year-over-year revenue growth despite a challenging
economic environment," commented
ATA's Chief Financial Officer,
Financial Results for the First Quarter 2010
For First Quarter 2010, net revenues were
The overall number of tests delivered increased by 49.5% year-over-year to
approximately 2.2 million in the quarter, while the average revenue per test
delivered decreased to
Gross profit increased by 13.9% year-over-year to
Operating expenses increased by 35.5% year-over-year to
Headcount expanded by 140 to 492 in First Quarter 2010 from 352 in the first quarter of fiscal year 2009 to support the operational continuity of the JDX business following completion of our acquisition of it and the business development of TOEIC, HR Select and our Cambridge Young Learners English online tutorials. The increase in salaries and compensation from the additional headcount has been mainly allocated to research and development, sales and marketing, and general and administrative expenses.
Income from operations decreased by 12.4% year-over-year to approximately
Net income for First Quarter 2010 increased by 1.9% to
Net income excluding share-based compensation expense and foreign currency
exchange gain (losses) (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
Second Fiscal Quarter 2010 and Full Year Fiscal Year 2010 Guidance
For the fiscal second quarter 2010, ATA forecasts net revenues will be in
the range of
Adjustments to Previously Released 2009 Fourth Quarter Results
The Company made several adjustments during its financial closing
procedures for fiscal year 2009 which impacted its results of operations for
the fourth quarter of fiscal year 2009. After the adjustments, net revenues
were
Other Announcements:
On
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 gains (losses) and basic and diluted earnings per ADS excluding share-based compensation expenses and foreign currency exchange gains (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 gains (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 table captioned "Unaudited 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 first quarter of 2010 into
For more information, please contact:
ATA Inc.
Carl Yeung, CFO
Phone: +86-10-6518-1122 x5107
Email: ir@ata.net.cn
CCG Investor Relations
Crocker Coulson, President
Phone: +1-646-213-1915
Ed Job, CFA
Phone: +1-646-213-1914
Email: ed.job@ccgir.com
ATA INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, June 30, June 30,
2009 2009 2009
RMB RMB USD
ASSETS
Current assets:
Cash 310,503,071 301,814,681 44,188,264
Accounts receivable, net 71,076,794 78,927,592 11,555,678
Inventories 2,287,260 2,262,522 331,253
Prepaid expenses and other current
assets 15,134,804 15,179,890 2,222,466
Total current assets 399,001,929 398,184,685 58,297,661
Property and equipment, net 20,987,472 21,547,734 3,154,774
Goodwill 23,422,850 23,422,850 3,429,307
Intangible assets, net 25,994,261 25,297,344 3,703,749
Other assets 1,838,544 2,603,761 381,213
Total assets 471,245,056 471,056,374 68,966,704
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accrued expenses and other payables 44,950,280 52,746,267 7,722,507
Deferred revenues 40,238,256 21,707,889 3,178,222
Total current liabilities 85,188,536 74,454,156 10,900,729
Deferred revenues 5,626,153 3,780,299 553,468
Deferred tax liabilities 189,583 194,062 28,412
Total liabilities 91,004,272 78,428,517 11,482,609
Shareholders' equity:
Common shares 3,503,619 3,503,619 512,960
Treasury shares (10,126,861) (16,677,623) (2,441,747)
Receivable from shareholders (5,226,173) -- --
Additional paid-in capital 500,350,068 501,628,024 73,442,655
Accumulated other comprehensive
loss (16,157,846) (16,414,389) (2,403,208)
Accumulated deficit (92,102,023) (79,411,774) (11,626,565)
Total shareholders' equity 380,240,784 392,627,857 57,484,095
Total liabilities and shareholders'
equity 471,245,056 471,056,374 68,966,704
ATA INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three-month Period Ended
June 30, March 31, June 30, June 30,
2008 2009 2009 2009
RMB RMB RMB USD
Net revenues 68,331,931 29,676,892 79,802,924 11,683,834
Testing services 53,885,098 17,755,644 63,651,285 9,319,095
Test-based educational
services 11,024,193 8,457,723 9,293,623 1,360,666
Test preparation and
training solutions 508,088 904,610 1,549,421 226,849
Other revenue 2,914,552 2,558,915 5,308,595 777,224
Cost of revenues 29,163,638 16,931,946 35,198,516 5,153,365
Gross profit 39,168,293 12,744,946 44,604,408 6,530,469
Operating expenses:
Research and development 3,287,178 4,217,381 5,768,559 844,567
Sales and marketing 5,961,055 4,238,377 8,399,617 1,229,776
General and
administrative 12,218,300 17,277,168 14,926,414 2,185,355
Total operating expenses 21,466,533 25,732,926 29,094,590 4,259,698
Income (loss) from
operations 17,701,760 (12,987,980) 15,509,818 2,270,771
Interest income 190,472 50,345 179,902 26,339
Foreign currency exchange
gain (loss), net 609,647 (3,873) (169,731) (24,850)
Earnings (loss) before
income taxes 18,501,879 (12,941,508) 15,519,989 2,272,260
Income tax benefit
(expense) (6,054,172) 1,061,872 (2,829,740) (414,298)
Net income (loss) 12,447,707 (11,879,636) 12,690,249 1,857,962
Basic earnings (loss) per
common share 0.28 (0.26) 0.28 0.04
Diluted earnings (loss)
per common share 0.27 (0.26) 0.28 0.04
Basic earnings (loss) per
ADS 0.56 (0.52) 0.56 0.08
Diluted earnings per
(loss) ADS 0.54 (0.52) 0.56 0.08
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES TO THE MOST COMPARABLE
GAAP MEASURES
Three-month Period Ended
June 30, June 30,
2008 2009
RMB RMB
GAAP net income 12,447,707 12,690,249
Share-based compensation expenses 1,908,875 1,277,956
Foreign currency exchange (gain)
losses (609,647) 169,731
Non-GAAP net income 13,746,935 14,137,936
GAAP earnings per ADS:
Basic 0.56 0.56
Diluted 0.54 0.56
Share-based compensation expenses per
ADS:
Basic 0.07 0.06
Diluted 0.07 0.06
Foreign currency exchange (gain)
losses per ADS:
Basic (0.03) 0.01
Diluted (0.03) 0.01
Non-GAAP earnings per ADS:
Basic 0.60 0.62
Diluted 0.58 0.62
Non-GAAP earnings per common share:
Basic 0.30 0.31
Diluted 0.29 0.31
SOURCE ATA Inc.
Released September 3, 2009