BEIJING, May 11, 2022
/PRNewswire/ -- RYB Education, Inc. ("RYB" or the "Company")
(NYSE: RYB), a leading early childhood education service provider
in China, today announced its
unaudited financial results for the fourth quarter and full year
ended December 31, 2021.
Fourth Quarter 2021 Operational and Financial Summary
- Number of students enrolled at directly operated facilities was
33,890 as of December 31, 2021,
compared with 34,011 as of December 31,
2020.
- Net revenues increased by 0.7% to $47.4
million, compared with $47.1
million for the fourth quarter of 2020.
- Gross profit decreased by 14.9% to $10.2
million, compared with $11.9
million for the fourth quarter of 2020.
- Net income attributable to ordinary shareholders of RYB for the
fourth quarter of 2021 was $4.7
million, compared with $9.3
million for the fourth quarter of 2020. Adjusted net income
attributable to ordinary shareholders[1] of RYB for the
fourth quarter of 2021 was $1.5
million, compared with $10.0
million for the fourth quarter of 2020.
- Cash used in operating activities was $11.1 million in the fourth quarter of 2021,
compared with $2.1 million cash used
in operating activities for the fourth quarter of 2020.
|
[1] Adjusted net income (loss)
attributable to ordinary shareholders is a non-GAAP financial
measure, which is defined as net income (loss) attributable to
ordinary shareholders excluding share-based compensation expenses
and changes of redeemable non-controlling interests. See "Use of
Non-GAAP Financial Measures" and "Reconciliations of GAAP and
non-GAAP results" included elsewhere in this earnings
release.
|
Full Year 2021 Financial Summary
- Net revenues increased by 64.3% to $180.3 million, compared with $109.7 million for 2020.
- Gross profit was $31.2 million,
compared with a gross loss of $7.2
million for 2020.
- Net income attributable to ordinary shareholders of RYB for
2021 was $6.8 million, compared with
net loss of $37.3 million for 2020.
Adjusted net income attributable to ordinary
shareholders[2] of RYB for 2021 was $5.4million, compared with adjusted net loss of
$34.4 million for 2020.
|
[2] Adjusted net income (loss)
attributable to ordinary shareholders is a non-GAAP financial
measure, which is defined as net income (loss) attributable to
ordinary shareholders excluding share-based compensation expenses
and changes of redeemable non-controlling interests. See "Use of
Non-GAAP Financial Measures" and "Reconciliations of GAAP and
non-GAAP results" included elsewhere in this earnings
release.
|
"Over the past year, we continued to commit ourselves to the
healthy and sustainable development of preschool education in
China by strictly adhering to
policies and rules implemented by the regulators. As we smoothly
finished the fourth quarter and 2021, our business operations have
notably recovered from the ongoing COVID-19 impacts. Children and
their families also appreciate the series of effective measures
that we adopted during this period, and speak highly of the quality
of our educational services and products. This underpins our
improved capability to navigate through COVID-19 and stronger
business resilience." said Ms.
Yanlai Shi, Co-founder, Director and Chief Executive Officer of
RYB.
"Earlier in March, we announced the divestiture of our directly
operated kindergarten business in China, which marks a key milestone in
enhancing compliance with regulation and further transforming the
Company's business model. Going forward, we will focus on making
the Company a powerful education service platform to provide
end-to-end services across brand, content, systems, training, among
others, to educational institutions." concluded Ms. Shi.
Fourth Quarter 2021 Financial Results
Net Revenues
Net revenues for the fourth quarter of 2021 increased by 0.7% to
$47.4 million, from $47.1 million for the same quarter of 2020.
Service revenues for the fourth quarter of 2021 increased by
2.5% to $46.1 million, from
$44.9 million for the same quarter of
2020. The increase was primarily caused by the increase in tuition
fee from the Company's directly operated kindergartens in
China, which was due to the
increase of student enrollments. Increase in training fee revenue
also contribute to the increase in service revenues.
Product revenues for the fourth quarter of 2021 decreased by
36.2% to $1.4 million, from
$2.1 million for the same quarter of
2020. The decrease was primarily due to a decrease in the amount of
merchandise sold through the Company's franchise network.
Cost of Revenues
Cost of revenues for the fourth quarter of 2021 was $37.3 million, a 6.0% increase from $35.1 million for the same quarter of 2020. Cost
of revenues for services for the fourth quarter of 2021 was
$36.6 million, compared with
$33.7 million for the same quarter of
2020. The increase was primarily due to increase in staff
compensation and increase in direct cost of the Company's directly
operated kindergarten business. Cost of products revenues for the
fourth quarter of 2021 was $0.7
million, compared with $1.4
million for the same quarter of 2020. The decrease was
generally in line with the decrease in product revenues.
Gross Profit and Gross Margin
Gross profit for the fourth quarter of 2021 decreased by 14.9%
to $10.2 million, compared with
$11.9 million for the same quarter of
2020.
Gross margin for the fourth quarter of 2021 was 21.4%, compared
with 25.3% for the same quarter last year.
Operating Expenses
Total operating expenses for the fourth quarter of 2021 were
$10.0 million, compared with
$10.8 million for the same quarter of
2020. Excluding share-based compensation expenses, operating
expenses were $9.7 million,
compared with $10.1 million for the
fourth quarter of 2020.
Selling expenses for the fourth quarter of 2021 were
$0.8 million, compared with
$0.4 million for the same quarter of
2020.
General and administrative ("G&A") expenses for the fourth
quarter of 2021 were $4.7 million, a
43.2% decrease from $8.2 million for
the same quarter of 2020. Excluding share-based compensation
expenses, G&A expenses were $4.3
million for the fourth quarter of 2021, compared with
$7.5 million for the same quarter of
2020. The decrease in G&A expenses excluding share-based
compensation expenses was primarily due to a one-off credit loss of
$3.4 million incurred in the fourth
quarter of 2020. The share-based compensation expenses included in
G&A expenses were $0.3 million
for the quarter.
Impairment loss on goodwill was $4.6
million for the fourth quarter of 2021, compared to nil for
the same quarter of 2020.
Impairment loss on long-lived asset was nil for the fourth
quarter of 2021, compared to $2.1
million for the same quarter of 2020.
Operating Income
Operating income for the fourth quarter of 2021 was $0.1million, compared with $1.2 million of operating income for the same
quarter last year. Adjusted operating income[3] was
$0.5 million for the fourth quarter
of 2021, compared with $1.9 million
for the same quarter of 2020.
[3] Adjusted operating income is a non-GAAP financial
measure, which is defined as operating income excluding share-based
compensation expenses.
Net Income/loss
Net income attributable to ordinary shareholders of RYB for the
fourth quarter of 2021 was $4.7
million, compared with $9.3
million for the same quarter of 2020. Adjusted net income
attributable to ordinary shareholders of RYB, which excludes the
impact of share-based compensation
expenses and changes of redeemable non-controlling interests, for
the fourth quarter of 2021 was
$1.5 million, compared with
$10.0 million for the same quarter of
2020.
Basic and diluted net income per American depositary share
("ADS") attributable to ordinary shareholders of RYB for the fourth
quarter of 2021 were $0.17 and
$0.16, compared with basic and
diluted net income per ADS attributable to ordinary shareholders of
RYB of $0.34 and $0.33 respectively, for the same quarter of 2020.
Each ADS represents one Class A ordinary share.
Adjusted basic and diluted net income per ADS attributable to
ordinary shareholders[4] of RYB for the fourth quarter
of 2021 were both $0.05, compared
with both $0.36 for the same quarter
of 2020.
EBITDA[5] for the fourth quarter of 2021 was
$3.7 million, compared with
$5.2 million for the same period of
2020. Adjusted EBITDA[6] for the fourth quarter of 2021
was $4.0 million, compared with
$5.9 million for the same quarter of
2020.
|
[4] Adjusted
basic and diluted net income per ADS attributable to ordinary
shareholders is a non-GAAP financial measure, which is defined as
basic and diluted net income per ADS attributable to ordinary
shareholders excluding share-based compensation
expenses.
|
|
[5] EBITDA
is defined as net income excluding depreciation, amortization and
income tax expenses.
|
|
[6] Adjusted
EBITDA is a non-GAAP financial measure, which is defined as net
income excluding depreciation, amortization, interest expenses,
income tax expenses, and share-based compensation
expenses.
|
Operating Cash Flow
Cash used in operating activities was $11.1 million during the fourth quarter of 2021,
compared with $2.1 million of cash
used in operating activities during the fourth quarter of 2020.
Full Year of 2021 Financial Results
Net Revenues
Net revenues for the full year of 2021 were $180.3 million, compared with $109.7 million for 2020.
Services revenues for the full year of 2021 were $172.4 million, compared with $103.1 million for 2020. The increase was
primarily due to a significant increase in tuition fee revenue, as
the Company's directly operated facilities in China were in normal operation during most of
2021 whereas those facilities, as a result of the COVID-19
pandemic, were temporarily closed for most of the first nine months
of 2020.
Product revenues for the full year of 2021 were $7.9 million, compared with $6.6 million for 2020. The increase was primarily
due to an increase in the amount of merchandise sold through the
Company's franchise network, the operation of which was temporarily
suspended operations during most of the first nine months of 2020
caused by COVID-19 pandemic.
Cost of Revenues
Cost of revenues for the full year of 2021 was $149.1 million, compared with $116.9 million for 2020. Cost of services
revenues for the full year of 2021 was $145.5 million, compared with $113.3 million for 2020. The increase was
primarily due to increase in staff compensation and direct
cost of the Company's directly operated kindergarten business. Cost
of products revenues for the full year of 2021 was $3.7 million, compared with $3.6 million for 2020.
Gross Profit / Loss
Gross profit for the full year of 2021 was $31.2 million, compared with a gross loss of
$7.2 million for 2020.
Operating Expenses
Total operating expenses for the full year of 2021 were
$27.3 million, compared with
$36.2 million for 2020. Excluding
share-based compensation expenses, operating expenses were
$25.3 million, compared with
$33.3 million for 2020.
Selling expenses were $2.5 million
for the full year of 2021, compared with $1.3 million for 2020.
G&A expenses for the full year of 2021 were $20.3 million, compared with $24.3 million for 2020. Excluding share-based
compensation expenses, G&A expenses were $18.3 million for the full year of 2021, compared
with $21.5million for 2020. The
decrease was primarily due to a one-off credit loss of $4.3 million for other receivables and loan
receivables incurred in 2020.
Impairment loss on goodwill was $4.6
million for the full year of 2021, compared to $8.5 million for 2020.
Impairment loss on long-lived asset was nil for the full year of
2021, compared to $2.1 million for
2020.
Operating Income/loss
Operating income for the full year of 2021 was $3.8 million, compared with operating loss of
$43.4 million for 2020. Adjusted
operating income for 2021 was $5.9
million, compared with adjusted operating loss of
$40.5 million for 2020.
Impairment loss on long-term investment
Impairment loss on long-term investment for the full year of
2021 was nil, compared with $2.4
million for 2020.
Net Income/loss
Net income attributable to ordinary shareholders of RYB for the
full year of 2021 was $6.8 million,
compared with a loss of $37.3 million
for 2020. Adjusted net income attributable to ordinary shareholders
of RYB, which excludes the impact of share-based compensation
expenses and changes of redeemable non-controlling interests, for
the full year of 2021 was $5.4
million, compared with a loss of $34.4 million for 2020.
Basic and diluted net income per ADS attributable to ordinary
shareholders of RYB for the full year of 2021 were $0.24 and $0.23,
compared with basic and diluted net loss per ADS attributable to
ordinary shareholders of RYB of both $1.32 for 2020. Each ADS represents one Class A
ordinary share.
Adjusted basic and diluted net income per ADS attributable to
ordinary shareholders of RYB for the full year of 2021 were both
$0.19, compared with adjusted basic
and diluted net loss per ADS attributable to ordinary shareholders
of RYB of both $1.22 for 2020.
EBITDA for the full year of 2021 was $20.0 million, compared with a loss of
$29.3 million for 2020. Adjusted
EBITDA for 2021 was $22.0 million,
compared with a loss of $26.4 million
for 2020.
Balance Sheet
As of December 31, 2021, the
Company had total cash and cash equivalents of $65.3 million, compared with $53.5 million as of December 31, 2020. The increase in cash and cash
equivalents balance was mainly due to the operating cash inflow of
$19.2 million throughout the full
year of 2021 as a result of tuition fees collected at the Company's
directly operated facilities.
The Divestiture of the Company's Directly Operated
Kindergarten Business in China
On March 1, 2022, the subsidiaries
of the Company, Beijing RYB Technology Development Co., Ltd. ("RYB
Technology") and Qiyuan Education Technology (Tianjin) Co., Ltd ("TJ Qiyuan") have entered
into termination agreements with certain variable interest entities
("the previous VIEs"), Beijing RYB Children Education Technology
Development Co., Ltd ("Beijing
RYB") and Beiyao Technology Development Co., Ltd.
("Beiyao"). By entering into those termination agreements, the
Company no longer has contractual control over its directly
operated kindergarten business (the "Divestiture").
This Divestiture includes the termination of agreements by and
among RYB Technology, TJ Qiyuan, Beijing RYB, Beiyao and their
shareholders. As a result, 90 directly operated kindergartens are
divested. As the consideration for the termination of VIE
agreements, an aggregate amount of RMB158.5
million will be paid in installments to RYB Technology and
TJ Qiyuan. At the same time, to ensure ongoing stability and
sustained provision of quality kindergarten education, the
subsidiaries of the Company have entered into a series of service
agreements to provide brand royalty, training, management IT
system, recruitment, and curriculum design services to the previous
VIEs and/or their subsidiaries. The Divestiture becomes effective
on April 30, 2022.
As part of the Divestiture, RYB Technology has entered into a
loan agreement with Beijing RYB and Beiyao to reflect the net
balance of historical inter-company lending and borrowing, the
exact amount of which is subject to the further audit procedure
completion.
The pro forma statements of financial position and pro forma
statements of operations of all the entities as a group that would
be deconsolidated through the Divestiture, as well as those of all
entities that remain in the Group as of and for the year ended
December 31, 2021, as if the
Divestiture had become effective on January
1, 2021, are also attached with the Company's unaudited
consolidated financial statements.
About RYB Education, Inc.
Founded on the core values of ''Care'' and ''Responsibility,''
''Inspire'' and ''Innovate,'' RYB Education, Inc. is a leading
early childhood education service provider in China. Since
opening its first play-and-learn center in 1998, the Company has
grown and flourished with the mission to provide high-quality,
individualized and age-appropriate care and education to nurture
and inspire each child for his or her betterment in life. During
its two decades of operating history, the Company has built "RYB"
into a well-recognized education brand and helped bring about many
new educational practices in China's early childhood
education industry. RYB's comprehensive early childhood education
solutions meet the needs of children from infancy to 6 years old
through structured courses at kindergartens and play-and-learn
centers, as well as at-home educational products and services.
For more information, please visit http://ir.rybbaby.com
Use of Non-GAAP Financial Measures
We use EBITDA, adjusted EBITDA, adjusted operating income,
adjusted net income, and adjusted basic and diluted net income per
ADS, each a non-GAAP financial measure, in evaluating our operating
results and for financial and operational decision-making
purposes.
EBITDA is defined as net income excluding depreciation,
amortization, and income tax expenses; adjusted EBITDA is defined
as net income excluding depreciation, amortization, income tax
expenses, and share-based compensation expenses; adjusted operating
income is defined as operating income excluding share-based
compensation expenses; adjusted net income attributable to ordinary
shareholders is defined as net income attributable to ordinary
shareholders excluding share-based compensation expenses and
changes of redeemable non-controlling interests; and adjusted basic
and diluted net income per ADS attributable to ordinary
shareholders are defined as basic and diluted net income per ADS
attributable to ordinary shareholders excluding share-based
compensation expenses and changes of redeemable non-controlling
interests.
We believe that EBITDA, adjusted EBITDA, adjusted operating
income, adjusted net income, and adjusted basic and diluted net
income per ADS, help identify underlying trends in our business
that could otherwise be distorted by the effect of certain expenses
that we include in income from operations and net income. We
believe that EBITDA, adjusted EBITDA, adjusted operating income,
adjusted net income, and adjusted basic and diluted net income per
ADS, provide useful information about our operating results,
enhance the overall understanding of our past performance and
future prospects and allow for greater visibility with respect to
key metrics used by our management in its financial and operational
decision-making.
EBITDA, adjusted EBITDA, adjusted operating income, adjusted net
income, and adjusted basic and diluted net income per ADS, should
not be considered in isolation or construed as an alternative to
net income or any other measure of performance or as an indicator
of our operating performance. Investors are encouraged to review
the historical adjusted financial measures to the most directly
comparable GAAP measures. EBITDA, adjusted EBITDA, adjusted
operating income, adjusted net income, and adjusted basic and
diluted net income per ADS, presented here may not be comparable to
similarly titled measures presented by other companies. Other
companies may calculate similarly titled measures differently,
limiting their usefulness as comparative measures to our data. We
encourage investors and others to review our financial information
in its entirety and not rely on a single financial measure.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: the
Company's brand recognition and market reputation; student
enrolment in the Company's teaching facilities; the Company's
growth strategies; its future business development, results of
operations and financial condition; trends and competition in
China's early childhood education
market; changes in its revenues and certain cost or expense items;
the expected growth of the Chinese early childhood education
market; Chinese governmental policies relating to the Company's
industry and general economic conditions in China. Further information regarding these and
other risks is included in the Company's filings with the SEC. All
information provided in this press release and in the attachments
is as of the date of this press release, and the Company undertakes
no obligation to update any forward-looking statement, except as
required under applicable law.
For investor and media inquiries, please contact:
In China:
RYB
Education, Inc.
Investor Relations
E-mail: ir@rybbaby.com
The Piacente Group, Inc.
Yang Song
Tel: +86 (10) 6508-0677
E-mail: ryb@tpg-ir.com
In the United
States:
The Piacente Group, Inc.
Brandi Piacente
Tel : +1-212-481-2050
E-mail : ryb@tpg-ir.com
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(in thousands of
U.S. dollars)
|
|
|
As of
|
|
December
31,
2021
|
December
31,
2020
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
65,263
|
53,454
|
|
|
Term
deposits
|
215
|
-
|
|
|
Accounts receivable,
net
|
1,300
|
1,844
|
|
|
Inventories
|
6,130
|
5,773
|
|
|
Prepaid expenses and
other current assets
|
9,344
|
8,927
|
|
|
Loan
receivables
|
-
|
107
|
|
|
Total current
assets
|
82,252
|
70,105
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
Restricted
cash
|
993
|
1,127
|
|
|
Property, plant and
equipment, net
|
39,379
|
47,638
|
|
|
Goodwill
|
42,102
|
46,147
|
|
|
Intangible assets,
net
|
12,737
|
14,179
|
|
|
Long-term
investment
|
169
|
217
|
|
|
Deferred tax
assets
|
22,803
|
21,168
|
|
|
Other non-current
assets
|
8,668
|
14,438
|
|
|
Operating lease
right-of-use assets
|
73,973
|
87,472
|
|
|
Total
assets
|
283,076
|
302,491
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Prepayments from
customers, current portion
|
4,919
|
4,145
|
|
|
Accrued expenses and
other current liabilities
|
55,642
|
54,406
|
|
|
Income tax
payable
|
20,888
|
18,592
|
|
|
Operating lease
liabilities, current portion
|
13,890
|
16,856
|
|
|
Deferred revenue,
current portion
|
27,019
|
34,351
|
|
|
Long-term debt, current
portion
|
-
|
7
|
|
|
Total current
liabilities
|
122,358
|
128,357
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
Prepayments from
customers, non-current portion
|
1,461
|
4,024
|
|
|
Deferred revenue,
non-current portion
|
999
|
1,726
|
|
|
Other non-current
liabilities
|
11,645
|
12,519
|
|
|
Deferred income tax
liabilities
|
1,768
|
1,890
|
|
|
Operating lease
liabilities, non-current portion
|
65,689
|
76,308
|
|
|
Total
liabilities
|
203,920
|
224,824
|
|
|
|
|
|
|
Mezzanine
equity
|
|
|
|
|
Redeemable
non-controlling interests
|
4,942
|
9,988
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Ordinary
shares
|
29
|
29
|
|
|
Treasury
stock
|
(8,667)
|
(10,321)
|
|
|
Additional paid-in
capital
|
136,504
|
141,094
|
|
|
Statutory
reserve
|
5,164
|
4,652
|
|
|
Accumulated
other comprehensive income/(loss)
|
257
|
(1,468)
|
|
|
Accumulated
deficit
|
(65,559)
|
(71,837)
|
|
|
Total RYB Education,
Inc. shareholders' equity
|
67,728
|
62,149
|
|
|
Non-controlling
interest
|
6,486
|
5,530
|
|
|
Total
equity
|
74,214
|
67,679
|
|
|
Total liabilities,
mezzanine equity and total equity
|
283,076
|
302,491
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
(in thousands of
U.S. dollars, except share, ADS, per share and per ADS
data)
|
|
|
Three Months
Ended
December 31,
|
Year Ended
December 31,
|
|
2021
|
2020
|
2021
|
2020
|
|
Net
revenues:
|
|
|
|
|
|
Services
|
46,057
|
44,930
|
172,404
|
103,073
|
|
Products
|
1,368
|
2,143
|
7,909
|
6,642
|
|
Total net
revenues
|
47,425
|
47,073
|
180,313
|
109,715
|
|
Cost of
revenues:
|
|
|
|
|
|
Services
|
36,556
|
33,722
|
145,473
|
113,285
|
|
Products
|
710
|
1,420
|
3,669
|
3,616
|
|
Total cost of
revenues
|
37,266
|
35,142
|
149,142
|
116,901
|
|
Gross
profit/(loss)
|
10,159
|
11,931
|
31,171
|
(7,186)
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Selling
expenses
|
816
|
416
|
2,491
|
1,285
|
|
General and
administrative expenses
|
4,654
|
8,198
|
20,286
|
24,313
|
|
Impairment
loss on goodwill
|
4,559
|
-
|
4,559
|
8,454
|
|
Impairment
loss on long-lived assets
|
-
|
2,148
|
-
|
2,148
|
|
Total operating
expenses
|
10,029
|
10,762
|
27,336
|
36,200
|
|
|
|
|
|
|
Operating
income/(loss)
|
130
|
1,169
|
3,835
|
(43,386)
|
|
Interest
income
|
61
|
61
|
219
|
348
|
|
Government subsidy
income
|
119
|
1,601
|
2,491
|
4,591
|
|
Gain on disposal of
subsidiaries
|
621
|
216
|
439
|
96
|
|
Impairment loss on
long-term investments
|
-
|
(519)
|
-
|
(2,432)
|
|
|
|
|
|
|
Income/(loss) before
income taxes
|
931
|
2,528
|
6,984
|
(40,783)
|
|
Less: Income tax
expense (benefit)
|
1,008
|
(8,298)
|
3,440
|
215
|
|
|
|
|
|
|
(Loss)/income before gain/(loss) in equity
method investments
|
(77)
|
10,826
|
3,544
|
(40,998)
|
|
Gain/(loss) from
equity method investment
|
101
|
39
|
(15)
|
(185)
|
|
|
|
|
|
|
Net
income/(loss)
|
24
|
10,865
|
3,529
|
(41,183)
|
|
Less: Net (loss)/
income attributable to non-
controlling interest
|
(1,179)
|
1,550
|
189
|
(3,903)
|
|
Decrease in redeemable
non-
controlling interest
|
(3,450)
|
-
|
(3,450)
|
-
|
|
|
|
|
|
|
Net income/(loss)
attributable to ordinary
shareholders of RYB
|
4,653
|
9,315
|
6,790
|
(37,280)
|
|
|
|
|
|
|
Net income/(loss) per
share attributable to
ordinary shareholders of RYB Education, Inc.
|
|
|
|
|
|
Basic
|
0.17
|
0.34
|
0.24
|
(1.33)
|
|
Diluted
|
0.16
|
0.33
|
0.23
|
(1.33)
|
|
Net income/(loss) per
ADS attributable to
ordinary shareholders of RYB Education, Inc.
(Note 1)
|
|
|
|
|
|
Basic
|
0.05
|
0.34
|
0.19
|
(1.33)
|
|
Diluted
|
0.05
|
0.33
|
0.19
|
(1.33)
|
|
Weighted average shares
used in calculating
net income/(loss) per ordinary share
|
|
|
|
|
|
Basic
|
28,003,415
|
27,792,174
|
28,208,734
|
28,122,851
|
|
Diluted
|
28,796,018
|
28,196,921
|
28,962,480
|
28,122,851
|
|
|
Note 1: Each ADS
represents one Class A ordinary share.
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
(in thousands of
U.S. dollars)
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
Year Ended
December
31,
|
|
2021
|
2020
|
2021
|
2020
|
|
Net
income/(loss)
|
24
|
10,865
|
3,529
|
(41,183)
|
|
Other comprehensive
income/(loss), net of tax
of nil:
|
|
|
|
|
|
Change in cumulative
foreign currency
translation adjustments
|
1,938
|
1,089
|
1,785
|
(1,036)
|
|
Total comprehensive
income/(loss)
|
1,962
|
11,954
|
5,314
|
(42,219)
|
|
Less:
Comprehensive (loss)/income
attributable to non-controlling interest
|
(4,403)
|
2,143
|
(3,201)
|
(3,330)
|
|
Comprehensive
income/(loss)attributable to
RYB Education, Inc.
|
6,365
|
9,811
|
8,515
|
(38,889)
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION
OF GAAP AND NON-GAAP RESULTS
|
|
(in thousands
of U.S. dollars, except share, ADS, per share and per ADS
data)
|
|
|
Three Months
Ended
December
31,
|
Year Ended
December
31,
|
|
2021
|
2020
|
2021
|
2020
|
|
|
|
|
|
|
Operating
income/(loss)
|
130
|
1,169
|
3,835
|
(43,386)
|
|
Share-based
compensation expenses
|
324
|
703
|
2,021
|
2,930
|
|
Adjusted operating
income/(loss)
|
454
|
1,872
|
5,856
|
(40,456)
|
|
|
|
|
|
|
Net income/(loss)
attributable to ordinary
shareholders of RYB Education, Inc.
|
4,653
|
9,315
|
6,790
|
(37,280)
|
|
Share-based
compensation
expenses
|
324
|
703
|
2,021
|
2,930
|
|
Decrease in redeemable
non-
controlling
interest
|
(3,450)
|
-
|
(3,450)
|
-
|
|
Adjusted net
income/(loss) attributable to
ordinary shareholders of RYB Education, Inc.
|
1,527
|
10,018
|
5,361
|
(34,350)
|
|
|
|
|
|
|
Net
income/(loss)
|
24
|
10,865
|
3,529
|
(41,183)
|
|
Add: Income tax expense
(benefit)
|
1,008
|
(8,298)
|
3,440
|
215
|
|
Depreciation and
amortization
|
2,662
|
2,590
|
13,048
|
11,670
|
|
EBITDA
|
3,694
|
5,157
|
20,017
|
(29,298)
|
|
Share-based
compensation expenses
|
324
|
703
|
2,021
|
2,930
|
|
Adjusted
EBITDA
|
4,018
|
5,860
|
22,038
|
(26,368)
|
|
|
|
|
|
|
Net income/(loss) per
ADS attributable to
ordinary shareholders of RYB Education, Inc.-
Basic (Note1)
|
0.17
|
0.34
|
0.24
|
(1.33)
|
|
Net income/(loss) per
ADS attributable to
ordinary shareholders of RYB Education, Inc.-
Diluted (Note 1)
|
0.16
|
0.33
|
0.23
|
(1.33)
|
|
|
|
|
|
|
Adjusted net
income/(loss) per ADS
attributable to ordinary shareholders of RYB
Education, Inc.- Basic (Note 1)
|
0.05
|
0.36
|
0.19
|
(1.22)
|
|
Adjusted net
income/(loss) per ADS
attributable to ordinary shareholders of RYB
Education, Inc.- Diluted (Note 1)
|
0.05
|
0.36
|
0.19
|
(1.22)
|
|
|
|
|
|
|
Weighted average shares
used in calculating
basic net income/(loss)adjusted net income/(loss) per
ADS (Note 1)
|
28,003,415
|
27,792,174
|
28,208,734
|
28,122,851
|
|
Weighted average shares
used in calculating
diluted net income/(loss) per ADS (Note 1)
|
28,796,018
|
28,196,921
|
28,962,480
|
28,122,851
|
|
Weighted average shares
used in calculating
diluted adjusted net income/(loss) per ADS (Note 1)
|
28,796,018
|
28,196,921
|
28,962,480
|
28,122,851
|
|
|
|
|
|
|
Adjusted net
income/(loss) per share
attributable to ordinary shareholders of RYB
Education, Inc. - Basic
|
0.05
|
0.36
|
0.19
|
(1.22)
|
|
Adjusted net
income/(loss) per share attributable to
ordinary shareholders of RYB Education, Inc. -
Diluted
|
0.05
|
0.36
|
0.19
|
(1.22)
|
|
Note 1: Each ADS
represents one Class A ordinary share.
|
|
UNAUDITED PRO FORMA
STATEMENTS OF FINANCIAL POSITION
|
|
(In thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
As of December 31,
2021
|
|
Consolidated
|
|
Divestiture
|
|
Divestiture
|
|
Non
|
|
|
|
|
|
Adjustment
|
|
Divestiture
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
65,263
|
|
31,892
|
|
-
|
|
33,371
|
|
Term
deposits
|
215
|
|
215
|
|
-
|
|
-
|
|
Accounts
receivable
|
1,300
|
|
27
|
|
-
|
|
1,273
|
|
Inventories
|
6,130
|
|
-
|
|
-
|
|
6,130
|
|
Prepaid expenses
and other current assets
|
9,344
|
|
6,409
|
|
-
|
|
2,935
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
82,252
|
|
38,543
|
|
-
|
|
43,709
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
Restricted
cash
|
993
|
|
993
|
|
-
|
|
-
|
|
Property, plant
and equipment, net
|
39,379
|
|
32,967
|
|
-
|
|
6,412
|
|
Goodwill
|
42,102
|
|
22,925
|
|
-
|
|
19,177
|
|
Intangible
assets, net
|
12,737
|
|
1,638
|
|
-
|
|
11,099
|
|
Long-term
investments
|
169
|
|
-
|
|
-
|
|
169
|
|
Deferred tax
assets
|
22,803
|
|
13,969
|
|
-
|
|
8,834
|
|
Other
non-current assets
|
8,668
|
|
3,194
|
|
-
|
|
5,474
|
|
Operating lease
right-of-use assets
|
73,973
|
|
49,581
|
|
-
|
|
24,392
|
|
Amounts due from
related parties (for Divestiture)
|
-
|
|
-
|
|
22,576
|
|
22,576
|
|
Amounts due from
related parties
|
-
|
|
-
|
|
44,664
|
|
44,664
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
283,076
|
|
163,810
|
|
67,240
|
|
186,506
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Prepayments from
customers, current portion
|
4,919
|
|
183
|
|
-
|
|
4,736
|
|
Accrued expenses
and other current liabilities
|
55,642
|
|
32,337
|
|
-
|
|
23,305
|
|
Income tax
payable
|
20,888
|
|
20,020
|
|
-
|
|
868
|
|
Operating lease
liabilities, current portion
|
13,890
|
|
8,503
|
|
-
|
|
5,387
|
|
Deferred
revenue, current portion
|
27,019
|
|
18,865
|
|
-
|
|
8,154
|
|
Long-term debt,
current portion
|
-
|
|
-
|
|
-
|
|
-
|
|
Amounts due to
related parties
|
-
|
|
44,664
|
|
44,664
|
|
-
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
122,358
|
|
124,572
|
|
44,664
|
|
42,450
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
Prepayments from
customers, non-current portion
|
1,461
|
|
540
|
|
-
|
|
921
|
|
Deferred
revenue, non-current portion
|
999
|
|
-
|
|
-
|
|
999
|
|
Other
non-current liabilities
|
11,645
|
|
2,071
|
|
-
|
|
9,574
|
|
Deferred income
tax liabilities
|
1,768
|
|
14
|
|
-
|
|
1,754
|
|
Operating lease
liabilities, non-current portion
|
65,689
|
|
47,239
|
|
-
|
|
18,450
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
203,920
|
|
174,436
|
|
44,664
|
|
74,148
|
|
|
|
|
|
|
|
|
|
NET
ASSETS(LIABILITIES)
|
79,156
|
|
(10,626)
|
|
22,576
|
|
112,358
|
|
UNAUDITED PRO FORMA
STATEMENTS OF OPERATIONS
|
|
(In thousands of
U.S. dollars, except share and per share data, or otherwise
noted)
|
|
|
|
|
|
|
|
|
|
For the year ended December 31,
2021
|
|
Consolidated
|
|
Divestiture
|
|
Divestiture
|
|
Non
|
|
|
|
|
|
Adjustment
|
|
Divestiture
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
180,313
|
|
102,966
|
|
-
|
|
77,347
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
149,142
|
|
94,590
|
|
-
|
|
54,552
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
31,171
|
|
8,376
|
|
-
|
|
22,795
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
2,491
|
|
1,291
|
|
-
|
|
1,200
|
|
General
and administrative expenses
|
20,286
|
|
2,181
|
|
-
|
|
18,105
|
|
Impairment loss on goodwill
|
4,559
|
|
4,559
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
27,336
|
|
8,031
|
|
-
|
|
19,305
|
|
|
|
|
|
|
|
|
|
Operating
income
|
3,835
|
|
345
|
|
-
|
|
3,490
|
|
|
|
|
|
|
|
|
|
Interest
income
|
219
|
|
144
|
|
-
|
|
75
|
|
Government
subsidy income
|
2,491
|
|
1,053
|
|
-
|
|
1,438
|
|
Gain(loss) on
disposal of subsidiaries
|
439
|
|
459
|
|
-
|
|
(20)
|
|
Gain on
divestiture
|
-
|
|
-
|
|
34,068
|
|
34,068
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
6,984
|
|
2,001
|
|
34,068
|
|
39,051
|
|
Less: Income tax
expenses
|
3,440
|
|
1,126
|
|
-
|
|
2,314
|
|
|
|
|
|
|
|
|
|
Income before loss
from equity method investments
|
3,544
|
|
875
|
|
-
|
|
36,737
|
|
Loss from equity method
investments
|
(15)
|
|
(8)
|
|
-
|
|
(7)
|
|
|
|
|
|
|
|
|
|
Net
income
|
3,529
|
|
867
|
|
34,068
|
|
36,730
|
View original
content:https://www.prnewswire.com/news-releases/ryb-education-inc-reports-fourth-quarter-and-full-year-2021-financial-results-301545495.html
SOURCE RYB Education, Inc.