Global Education Announces Second Quarter 2011 Financial Results - Press release, Aug. 29, 2011, GlobeNewswire via COMTEX

http://www.marketwatch.com/story/global-education-announces-second-quarter-2011-financial-results-2011-08-29

BEIJING, Aug. 29, 2011 (GLOBE NEWSWIRE) -- Global Education & Technology Group Ltd. GEDU -2.15% ("Global Education" or the "Company"), the largest test preparation provider for the International English Language Testing System ("IELTS") and a leading provider of educational courses and related services in China, today announced unaudited financial results for the second quarter of 2011.

Second Quarter 2011 Financial Highlights

-- Total net revenues increased 25.6% year-over-year to RMB88.9 million
($13.8 million1) from RMB70.8 million in the second quarter of 2010.
-- Net income, including share-based compensation and fair value change in
contingent consideration payable attributable to Global Education,
increased 35.4% to RMB11.1 million ($1.7 million), from RMB8.2 million
in the second quarter of 2010.
-- Non-GAAP operating income, excluding share-based compensation of RMB1.8
million ($0.3 million) versus RMB1.1 million for the second quarter
2010, decreased 74.1% year-over-year to RMB2.8 million ($0.4 million)
from RMB10.8 million in the second quarter of 2010. GAAP operating
income (including share-based compensation) decreased 89.7%
year-over-year to RMB1.0 million ($0.2 million) from RMB9.7 million in
the second quarter of 2010. In the quarter, we continue to expand our
learning center network and marketing tied to our new, high potential
business lines of Kids Science and after-school tutoring by adding 6 new
learning centers. As of June 30, 2011, we had 36 learning centers in 9
cities covering the kids area.
-- Non-GAAP net income, excluding share-based compensation and fair value
change in contingent consideration payable attributable to Global
Education, decreased 17.4% year-over-year to RMB10.9 million ($1.7
million) from RMB13.2 million in the second quarter of 2010.
-- Total course enrollments increased 7.3% year-over-year to 263,043,
compared to 245,164 in the second quarter of 2010.
-- Total number of learning centers increased to 414, covering 130 cities
as of June 30, 2011, up from 379 as of March 31, 2011.
-- Total number of directly-owned-and-operated learning centers increased
by 10 to 105 as of June 30, 2011, from 95 as of March 31, 2011. Of
these 105 directly-owned-and-operated learning centers, 69 specialize in
IELTS and other language test preparation and 36 are designated for kids
related educational services, which includes Kids English, Kids Science
and after-school tutoring.

Six months ended June 30, 2011 Financial Highlights

-- Total net revenues increased 24.8% year-over-year to RMB165.7 million
($25.6 million1) from RMB132.8 million in the six months ended June 30,
2010.
-- Net income, including share-based compensation and fair value change in
contingent consideration payable attributable to Global Education,
increased 52.7% to RMB22.9 million ($3.5 million), from RMB15.0 million
in the six months ended June 30, 2010.
-- Non-GAAP operating income, excluding share-based compensation of RMB3.8
million ($0.6 million) versus RMB2.2 million for the six months ended
June 30, 2010, decreased 69.1% year-over-year to RMB6.4 million ($1.0
million) from RMB20.7 million in the six months ended June 30, 2010.
GAAP operating income (including share-based compensation) decreased
85.9% year-over-year to RMB2.6 million ($0.4 million) from RMB18.5
million in the six months ended June 30, 2010. In the first half of
fiscal year 2011, we continue to expand our learning center network and
marketing, especially our new, high potential business lines of Kids
Science and after-school tutoring. In the six months ended June 30,
2011, we have added 23 new learning centers, 6 of which related to our
test preparation business and 17 new learning centers relating to Kids
Science and after-school tutoring.
-- Non-GAAP net income, excluding share-based compensation and fair value
change in contingent consideration payable attributable to Global
Education, decreased 19.4% year-over-year to RMB17.0 million ($2.6
million) from RMB21.1 million in the six months ended June 30, 2010.
-- Total course enrollments increased 9.7% year-over-year to 460,444,
compared to 419,545 in the six months ended June 30, 2010.
-- Total number of learning centers increased to 414, covering 130 cities
as of June 30, 2011, up from 351 as of December 31, 2010.
-- Total number of directly-owned-and-operated learning centers increased
by 23 to 105 as of June 30, 2011, from 82 as of December 31, 2010.

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