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RYB Education, Inc. Reports Second Quarter 2020 Financial Results

BEIJING, Aug. 27, 2020 /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 second quarter of 2020. Impact from COVID-19 With the unprecedented…

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BEIJING, Aug. 27, 2020 /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 second quarter of 2020.

Impact from COVID-19

With the unprecedented challenges created by the Covid-19 pandemic since late January 2020, the Company encountered disruptions of business starting from the first quarter. Following the control measures and regulations introduced by the government, the Company began in late January to temporarily suspend the operations of its facilities in China. The closure of facilities has continued through nearly the entire second quarter of this year. This had a significantly adverse impact on the result of operation in the first half of 2020 as the majority of the Company’s net revenues are derived from tuition fees collected at such facilities.

In response to the challenges presented by Covid-19, the Company has taken various actions to mitigate impacts, including measures to ensure the health and safety of the students and families, to optimize personnel and control discretionary spending, especially for the business initiatives facing more serious impact in the near term. Moreover, the Company acted swiftly and effectively to introduce online education content and maintain ongoing parent-teacher communication. The Company is encouraged to see that these efforts and education offerings have been well-received by students and their families.

By the end of the second quarter, 75% of the Company’s directly operated kindergartens in PRC and Singapore, and over 70% of franchise play-and-learn centers, had resumed operation. Student recruitment at directly operated kindergartens and promotional activities for franchise play-and-learn centers have now resumed through both online and offline channels.

Second Quarter 2020 Operational and Financial Summary

  • Number of students enrolled at directly operated facilities was 31,023[1] as of June 30, 2020, compared with 30,478 as of June 30, 2019.
  • Net revenues were $12.8 million, compared with $53.6 million for the second quarter of 2019.
  • Gross loss was $9.5 million, compared with gross profit of $11.9 million for the second quarter of 2019.
  • Net loss attributable to ordinary shareholders of RYB for the second quarter of 2020 was $12.8 million, compared with $2.9 million of net income attributable to ordinary shareholders of RYB for the second quarter of 2019. Adjusted net loss attributable to ordinary shareholders[2] of RYB for the second quarter of 2020 was $12.0 million, compared with $3.9 million of adjusted net income attributable to ordinary shareholders of RYB for the second quarter of 2019.
  • Cash used in operating activities was $5.0 million in the second quarter of 2020, compared with $2.9 million of cash used in operating activities for the second quarter of 2019.

First Six Months of 2020 Financial Results

  • Net revenues were $30.1 million, compared with $87.8 million for the first six months of 2019.
  • Gross loss was $21.1 million, compared with gross profit of $13.8 million for the first six months of 2019.
  • Net loss attributable to ordinary shareholders of RYB was $39.5 million, compared with $0.6 million of net income attributable to ordinary shareholders of RYB for the same period of 2019. Adjusted net loss attributable to ordinary shareholders of RYB was $37.9 million, compared with $2.7 million of adjusted net income attributable to ordinary shareholders of RYB for the same period of 2019.
  • Cash used in operating activities was $19.0 million, compared with $10.3 million of cash generated from operating activities for the same period of 2019.

During the second quarter, in the face of prolonged facility closures due to impacts of the Covid-19 pandemic, we continued to enhance our online service capabilities to ensure that students would have undisrupted remote access to high-quality at-home learning resources and to a good collection of early childhood education content,” said Ms. Yanlai Shi, Co-founder, Director and Chief Executive Officer of RYB, “Following the initial launch in the first quarter of our paid course platform for kindergarteners, during the second quarter the team further added content offerings available on the platform. We simultaneously carried out a pilot promotion of this platform for enrolled students at some directly operated kindergartens, and their parents provided positive feedback. With the help of this platform and most of our facilities across regions back to normal operation over time, we will push forward the online-merge-offline practice for learning at the kindergarten level. While still in its very early stage, I believe this platform will help us better upgrade our service quality as part of our digitalization efforts in kindergarten services. With a complete and polished content platform fully established in the future, we look forward to exploring its potential to be adopted across market.

“At the same time, we also completed planning for service management model for third-party kindergarten and play-and-learn center operations. We plan to leverage our integrated online-merge-offline model and expand existing services by this service management model. Through this service management model, we can deliver high-quality content, standardized management systems, and targeted service training to a broad range of facility operators in a systematic manner with modularized offerings. We believe this can also help reinvigorate the industry. In addition, we kicked off our early-years childcare business, an initiative for which we have been doing market research, developing educational content, assembling a team with expertise, and setting up an operating pilot facility for nearly three years. With a supportive policy environment for early-years childcare services, along with our core strengths and network presence, we are confident to see further growth in this service unit, and it becoming an integral part of a refined and expanded service offerings for 0-6-year-olds,” concluded Ms. Shi.

Mr. Hao Gu, Chief Financial Officer of RYB, added, “In the second quarter, the Company’s revenues came under pressure as prolonged facility closures were observed due to Covid-19 impacts across regions. However, we actively executed strict measures to reduce expenses and expenditures and control cash outflows. As compared to the first quarter, the gross and operating losses also significantly narrowed. Our directly operated facilities have started to resume operation in the second quarter, and with the upcoming semester starting in September, we expect to see significant improvement in the Company’s operating cash flow. We are pleased that at the end of the second quarter, with the exception of facilities in a few places including Beijing and Wuhan, most of our directly operated kindergartens had re-opened. Thanks to the comprehensive planning beforehand and meticulous advance preparation, we are happy to report a satisfactory attendance rate, or rate of return to our facilities of approximately 80% pre-Covid-19 enrollment levels. Additionally, for the facilities in Beijing, related government authorities have recently announced a clear schedule for re-opening in September. Our faculty and staff members have made preparations and are ready to welcome students back to kindergartens once those facilities reopen.”

“In the process of upgrading our services and our business transformation, we will make use of the advantages of our existing facility network and enrollment and leverage other resources to achieve better performance and long-term growth efficiently,” concluded Mr. Gu.

Second Quarter 2020 Financial Results

Net Revenues

Net revenues for the second quarter of 2020 were $12.8 million, compared with $53.6 million for the same quarter of 2019.

Service revenues for the second quarter of 2020 were $11.6 million, compared with $48.2 million for the same quarter of 2019. The decrease was caused by decreased tuition fees as the temporary closure of the facilities in China. While over 60% of the directly operated facilities in China have gradually resumed operation starting from the late May, they remained closed for the most of this quarter due to the Covid-19 pandemic. Franchise services revenues also decreased due to the slow-down of play-and-learn franchise expansion and lower revenue generated from franchisees as the vast majority of the franchised facilities have just resumed operation since the end of May.

Products revenues for the second quarter of 2020 were $1.2 million, compared with $5.4 million for the same quarter of 2019. The decrease was due to a significant decrease in the amount of merchandise sold through the Company’s franchise network as the franchisees’ facilities are still in the warm-up period as they have just resumed operation during the late of this quarter.

Cost of Revenues

Cost of revenues for the second quarter of 2020 was $22.3 million, a 46.4% decrease from $41.6 million for the same quarter of 2020. Cost of revenues for services for the second quarter of 2020 was $21.8 million, compared with $38.8 million for the same quarter of 2019. The decrease was mainly driven by a decrease in the direct cost as those facilities remained temporarily closed during the most of the quarter and various cost management steps have been taken by the Company in response to Covid-19, such as reducing labor cost and discretionary spending, especially for business initiatives facing more serious negative impact in the near term. Cost of products revenues for the second quarter of 2020 was $0.6 million, compared with $2.8 million for the same quarter of 2019. The decrease was generally in line with the decrease in products revenues.

Gross Profit/loss

As a result of the foregoing, gross loss for the second quarter of 2020 was $9.5 million, compared with gross profit of $11.9 million for the same quarter of 2019.

Operating Expenses

Total operating expenses for the second quarter of 2020 were $5.4 million, compared with $6.6 million for the same quarter of 2019. Excluding share-based compensation expenses, operating expenses were $4.6 million, a decrease of 18.6% from $5.7 million for the second quarter of 2019.

Selling expenses for the second quarter of 2020 were $0.1 million, compared with $0.7 million for the same quarter of 2019.

G&A expenses for the second quarter of 2020 were $5.3 million, a 10.2% decrease from $5.9 million for the same quarter of 2019. Excluding share-based compensation expenses, G&A expenses were $4.5 million for the second quarter of 2020, a 9.0% decrease from $4.9 million for the same quarter of 2019. The decrease in G&A expenses excluding share-based compensation expenses was primarily driven by the decrease in G&A expenses in China as a result of more efforts made by the Company on cost control and reducing discretionary spending to cope with the Covid-19 outbreak. The share-based compensation expenses included in G&A expenses were $0.8 million for the quarter.

Operating Income/loss

Operating loss for the second quarter of 2020 was $14.9 million, compared with $5.3 million of operating income for the same quarter last year. Adjusted operating loss[3] was $14.1 million for the second quarter of 2020, compared with $6.3 million of adjusted operating income for the same quarter of 2019.

Net Income/loss

Net loss attributable to ordinary shareholders of RYB for the second quarter of 2020 was $12.8 million, compared with $2.9 million of net income attributable to ordinary shareholders of RYB for the second quarter of 2019. Adjusted net loss attributable to ordinary shareholders of RYB, which excludes the impact of $0.8 million of share-based compensation expense was $12.0 million, compared with $3.9 million of adjusted net income attributable to ordinary shareholders of RYB for the second quarter of 2019.

Basic and diluted net loss per American depositary share (“ADS”) attributable to ordinary shareholders of RYB for the second quarter of 2020 were $0.46 and $0.46, respectively, compared with basic and diluted net income per ADS of $0.11 and $0.10, respectively for the second quarter of 2019. Each ADS represents one Class A ordinary share.

Adjusted basic and diluted net loss per ADS attributable to ordinary shareholders[4] of RYB for the second quarter of 2020 were $0.43 and $0.43, respectively, compared with adjusted basic and diluted net income per ADS of $0.14 and $0.13, respectively for the second quarter of 2019.

EBITDA[5] for the second quarter of 2020 was a loss of $10.2 million, compared with an income of $8.2 million for the second quarter of 2019. Adjusted EBITDA[6] for the second quarter of 2020 was a loss of $9.4 million, compared with an income of $9.2 million for the second quarter of 2019.

Operating Cash Flow 

Cash used in operating activities was $5.0 million during the second quarter of 2020, compared with $2.9 million cash used in operating activities during the second quarter of 2019.

Balance Sheet

As of June 30, 2020, the Company had total cash and cash equivalents of $48.3 million, a decrease from $68.7 million as of December 31, 2019. The decrease in cash and cash equivalents balances was mainly due to the operating cash outflow of $19.0 million during the first half of 2020 as a result of the disruption of the pandemic.

First Six Months of 2020 Financial Results

Net Revenues

Net revenues for the first six months of 2020 were $30.1 million, compared with $87.8 million for the same period of 2019.

Services revenues for the first six months of 2020 were $28.4 million, compared with $80.0 million for the same period last year. The decrease was primarily due to decreased tuition fees as the Company began the temporary closures of all facilities in China beginning in late January as a result of the Covid-19 outbreak, which remained suspended of operation for the most of the first half of 2020. Franchise services revenues also decreased owing to the slow-down of play-and-learn franchise expansion and lower revenue generated from franchisees due to the impact of the Covid-19 as a vast majority of franchised facilities have started to resume operation since the end of May 2020.

Products revenues for the first six months of 2020 were $1.7 million, compared with $7.8 million for the same period in 2019. The decrease was due to a significant decrease in the amount of merchandise sold through the Company’s franchise network as the franchisees’ facilities were temporarily closed during most of the first half of 2020.

Cost of Revenues

Cost of revenues for the first six months of 2020 was $51.2 million, compared with $74.0 million for the first six months of 2019. Cost of revenues for services for the first six months of 2020 was $50.4 million, compared with $70.0 million for the same period of 2019. The decrease was mainly driven by a decrease in the direct cost of those facilities which were temporarily closed during the first half of 2020, stringent cost control measures and certain operational strategy adjusted by the Company, such as reducing resource allocation to the initiatives facing more challenges in the near term. Cost of products revenues for the first six months of 2020 was $0.8 million, compared with $4.0 million for the same period last year. The decrease was in line with the decrease in products revenues.

Gross Profit/loss

Gross loss for the first six months of 2020 was $21.1 million, compared with gross profit of $13.8 million for the same period last year.

Operating Expenses

Total operating expenses for the first six months of 2020 were $19.9 million, compared with $12.5 million for the same period last year. Excluding share-based compensation expenses, operating expenses were $18.3 million for the first six months of 2020.

Selling expenses were $0.4 million for the first six months of 2020, compared with $1.3 million for the same period last year.

G&A expenses for the first six months of 2020 were $11.1 million, compared with $11.2 million for the same period last year. Excluding share-based compensation expenses, G&A expenses were $9.5 million for the first six months of 2020, compared with $9.0 million for the same period of 2019. The increase in G&A expenses excluding share-based compensation expenses was primarily due to the G&A expenses incurred in directly operated facilities in Singapore that were acquired during the second quarter of 2019. The increase was partially offset by the decrease in G&A expenses as a result of stringent cost control measures carried out in China.

Impairment loss on goodwill was $8.5 million for the first half of 2020, compared to nil for the same period last year. Due to the impact of COVID-19 on operations and financial results, the Company concluded that an impairment indicator existed at the end of the first quarter and the fair value of its certain reporting units, primarily those with new initiatives, were less than their carrying value. As a result of these impairment assessments, the Company determined that there was an impairment loss on goodwill of $8.5 million.

Operating Income/loss

Operating loss for the first six months of 2020 was $41.0 million, compared with operating income of $1.3 million for the same period last year. Adjusted operating loss for the first six months of 2020 was $39.4 million, compared with adjusted operating income of $3.5 million for the same period last year.

Net Income/loss

Net loss attributable to ordinary shareholders of RYB for the first six months of 2020 was $39.5 million, compared with $0.6 million of net income attributable to ordinary shareholders of RYB for the same period of 2019. Adjusted net loss attributable to ordinary shareholders of RYB, which excludes the impact of share-based compensation expense and changes in redeemable non-controlling interests, for the first six months of 2020 was $37.9 million, compared with $2.7 million of adjusted net income attributable to ordinary shareholders of RYB for the same period of 2019.

Basic and diluted net loss per ADS attributable to ordinary shareholders of RYB for the first six months of 2020 were $1.43 and $1.43, respectively, compared with basic and diluted net income per ADS attributable to ordinary shareholders of RYB of $0.02 and $0.02, respectively for the same period of 2019. Each ADS represents one Class A ordinary share.

Adjusted basic and diluted net loss per ADS attributable to ordinary shareholders of RYB for the first six months of 2020 were $1.37 and $1.37, respectively, compared with adjusted basic and diluted net income per ADS attributable to ordinary shareholders of RYB of $0.10 and $0.09, respectively for the same period of 2019.

EBITDA for the first six months of 2020 was a loss of $34.9 million, compared with an income of $7.5 million for the same period of 2019. Adjusted EBITDA for the first six months of 2020 was a loss of $33.3 million, compared with an income of $9.8 million for the same period of 2019.

Business Outlook

The majority of our facilities have been reopened as of the date of this press release, and we expect the remaining of our existing kindergartens will be able to resume operations by the end of the third quarter. Based on the information available as of the date of this press release, for the third quarter of 2020, the Company’s management currently expects net revenues to be in the range of $27.0 and $28.0 million.

The above outlook is based on the current market conditions and reflects the Company management’s current review, which is subject to change given the dynamic impact of COVID-19.

Conference Call

Management will hold a conference call at 8:00 a.m. Eastern Time on Friday, August 28, 2020 (8:00 p.m. Beijing Time on August 28, 2020). Listeners may access the call by dialing:

United States (toll free):

1-888-346-8982

International:

1-412-902-4272

China (toll free):

400-120-1203

Hong Kong (toll free):

800-905-945

Participants should dial-in at least 10-15 minutes before the scheduled start time and ask to be connected to the RYB Education, Inc. conference call. 

A telephone replay will be available approximately one hour after the call until September 4, 2020 by dialing:

United States (toll free):

1-877-344-7529

International:

1-412-317-0088

Replay Access Code:

10147536

Additionally, a live and archived webcast of the conference call will be available at http://ir.rybbaby.com.

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.

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 in redeemable non-controlling interest; 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 in redeemable non-controlling interest.

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 enrollment 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
Tel: 86-10-8767-5752
E-mail: [email protected]

The Piacente Group, Inc.
Ross Warner
Tel: +86 (10) 6508-0677
E-mail: [email protected] 

In the United States:
The Piacente Group, Inc. 
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected] 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands of U.S. dollars)



As of


June 30,

2020

December  31, 

 2019

Current assets:



Cash and cash equivalents

48,318

68,728

Term deposits

1,005

Accounts receivable, net

2,142

2,804

Inventories

6,963

7,256

Prepaid expenses and other current assets

10,943

10,279

Amounts due from related parties

349

Loan receivables

566

1,149

Total current assets

68,932

91,570




Non-current assets:



Restricted cash

784

710

Property, plant and equipment, net

47,614

50,142

Intangible assets

15,356

17,700

Goodwill

44,028

52,687

Long-term investment

2,612

5,237

Deferred tax assets

12,884

18,161

Operating lease right-of-use assets

81,947

83,403

Other non-current assets

13,465

16,484

Total assets

287,622

336,094




Liabilities



Current liabilities:



Prepayments from customers, current portion(including prepayments from customers of the consolidated VIEs without recourse to the Group of $6,658 and $5,904 as of June 30, 2020 and December 31, 2019, respectively)

6,658

5,904

Accrued expenses and other current liabilities(including accrued expenses and other current liabilities of the consolidated VIEs without recourse to the Group of $51,137 and $47,825 as of June 30, 2020 and December 31, 2019, respectively)

59,338

56,472

Income taxes payable(including income taxes payable of the consolidated VIEs without recourse to the Group of $13,367 and $14,364 as of June 30, 2020 and December 31, 2019, respectively) 

14,272

14,929

Operating lease liabilities, current portion (including operating lease liabilities of the consolidated VIEs without recourse to the Group of $14,209 and $13,068 as of June 30, 2020 and December 31, 2019, respectively)

17,350

16,399

Deferred revenue, current portion(including deferred revenue of the consolidated VIEs without recourse to the Group of $27,413 and $30,266 as of June 30, 2020 and December 31, 2019, respectively)

28,978

31,993

Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Group of nil and $124 as of June 30, 2020 and December 31, 2019, respectively)

124

Long-term debt, current portion (including long-term debt of the consolidated VIEs without recourse to the Group of nil and nil as of June 30, 2020 and December 31, 2019, respectively)

45

87

Total current liabilities

126,641

125,908




Non-current liabilities:



Prepayments from customers, non-current portion (including prepayments from customers of the consolidated VIEs without recourse to the Group of $1,252 and $2,508 as of June 30, 2020 and December 31, 2019, respectively)

1,252

2,508

Deferred revenue, non-current portion (including deferred revenue of the consolidated VIEs without recourse to the Group of $3,841 and $4,206 as of June 30, 2020 and December 31, 2019, respectively)

5,146

5,531

Operating lease liabilities, non-current portion (including operating lease liabilities of the consolidated VIEs without recourse to the Group of $66,696 and $68,509 as of June 30, 2020 and December 31, 2019, respectively) 

70,402

71,012

Other non-current liabilities (including other non-current liabilities of the consolidated VIEs without recourse to the Group of $8,855 and $9,167 as of June 30, 2020 and December 31, 2019, respectively) 

10,732

11,034

Deferred income tax liabilities (including deferred income tax liabilities of the consolidated VIEs without recourse to the Group of $671 and $1,271 as of June 30, 2020 and December 31, 2019, respectively) 

2,715

3,384

Total liabilities

216,888

219,377





 

Mezzanine equity

Redeemable non-controlling interests

 

8,925

 

8,801

 

Equity



Ordinary shares

29

29

Treasury stock

(11,116)

(12,000)

Additional paid-in capital

140,569

139,843

Statutory reserve

4,060

4,060

Accumulated other comprehensive (loss) income

(1,277)

141

Accumulated deficit

(73,430)

(33,553)

Total RYB Education, Inc. shareholders’ equity

58,835

98,520

Non-controlling interest

2,974

9,396

Total equity

61,809

107,916

Total liabilities, mezzanine equity and total equity

287,622

336,094






UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands of U.S. dollars, except share, ADS, per share and per ADS data)




Three Months Ended June 30,  

 

   Six Months Ended June 30,

 


2020

2019

2020

2019

Net revenues:





          Services

11,596

48,186

28,388

80,029

          Products

1,175

5,365

1,702

7,786

Total net revenues

12,771

53,551

30,090

87,815

Cost of revenues:





          Services

21,758

38,840

50,413

70,036

          Products

557

2,779

813

4,009

Total cost of revenues

22,315

41,619

51,226

74,045

Gross (loss) profit

(9,544)

11,932

(21,136)

13,770






Operating expenses





          Selling expenses

124

733

356

1,283

          General and administrative

5,277

5,878

11,088

11,201

          Impairment loss on goodwill

8,454






Total operating expenses

5,401

6,611

19,898

12,484






Operating (loss) income

(14,945)

5,321

(41,034)

1,286

Interest income

136

355

185

560

Government subsidy income

1,742

95

1,887

220

Gain(loss) on disposal of subsidiaries

48

(416)

48

281






(Loss) income before income taxes

(13,019)

5,355

(38,914)

2,347

Less: Income tax expenses

566

1,798

4,788

1,361






(Loss) income before loss in equity method investments

 

(13,585)

3,557

 

(43,702)

986

Loss from equity method investments

(116)

(183)

(2,009)

(296)







Net (loss) income

(13,701)

3,374

(45,711)

690

Less: Net (loss) income attributable to non-controlling interest

 

(854)

 

431

 

(6,247)

239






Less: Decrease in redeemable non-controlling interests

 

Net (loss) income attributable to ordinary shareholders of RYB Education, Inc.

 

 

(12,847)

                        

 

2,943

 

 

(39,464)

                             

(143)

 

594











Net (loss) income per share attributable to ordinary shareholders of RYB Education, Inc.





          Basic

(0.46)

0.11

(1.43)

0.02

          Diluted

(0.46)

0.10

(1.43)

0.02

Net (loss) income per ADS attributable to ordinary shareholders of RYB Education, Inc. (Note 1)





          Basic

(0.46)

0.11

(1.43)

0.02

          Diluted

(0.46)

0.10

(1.43)

0.02






Weighted average shares used in calculating net (loss) income per ordinary share





          Basic

27,694,997

27,904,877

27,688,253

28,466,197

          Diluted

27,694,997

29,239,156

27,688,253

29,813,542















UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands of U.S. dollars, except share, ADS, per share and per ADS data)




Three Months Ended June 30,

Six Months Ended June 30,



2020

2019

2020

2019

Net (loss) income


(13,701)

3,374

(45,711)

690

Other comprehensive loss, net of tax of nil:






Change in cumulative foreign currency translation adjustments


 

(256)

 

(178)

 

(1,765)

 

(241)

Total comprehensive (loss) income


(13,957)

3,196

(47,476)

449

Less: Comprehensive (loss) income attributable to non-controlling interest


 

(711)

 

319

 

(6,595)

 

276

Comprehensive (loss) income attributable to RYB Education, Inc.


(13,246)

2,877

(40,881)

173

Note 1:Each ADS represents one Class A ordinary share.

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 June 30,

Six Months Ended June 30,




2020

2019

2020

2019






Operating (loss) income

(14,945)

5,321

(41,034)

1,286

Share-based compensation expenses

810

964

1,610

2,261

Adjusted operating (loss) income

(14,135)

6,285

(39,424)

3,547






Net (loss) income attributable to ordinary shareholders of RYB Education, Inc.

 

(12,847)

 

2,943

 

(39,464)

 

594

Share-based compensation expenses

810

964

1,610

2,261

(Decrease) in redeemable non-controlling interests

 

 

 

 

(143)

Adjusted net (loss) income attributable to ordinary shareholders of RYB Education, Inc.

 

(12,037)

 

3,907

 

(37,854)

 

2,712






Net (loss) income

(13,701)

3,374

(45,711)

690

Add: Income tax expense

566

1,798

4,788

1,361

      Depreciation of property, plant and equipment, and amortization of intangible assets

 

2,968

 

3,027

 

6,004

 

5,468

EBITDA

(10,167)

8,199

(34,919)

7,519

Share-based compensation expenses

810

964

1,610

2,261

Adjusted EBITDA

(9,357)

9,163

(33,309)

9,780






Net (loss)income per ADS attributable to ordinary shareholders of RYB Education, Inc.- Basic (Note1)

(0.46)

0.11

(1.43)

0.02

Net (loss) income per ADS attributable to ordinary shareholders of RYB Education, Inc.- Diluted (Note1)

(0.46)

0.10

(1.43)

0.02






Adjusted net (loss)income per ADS attributable to ordinary shareholders of RYB Education Inc.- Basic (Note1)

(0.43)

0.14

(1.37)

0.10

Adjusted net (loss) income per ADS attributable to ordinary shareholders of RYB Education Inc.- Diluted (Note1)

(0.43)

0.13

(1.37)

0.09






Weighted average shares used in calculating basic net (loss) income per ADS(Note1)

 

27,694,997

 

27,904,877

 

27,688,253

 

28,466,197

Weighted average shares used in calculating diluted net (loss) income per ADS(Note1)

 

27,694,997

 

29,239,156

 

27,688,253

 

29,813,542






Adjusted net (loss) income per share- Basic

(0.43)

0.14

(1.37)

0.10

Adjusted net (loss) income per share- Diluted

(0.43)

0.13

(1.37)

0.09

Note 1:Each ADS represents one Class A ordinary share.


[1] The number of students enrolled refers to the number of students enrolled before the temporary closure of the Company’s facilities in China due to COVID-19 who remained enrolled as at June 30, 2020, and the number of students enrolled in our facilities in Singapore as at June 30, 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 in redeemable non-controlling interests. See “Use of Non-GAAP Financial Measures” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release.

[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.

[4] Adjusted basic and diluted net income (loss) per ADS attributable to ordinary shareholders is a non- GAAP financial measure, which is defined as basic and diluted net income (loss) per ADS attributable to ordinary shareholders excluding share-based compensation expenses and changes in redeemable non-controlling interest. See “Use of Non-GAAP Financial Measures” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release.

[5] EBITDA is defined as net income (loss) excluding depreciation, amortization and income tax expenses. See “Use of Non-GAAP Financial Measures” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release.

[6] Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income (loss) excluding depreciation, amortization, income tax expenses, and share-based compensation expenses. See “Use of Non-GAAP Financial Measures” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release.

SOURCE RYB Education, Inc.

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www.rybbaby.com

Source: https://www.prnewswire.com:443/news-releases/ryb-education-inc-reports-second-quarter-2020-financial-results-301120117.html

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The Film Detective Announces World Premiere of Salem and The Scarlet Letter (2020)

Forty years in the making, The Film Detective is proud to premiere a historic tribute to the city of Salem from legendary independent filmmaker Samuel M. Sherman.

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Forty years in the making, The Film Detective is proud to premiere a historic tribute to the city of Salem from legendary independent filmmaker Samuel M. Sherman.

Press Release updated: Nov 23, 2020 11:00 EST


​​​The Film Detective (TFD), a classic media streaming network and film archive that restores and distributes classic films for today’s cord-cutters announces the worldwide premiere of Salem and The Scarlet Letter (2020) – coming to The Film Detective on Nov. 25, 2020, at 6:30 PM ET.

Independent filmmaker and producer Samuel M. Sherman spearheaded Salem and The Scarlet Letter, both writing and directing this compelling tribute to the historic city of Salem, Massachusetts, and one of its best-remembered residents – Nathaniel Hawthorne.

Originally filmed in 1978, Salem and The Scarlet Letter blends stunning location footage of Salem, including Nathaniel Hawthorne’s birthplace, The House of the Seven Gables, and more. The film explores Salem’s broad history, from the Salem Witch Trials to the inspiration Nathaniel Hawthorne drew from the city to create his famous work, The Scarlet Letter.

The documentary receives the Hollywood treatment with narration from actor John Carradine, prolific player for some of Hollywood’s finest directors, including Cecil B. DeMille and John Ford in works like Stagecoach (1939) and The Ten Commandments (1956). Salem and The Scarlet Letter served as one of many collaborations between Sherman and Carradine, also having worked on Blood of Dracula’s Castle (1969) and Blood of Ghastly Horror (1967), directed by Sherman’s late filmmaking partner and co-founder of Independent-International Pictures, Al Adamson.

At the core of Salem and The Scarlet Letter is a deep appreciation for Salem’s rich history, perfectly expressed by the film’s subject, Nathaniel Hawthorne, who wrote “This old town of Salem–my native place…possesses, or did possess, a hold on my affections, the force of which I have never realized during my seasons of actual residence here.”

From a single viewing of Salem and The Scarlet Letter, film and history fans alike will have little question as to how Hawthorne found such a fondness for Salem. 

Said director Samuel M. Sherman, “Salem and The Scarlet Letter is a classic project of mine concerning one of my favorite films, the 1934 version of The Scarlet Letter. My first visit to Salem in 1965 so impressed me that I made up my mind to do a documentary about the town and famous author Nathaniel Hawthorne at some time in the future. Phil Hopkins and The Film Detective have made completing this longtime project of mine a reality. I am pleased with the final version and I hope that modern audiences will appreciate it as a viewing prologue to the 1934 The Scarlet Letter for which purpose I originally intended it.”

The Film Detective is proud to bring audiences this cinematic tour of Salem from the comfort of home. Salem and The Scarlet Letter will premiere on Wednesday, Nov. 25 at 6:30 PM ET followed by the 1934 adaptation of The Scarlet Letter.

Subscribers to The Film Detective app can also watch Salem and The Scarlet Letter anytime. For more information, visit www.thefilmdetective.com.

Contact:

Kerry Ryan

kerry@thefilmdetective.com

About The Film Detective:

The Film Detective is a leading streaming network of restored classic programming, distributing its extensive library of 3,000+ hours of film on DVD and Blu-ray and through leading platforms including TCM, NBC, EPIX, Amazon, MeTV, PBS, and more. TFD has released its classic movie app on web, Android, iOS, Roku, Amazon Fire TV, and Apple TV and is available live on Sling, STIRR, Plex, and DistroTV.

Source: The Film Detective

Source: https://www.newswire.com/news/the-film-detective-announces-world-premiere-of-salem-and-the-scarlet-21261970

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ThoughtWorks Honored 2020 Asia-Pacific WEPs Awards by UN Women

BEIJING, Nov. 23, 2020 /PRNewswire/ — November 18th, 2020, ThoughtWorks was invited to join 2020 International Conference on Gender Equality and Corporate Social Responsibility (CSR) & Women’s Empowerment Principles (WEPs) awards ceremony, which was held by UN Women China in partnership…

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Over the years, ThoughtWorks has committed to develop a business and culture environment that promote gender-inclusive and gender equality. The company encourages women in technology to play a greater influence at workplace, marketplace and social community.

Yao Yao, a member of ThoughtWorks China management team, has been actively engaged in development of women in technology. Speaking at the ceremony, Ms. Yao said, “It is a great recognition for ThoughtWorks to be awarded 2020 Asia-Pacific WEPs Awards by UN Women”.

Attended by nearly 150 private sector leaders, social entrepreneurs, civil society representatives along with EU and UN officials, the conference took time to reflect the progress made on gender equality and women empowerment in later stage of the pandemic new norm, challenges and future expectations were also talked at the conference.

In the conference, it emphasized the importance of integrating gender equality into enterprise strategy and enterprise social responsibility projects. Guests shared their experience, best practice and challenges. Enterprise social responsibility projects play a key role at workplace and social equality. Creative practices on female leadership, decent work and digital inclusion were also shared.

At the opening, Smriti Aryal, Head of UN Women China office called on all participants to actively embrace international standards on enterprise commitment, strategy and project proposal; and all the stakeholders should make their voices heard. She mentioned, “The private sector, companies and enterprises have a key role to play. An employer can bring a positive impact by creating decent work opportunities, promoting equal pay for equal work, and reducing the burden of unpaid care work for women. Meanwhile, it is also important for companies to promote the next generation of female leaders as the decision-maker for future business practices”.

Ms. Mu Hong, Director-General of Liaison Department at All China Women’s Federation, presented the work ACWF has done in advancement of gender equality in China, and stressed the importance of adding gender factor to local policy and practice. She said, “Guaranteeing equal economy right and strengthening economic empowerment for women is an important topic, which will be a key part for next round of the Program of China’s Women Development”.

Mr. Nicolas Chapuis, Head of Delegation, European Union Delegation to China, reminded the audience about the European Union’s longstanding commitment towards gender equality. As global leader, the gender equality strategy of EU will continue to make its contribution to a gender equal world. Mr. Chapuis said, “The gender equality strategy is aimed at promote worldwide gender equality and enhance women empowerment. EU will continue to raise gender equality issue in global partnership and political dialogue with the third country. We push for gender equality in EU and beyond.”

Ms. Zhang Haidi, president of the China Federation of the Disabled stressed: “The disabled female is the most disadvantaged group in human society that need help badly, and they are also an important force in promoting peace and development. The sustainable development of humankind needs to rely on and bring benefit to the disabled female.”

In the conference, UN Women presented WEPs Award to 10 prize-winners. As the first WEPs Initiative in Asia-Pacific, the award is intended to applaud model business practices that in compliance with gender equality of Women’s Empowerment Principles proposed by UN Women and United Nations Global Compact. WEPs has 7 principals, encouraging enterprises put gender awareness in the whole value chain of its business.

Yao Yao of ThoughtWorks spoke on behalf of enterprise leadership receiving the award, “For many years, we have been trying our best to influence the society, push for gender-inclusive and gender equality in business world, and women in technology is always the focus. ThoughtWorks finished IT experts title open reply just recently, and female account for 45% of the newly promoted experts! With the helping hands of more fellows, we wish to fulfill our commitment with tangible action by offering bigger platform for these excellent female in technology, so that they can lead by example for females in other industries.”

WEPs is the main tool for enterprises to reach gender equality target of the 2030 Agenda for Sustainable Development. To date, 102 companies in China have pledged action to advance the WEPs, and more than 3,700 companies have done so globally. An international network of like-minded companies, the WEPs platform connects businesses of all sizes across multiple industries, including corporations such as ThoughtWorks, Alcatel-Lucent, IKEA, Microsoft and Unilever, among many others as signatories. The year of 2020 is 10th anniversary since the launch of WEPs.

About the Organizer:

About UN Women

UN Women is the UN organization dedicated to gender equality and the empowerment of women. A global champion for women and girls, UN Women was established to accelerate progress on meeting their needs worldwide. Working in China since 1998, UN Women provides technical and financial assistance to innovative programmes and strategies for gender equality and women’s empowerment.

About the Delegation of the European Union to China

The European Union is represented in China by the Delegation in Beijing. The Delegation was established in Beijing in October 1988.

The Delegation has full diplomatic privileges and immunities with the Head of Delegation accorded full ambassadorial status. The Delegation is responsible for the conduct of official relations between China and the European Union. In all matters pertaining to the European Union, the Delegation works closely with the diplomatic missions of the EU Member States. The Delegation is the vital link between European Union and Chinese government as well as its Diplomatic Corps.

About ThoughtWorks

Established in 1993, ThoughtWorks is a global software consulting company with excellent delivery record. Targeting at clients which are leading players in the world, our services include organization transition advisories, innovative software delivery, UE design and product solutions. ThoughtWorks has a global client base with leading companies in industries like automobile, finance and insurance, healthcare, tourism, transport, retails, e-commerce, energy and public utilities.

Around the world ThoughtWorks has 43 offices in 14 countries with more than 7,000 employees on board. It entered China in 2004 and today has more than 2,000 employees based respectively in 7 cities in Beijing, Hong Kong, Xi’an, Chengdu, Shanghai, Wuhan and Shenzhen.

SOURCE ThoughtWorks

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Source: https://www.prnewswire.com:443/news-releases/thoughtworks-honored-2020-asia-pacific-weps-awards-by-un-women-301178986.html

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ARUP Laboratories Announces the Availability of a Combined Test for COVID-19, Influenza, and RSV

SALT LAKE CITY, Nov. 23, 2020 /PRNewswire/ — ARUP Laboratories today announced the availability to clients nationwide of a combined test to detect and differentiate COVID-19, influenza, and/or respiratory syncytial virus (RSV) in individuals with respiratory symptoms consistent with…

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SALT LAKE CITY, Nov. 23, 2020 /PRNewswire/ — ARUP Laboratories today announced the availability to clients nationwide of a combined test to detect and differentiate COVID-19, influenza, and/or respiratory syncytial virus (RSV) in individuals with respiratory symptoms consistent with COVID-19. The test is the first offered in the United States to be developed using Thermo Fisher Scientific’s TaqMan SARS-CoV-2, Flu A/B, RSV multiplex primer and probes and run on the QuantStudio Real-Time Polymerase Chain Reaction (PCR) platform.

“We are proud to offer this test, which is one of the first available to test for all four viruses,” said Adam Barker, PhD, director of ARUP’s COVID-19 Rapid Response Laboratory. “This single test is a simple, accurate way to determine which virus is the cause of illness as the flu and RSV seasons get underway amid the COVID-19 pandemic.”

ARUP’s Influenza, SARS-CoV-2, and RSV by NAA test detects ribonucleic acid (RNA) from SARS-CoV-2, the virus that causes COVID-19, along with the influenza A and B viruses and RSV. A qualitative test, it also differentiates between the viruses, although it does not differentiate between influenza A and B.

The test can be performed on specimens collected using a deep nasal swab, or on specimens collected from the back of the throat and the front of both nostrils.

It adds to ARUP’s menu of COVID-19-related tests, which includes a molecular diagnostic test for COVID-19 that can be performed on multiple specimen types including saliva.

ARUP also offers two IgG antibody tests to detect previous exposure to SARS-CoV-2, along with numerous tests that help guide treatment of patients with the virus.

“The challenge clinicians face as we enter flu season is unparalleled even if flu and RSV activity remain low,” said ARUP CEO Sherrie L. Perkins, MD, PhD. “We’re pleased that this combination test will help them provide the best patient care possible as the pandemic persists.”

About ARUP Laboratories
Founded in 1984, ARUP Laboratories is a leading national reference laboratory and a nonprofit enterprise of the University of Utah and its Department of Pathology. ARUP offers more than 3,000 tests and test combinations, ranging from routine screening tests to esoteric molecular and genetic assays. ARUP serves clients across the United States, including many of the nation’s top university teaching hospitals and children’s hospitals, as well as multihospital groups, major commercial laboratories, group purchasing organizations, military and other government facilities, and major clinics. In addition, ARUP is a worldwide leader in innovative laboratory research and development, led by the efforts of the ARUP Institute for Clinical and Experimental Pathology®. ARUP is ISO 15189 CAP accredited.

Media Contact
ARUP: Lisa Carricaburu, [email protected], 801-541-5041

SOURCE ARUP Laboratories

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Source: https://www.prnewswire.com:443/news-releases/arup-laboratories-announces-the-availability-of-a-combined-test-for-covid-19-influenza-and-rsv-301178985.html

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