Puxin Limited (NEW) Reports Q4 Loss of $0.28 on Revenues of $77.3M

Puxin Limited (NYSE: NEW) reported Q4 EPS of ($0.28). Revenue for the quarter came in at $77.3 million.

• Net revenues were RMB531.4 million (US$77.3 million), representing an increase of 24.2% from the fourth quarter of 2017.
• Operating loss was RMB165.9 million, a slight increase of 0.5% from RMB165.2 million in the same period of the prior year.
• Adjusted operating loss[1] was RMB120.7 million, a decrease of 16.2% from RMB144.0 million in the same period of the prior year.
• Net loss attributable to Puxin Limited was RMB239.7 million (US$34.9 million), an increase of 10.3% from RMB217.4 million in the fourth quarter of 2017.
• Adjusted net loss attributable to Puxin Limited[2] was RMB158.9 million, an increase of 6.8% from RMB148.8 million in the same period of the prior year.
• Cash and cash equivalents were RMB778.0 million (US$113.2 million), compared with RMB164.7 million as of December 31, 2017.
• Student enrollments increased by 45.0% to 521,161 compared with 359,528 in the fourth quarter of 2017.

"We finished the year strongly with net revenues increasing 24.2% to RMB531.4 million, at the upper end of our guidance range,\" commented Mr. Yunlong Sha, Chairman and Chief Executive Officer of Puxin. \"We strategically slowed the pace of acquisitions as a result of the new regulations and our IPO last year, but despite this, revenue continued to gain growth momentum on the back of strong organic growth in in student enrollments which increased 45% year-over-year. This demonstrates our strong executional capabilities and the enormous organic growth potential our existing schools have. We fully support the government\'s policies to and firmly believe that a clear and definitive regulatory environment will strengthen the sector as a whole and support its long-term sustainable growth. We acquired Jinan Boya School and Tiancai School during the second half year of last year after thoroughly evaluating their compliance with the new regulations. Tiancai School in particular has a strong market presence in Jinan, Shandong Province and will create synergies with our other K-12 schools in that city."

"We continue to focus on generating growth organically leveraging our Puxin Business System which is critical in improving operational efficiency, resource utilization, and teaching quality. Our utilization rate for the quarter significantly improved to 79% while our retention rate continues to increase from the high levels we saw last year, which were driven in part by organic growth across our network. We also established a business unit in October 2018 that will be fully devoted to developing online education products which we believe will be highly complementary to our existing offline schools."

For earnings history and earnings-related data on Puxin Limited (NEW) click here.

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