Puxin Limited (NEW) Reports Q3 EPS of $0.07

Puxin Limited (NYSE: NEW) reported Q3 EPS of $0.07, versus ($0.62) reported last year. Revenue for the quarter came in at $139.4 million.

Third Quarter 2019 Financial and Operational Highlights

• Net revenues were RMB996.0 million (US$139.4 million), an increase of 48.7% from RMB669.7 million in the third quarter of 2018.
• Operating income was RMB41.5 million (US$5.8 million), compared to operating loss of RMB(61.1) million in the third quarter of 2018.
• Adjusted operating income (loss)[1] was RMB52.2 million (US$7.3 million), compared to RMB(41.8) million in the third quarter of 2018.
• Net income attributable to Puxin Limited was RMB33.7 million (US$4.7 million), compared to net loss of RMB(50.2) million in the third quarter of 2018.
• Adjusted net income (loss) attributable to Puxin Limited[2] was RMB43.5 million (US$6.1 million), compared to RMB(51.0) million in the third quarter of 2018.
• Adjusted EBITDA[3] was RMB80.6 million (US$11.3 million), compared to RMB(20.3) million in the third quarter of 2018.
• Cash and cash equivalents were RMB322.0 million (US$45.0 million), compared to RMB778.0 million as of December 31, 2018.
• Student enrollments increased by 60.2% to 871,896 from 544,253 in the third quarter of 2018.

Mr. Yunlong Sha, Chairman and Chief Executive Officer of Puxin, commented, "the third quarter of 2019 was an inspiring period and we are delighted to announce solid results. To highlight, Puxin has achieved profitability on an operational basis for the first time. Net revenues grew 48.7% year-over-year to RMB996.0 million, beating previous expectation. In particular, our K-12 education service line performed exceptionally well. Excluding financial impact from online school and headquarter, net revenues increased by 86.4% year-over-year and the operating profit increased by 667.1% year-over-year. In the meantime, excluding financial impact from online school and headquarter, Puxin\'s study-abroad services had its first positive quarterly operating margin at 8.5% since the acquisition of Global Education and ZMN Education in 2017."

"Puxin continues to scale up at a steady pace and we believe this can be attributed to both our 'acquisition and integration\' strategy as well as excellent organic growth of our existing portfolio. Improved operational efficiency also contributed to our quarterly performance. For example, student enrollments increased by 60.2%, reaching a total number of 871,896 enrollments. In addition, the retention rate reached 70.3% which further solidified Puxin's position as a top-tier education service provider. Looking ahead, with eight newly acquired schools, we will continue our dedication to realizing future growth fueled by our 'acquisition and integration\' strategy. Overall, we are optimistic about the outlook for the education market in China and are committed to sustain the solid growth momentum in the future."

Business Outlook

For the fourth quarter of 2019, based on the information available as of the date of this press release, the Company expects net revenues to be between RMB770.6 million and RMB797.2 million, which represents an increase of 45% to 50% year-over-year. These forecasts reflect the Company\'s current and preliminary views on the market and operational conditions, which are subject to change.

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

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