Puxin Limited (NEW) Reports Q4 Loss of $0.15

Puxin Limited (NYSE: NEW) reported Q4 EPS of ($0.15). Revenue for the quarter came in at $123.4 million.

Fourth Quarter 2019 Financial and Operational Highlights

• Net revenues were RMB859.3 million (US$123.4 million), an increase of 61.7% from RMB531.4 million in the fourth quarter of 2018.
• Operating loss was RMB93.8 million (US$13.5 million), a decrease of 43.4% from RMB165.9 million in the fourth quarter of 2018.
• Adjusted operating loss[1] was RMB84.2 million (US$12.1 million), a decrease of 30.3% from RMB120.7 million in the fourth quarter of 2018.
• Net loss attributable to Puxin Limited was RMB108.8 million (US$15.6 million), a decrease of 54.6% from RMB239.7 million in the fourth quarter of 2018.
• Adjusted net loss attributable to Puxin Limited[2] was RMB92.5 million (US$13.3 million), a decrease of 41.8% from RMB158.9 million in the fourth quarter of 2018.
• Adjusted EBITDA[3] was RMB(51.8) million (US$(7.5) million), compared to RMB(95.4) million in the fourth quarter of 2018.
• Student enrollments increased by 67.5% to 872,950 from 521,161 in the fourth quarter of 2018.

Mr. Yunlong Sha, Chairman and Chief Executive Officer of Puxin, commented, "2019 was a very inspiring year for the education industry. Following the Online-Merge-Offline ("OMO") trend in after-school tutoring market, Puxin has put forth significant efforts in both online and offline markets. In the offline space, we have not only re-engaged mergers and acquisitions ("M&As") activities, but we have also leveraged Puxin Business System's capabilities to maintain the high organic growth rate for our K-12 business. Our online business has been developing quickly benefiting from our investments in technologies and personnel. Our belief, 'online teaching and offline tutoring,' has been widely acknowledged by students and parents alike – total student enrollments grew 55.6% to 2.87 million. Looking ahead, Puxin has faith to provide higher quality education services to Chinese students while consolidating the domestic market."

Mr. Peng Wang, Chief Financial Officer of Puxin, added, "We are pleased to announce that the fourth quarter earnings continue to be very encouraging. Net revenues this quarter increase by 61.7% year-over-year and gross profit margin once again exceeded 45%. Specifically, in the fourth quarter of 2019, net revenues of K-12 tutoring services and study-abroad tutoring services impressively grew at 95.3% and 18.8% year-over-year. In 2019, the triple-engine strategy which combined organic growth, M&As and OMO, enabled Puxin to secure a 39.3% year-over-year increase in net revenues to RMB3,104.0 million. Puxin Online School, our strategic project of online K-12 group class courses initiated in November 2018, has achieved substantial development in 2019. Marching into 2020, we will continue to further develop the three business lines in a sustainable manner while leveraging our operational expertise."

Business Outlook

For the first quarter of 2020, based on the information available as of the date of this press release, the Company expects net revenues to be between RMB708.0 million and RMB738.8 million, which represents an increase of 15% to 20% 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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