Puxin Limited (NEW) Reports Q2 EPS of $0.07

Puxin Limited (NYSE: NEW) reported Q2 EPS of $0.07.

Highlights for the Second Quarter Ended June 30, 2020

• Net revenues were RMB601.1 million (US$85.1 million), a decrease of 5.0% from RMB632.9 million in the second quarter of 2019.
• Operating loss was RMB25.8 million (US$3.7 million), a decrease of 84.7% from RMB168.7 million in the second quarter of 2019.
• Adjusted operating loss[1] was RMB19.1 million (US$2.7 million), a decrease of 64.3% from RMB53.3 million in the second quarter of 2019.
• Net income attributable to Puxin Limited was RMB36.6 million (US$5.2 million), compared to net loss attributable to Puxin Limited of RMB194.6 million in the same period of 2019.
• Adjusted net income attributable to Puxin Limited[2] was RMB45.2 million (US$6.4 million), compared to adjusted net loss attributable to Puxin Limited of RMB60.7 million in the second quarter of 2019.
• Adjusted EBITDA[3] was RMB80.4 million (US$11.4 million), compared to RMB(25.8) million in the second quarter of 2019.
• Student enrollments increased by 18.1% to 856,674 from 725,118 for the second quarter of 2019.

Mr. Yunlong Sha, Chairman and Chief Executive Officer of Puxin, commented, "During the second quarter of 2020, Puxin spared no effort in gradually resuming classes and business operations under the guidance of the Ministry of Education and the National Health Commission. We have once again won the recognition of students and parents with our excellent teaching quality: accordingly, student enrollments increased by 18.1% year-over-year. Net revenues of K-12, the core business segment of Puxin, increased by 14.0% year-over-year. Meanwhile, Puxin Online School successfully completed a smooth online migration of the offline courses and achieved a high rate of course completion – its net revenues increased more than six times year-over-year. Looking ahead at post COVID-19 recovery, we will never slacken our efforts. We plan to further implement our K-12-oriented Online-Merge-Offline strategy and target to maintain a robust growth."

Mr. Peng Wang, Chief Financial Officer of Puxin, commented, "We are pleased to see an encouraging recovery of the after-school tutoring industry in China. In the second quarter of 2020, Puxin's core business segments obtained a solid organic growth. Although study-abroad services are still facing a downturn, the EBITDA of study-abroad business turned positive to RMB4.0 million. Progress is also seen in cost control. Our non-GAAP selling expenses decreased by 12.4% year-over-year as a result of adjusted marketing and sales strategy, and non-GAAP administrative expenses dropped by 30.3% year-over-year. In the future, Puxin will continue to implement the dual-engine strategy of 'organic growth + M&A' and regularly review the acquired schools' revenues, non-GAAP income, as well as student enrollments to evaluate this strategy's effectiveness. We are confident to present our achievements of this strategy, advanced competitiveness of core business segments, operational and financial performance as well as sustainable shareholder value."

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

You May Also Be Interested In

• Citi agrees to acquire rewards platform Kard Financial
• Lument Finance Trust (LFT) Misses Q2 EPS by 17c
• Eledon Pharmaceuticals, Inc. (ELDN) Misses Q2 EPS by 12c