UPDATE: Puxin Limited (NEW) Reports Q4 Loss of $0.11 on Revenues of $110.1M

Puxin Limited (NYSE: NEW) reported Q4 EPS of ($0.11). Revenue for the quarter came in at $110.1 million.

Fourth Quarter 2020 Financial and Operational Highlights

• Net revenues were RMB718.3 million (US$110.1 million), a decrease of 16.4% from RMB859.3 million in the fourth quarter of 2019.
• Net loss attributable to Puxin Limited was RMB68.8 million (US$10.5 million), a decrease of 36.8% from RMB108.8 million in the fourth quarter of 2019.
• Adjusted net loss attributable to Puxin Limited[1] was RMB62.4 million (US$9.6 million), a decrease of 32.5% from RMB92.5 million in the fourth quarter of 2019.
• Adjusted EBITDA[2] was RMB(17.8) million (US$(2.7) million), compared to RMB(51.9) million in the fourth quarter of 2019.
• Student enrollments decreased by 12.5% to 763,626 from 872,950 in the fourth quarter of 2019.

Mr. Yunlong Sha, Chairman and Chief Executive Officer of Puxin, commented, "In the fourth quarter of 2020, COVID-19 outbreak rebounded in some cities, but was eventually effectively controlled by the government. In line with local epidemic prevention measures, we had to once again temporarily close some of our learning centers and move the courses online. To ensure the safety and health of every student and staff member, we have strengthened epidemic prevention health measures in our learning centers. Looking back on 2020, while Puxin's total revenues were impacted by the pandemic, our core K-12 tutoring services (excluding Puxin Online School) still achieved a steady growth, with an increase of 8.9% in revenues. During 2020, Puxin had strategically focused on K-12 offline tutoring services by increasing investment in R&D for products designed for elementary school and junior high school students. For instance, we formed a dedicated animation product team, tasked with the mission to enrich the teaching materials for our elementary school students and to increase customer retention rate through enhancing students' interest in learning. Meanwhile, Puxin continued to further develop the 'online merge offline' (OMO) model. The OMO model has allowed us to seamlessly integrate offline and online K-12 tutoring services to provide top-notch services that improved the quality of teaching and customer's satisfaction rate. Moving forward in 2021, with the rebound of the economy of China, Puxin is confident to achieve a high-quality growth in the year."

Mr. Peng Wang, Chief Financial Officer of Puxin, added, "Puxin's unwavering commitment to the K-12 tutoring services and effective cost control measures have empowered us to weather the storm in 2020. Benefitting from the exceptional operational capabilities of our PBS system, the total operating expenses in 2020 fell 17.2% on a year-over-year basis (YoY). Net revenues of K-12 tutoring services (excluding Puxin Online School) achieved RMB2,099.0 million in 2020. We also made a positive progress in adjusted net loss attributable to Puxin Limited of K-12 tutoring services (excluding Puxin Online School), achieving RMB212.0 million, a substantial 137.3% YoY increase. The business of studying abroad tutoring services has not yet fully recovered, with RMB697.6 million in net revenues of studying abroad services in 2020, a decrease of 39.9% YoY from RMB1,160.1 million in 2019. With the widespread of COVID-19 vaccination in China and overseas as well as the anticipation of global economy recovery, we expect the study abroad market to rebound in the coming year. In the near term, we will continue to focus on cost control and margin improvement, target K-12 tutoring services as the core of our growth strategies, implement the OMO strategy more efficiently and improve growth and profitability, in order to deliver a long-term sustainable shareholder value."

Business Outlook

For the first quarter of 2021, based on the information available as of the date of this press release, the Company expects net revenues to be between RMB683.7 million and RMB721.3 million, which represents a decrease of 4% to 9% 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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