RYB Education Says Fourth Quarter Revenue Rose 15%; Shares Inch Up
RYB Education Inc. (NYSE: RYB), which provides early childhood education services in China, reported today that fourth quarter revenue grew 15.3 percent year-over-year to $45 million.
The Beijing-based company said its net income for the fourth quarter was $600,000, or 2 cents per American depositary share, compared with $200,000, or 1 cents per ADS, in same quarter of 2017.
The company also said cash used in operations was $9.5 million in the fourth quarter of 2018, down from $15 million in the fourth quarter of 2017.
Revenue growth was primarily due to a larger number of students enrolled in RYB's company-operated kindergartens as well as increased tuition fees. Meanwhile, an increase in the amount of merchandise sold through the RYB's franchise network helped the result.
Ping Wei, chief financial officer of RYB said, "Our results were driven by steady enrollment growth, increase in average student payments in our directly operated kindergartens and more products sold in the quarter."
The drop in its cash outflow in the current quarter was primarily due to the payout of IPO-related disbursements and one-off refunds to contracted and potential franchisees in the fourth quarter of 2017.
"In many respects, 2018 was a challenging year, but our fourth quarter results demonstrated the early benefits of our decisive steps to stabilize our business with a razor-sharp focus on security and safety of our children and our unrelenting pursuit of higher quality educational services," said Yanlai Shi, co-founder and chief executive officer of RYB.
The shares of RYB rose 1.5 percent to $8.04 per share today.
The company said it expected revenue between $33 million and $34.5 million in the first quarter of 2019, representing a year-over-year increase of 15 to 20 percent.
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