Puxin Turns To Profit In Q1, Despite Weak Student Enrollments; Sees Higher Revenues In Q2

(RTTNews) - Chinese after-school education services provider Puxin Limited (NEW) reported Monday that its first-quarter net income attributable to Puxin was 37.8 million yuan or $5.8 million, compared to net loss of 43.5 million yuan last year. Earnings per ADS were 0.06 yuan or $0.01, compared to net loss per ADS of 0.50 yuan a year ago.

Adjusted net income attributable was 9.6 million yuan or $1.5 million, compared to last year's 25.4 million yuan. Adjusted net income per ADS attributable were 0.11 yuan or $0.02, compared to 0.29 yuan last year.

Operating income was 6.5 million yuan or $1.0 million, an increase of 78.9 percent from the prior year.

Net revenues decreased 8.6 percent to 686.8 million yuan or $104.8 million from 751.3 million yuan a year ago. This decrease was primarily due to a 7.1 percent decrease in student enrollments to 539,355.

Looking ahead for the second quarter, the company expects net revenues to be between 661.2 million yuan and 691.3 million yuan, which represents an increase of 10 percent to 15 percent year-over-year.

As student retention increases and PBS system is strengthened, the company said it is confident in improving profitability in a long run.