- Net Revenue was $4.45 million for the quarter
- Net Income was $0.753 million for the quarter; EPS $0.03
HANGZHOU, China, May 19, 2010 (GLOBE NEWSWIRE) -- China Executive Education Corp. (OTCBB:CECX), a China-based executive training company designed to fit the needs of Chinese entrepreneurs with classes to improve their skills on Marketing, Sales, Public Speaking, Leadership, Business Motivation and a variety of Business Management skills, announced today its financial results for the first quarter of fiscal 2010.
Financial Highlights for the First Quarter ended March 31, 2010
- Total revenue for the first quarter was $4.45 million.
- Gross profit for the first quarter was $2.93 million, yielding a gross margin of 66%.
- Operating income for the first quarter was $1.05 million.
- Net income for the first quarter was $752,572, with a net margin of 17%.
- EPS for the first quarter was $0.03 per basic and diluted share.
Kaien Liang, Chairman and Chief Executive Officer of China Executive Education Corp., commented: "We remain optimistic about the opportunities for continued growth in both the CEO training aspect of our business and our seminar business. We remain focused on our expansion efforts and also marketing strategies to develop our core businesses. We expect full year revenues for the fiscal year 2010 to be in the range of $35 million and $45 million based on the strong demand for core services."
Financial results for the first quarter ended March 31, 2010
China Executive Education reported total revenue of $4.45 million for the first quarter ended March 31, 2010. The Company's proprietary training courses generated 31.3% of its total revenue in the first quarter of 2010, and its featured lectures business generated the remaining 68.7% of total revenue.
Proprietary training courses revenue was $1.39 million for the first quarter of 2010 and was generated through training programs provided to 1,564 of Chinese business owners and executives from multiple provinces and industries during the three months ended March 31, 2010.
Overall cost of sales was $1.51 million, or 34% of revenue, in the first quarter of fiscal 2010. Gross profit was $2.93 million in the first quarter of fiscal 2010. Gross margin for the period was 65.9%. Selling expenses were approximately $0.72 million for the first quarter, or 38.2% of total operating expenses, and consisted primarily of sales commission paid to outside agents for student recruiting and salaries paid to out-source marketing and sales forces. General and administrative ("G&A") expenses were approximately $1.16 million for the first quarter of fiscal 2010, or 61.8% of total operating expenses. Selling and G&A expenses represented 16.2% and 26.2% of total revenues for the quarter, respectively.
Strong first quarter performance was attributable to a number of factors, including strong market demand for quality executive training programs in China and the Company's effective execution of its business formation plan in Hangzhou and Shanghai. The Company believes that its business model and quick establishment in the target market have given it a considerable advantage over its competitors.
Financial Condition
As of March 31, 2010, China Executive Education had approximately $3.78 million in cash and cash equivalents, $4.17 million in working capital, and no long-term debt. Shareholders' equity at March 31, 2010 was approximately $4.34 million, an increase of 24.7% from approximately $3.48 million at December 31, 2009.
Business Outlook
China Executive Education believes that as the number of entrepreneurs and affluent businessmen in China increases, it will be able to continue to expand its network into the commercial cities of China to offer a variety of business programs that serve their needs. The Company believes that its proprietary business training programs serve a need in the rapidly changing and surging economy of China. Both its client base and sales have experienced continuous growth from month to month since its official inception in April 2009. At the same time, the Company looks forward to collaborating with other education consulting companies to offer more courses to its clients in different regions of China, which it believes will continue to lead to a strong increase in the numbers of companies it can serve.
China Executive Education has two primary business lines:
1. The Company's proprietary training courses include one package of 7 courses for CEO and C-Level managers, as well as 21 leadership and personal development courses, which are on the topic of management skills, negotiation skills, leadership skills, public speaking skills, etc. Since the formal launching of its operations in April 2009, the Company has provided training programs to 2,874 Chinese business owners and executives representing different regions, industries, and sizes of business. Some of the Company's top corporate clients have millions of dollars in sales, such as Tieniu Group, Jiangsu Shenhua Real Estate Co., Ltd., Beijing Holliland Enterprise Investment Management Co., Ltd., WanLong Ski Resort, and Shenzhen Baoan Fenda Industrial Co., Ltd.
2. Featured lectures are delivered to a large audience by "world masters" invited by the Company. These world masters are experts or well-known speakers in each relevant field. MYL Business's network of speaking professionals is a leading platform in China at inspiring audiences to new levels of motivation and commitment.
About China Executive Education Corp.
China Executive Education Corp., operating through MYL Business, is a fast-growing executive education company in China that offers comprehensive professional training programs in Shanghai. Through open-enrollment training programs, including proprietary training courses and featured lectures, the company provides Chinese business executives with a different variety of business training such as sales, marketing, leadership development and highly effective personal skill development focused on decision-making skills, negotiation skills, public speaking skills and people skills. The training courses include a 7-course package for CEO, as well as 22 other business development courses. We are also one of very few business education training companies in China which has the reputation and resources to attract the world renowned masters such as guru on management: Tom Peters, guru on leadership: John Maxwell, guru on relationship: John Gray coming to China. China Executive Education Corp. will continue to pave the way for the Chinese entrepreneurs who would like to have greater success going forward and help them go international easier. Since formally launching in April 2009, the company has provided its training programs to 2,874 Chinese business owners and executives from a broad range of industries.
Forward-Looking Statements
This press release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements," including statements regarding the Company's ability to meet its obligations under its various contracts; the timeliness of payments and other economic benefits the Company expects to receive under such contracts; and the Company's ability to maintain its customer relationships and to maintain its ability to pursue its commercial objectives. In addition, the Company's operations are conducted in the PRC and, accordingly, are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe such as risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available at http://www.sec.gov. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
| CHINA EXECUTIVE EDUCATION CORP. AND SUBSIDIARIES | ||||
| (FORMERLY ON DEMAND HEAVY DUTY, CORP) | ||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
|
March 31, 2010 (Unaudited) |
December 31, 2009 |
|||
| CURRENT ASSETS | ||||
| Cash and cash equivalents | $ 3,784,855 | $ 6,381,770 | ||
| Accounts receivable, net of allowance | 29,095 | 33,324 | ||
| Other receivables | 2,748,801 | 1,008,565 | ||
| Advances to vendors | 986,199 | 731,365 | ||
| Total current assets | 7,548,950 | 8,155,024 | ||
| PROPERTY AND EQUIPMENT, NET | 79,346 | 87,369 | ||
| OTHER ASSET | 91,533 | 91,505 | ||
| TOTAL ASSETS | 7,719,829 | 8,333,898 | ||
| CURRENT LIABILITIES | ||||
| Advance from customers | 2,841,047 | 3,628,810 | ||
| Taxes payable | 443,155 | 537,541 | ||
| Payroll payable | 90,449 | 90,419 | ||
| Other payables and accrued liabilities | 1,905 | 592,788 | ||
| Total current liabilities | 3,376,556 | 4,849,558 | ||
| STOCKHOLDERS' EQUITY | ||||
| Common Stock, $0.0001 par value 70,000,000 shares authorized, | ||||
| 22,050,000 shares and 21,560,000 shares issued and outstanding | ||||
| at March 31, 2010 and December 31, 2009, respectively | 22,050 | 21,560 | ||
| Additional paid-in capital | 170,821 | 66,311 | ||
| Statutory reserve | 358,026 | 358,026 | ||
| Retained earnings | 3,901,440 | 3,131,806 | ||
| Accumulated other comprehensive income | 3,032 | 1,591 | ||
| Total stockholders' equity | 4,455,369 | 3,579,295 | ||
| Non-controlling interest | (112,096) | (94,955) | ||
| Total equity | 4,343,273 | 3,484,340 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 7,719,829 | $ 8,333,898 | ||
|
CHINA EXECUTIVE EDUCATION CORP. AND SUBSIDIARIES |
||
| (FORMERLY ON DEMAND HEAVY DUTY, CORP) | ||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||
| (UNAUDITED) | ||
| For the three months ended March 31, | ||
| 2010 | 2009 | |
| Revenues | $ 4,445,631 | $ -- |
| Cost of revenue | 1,514,745 | -- |
| Gross profit | 2,930,886 | -- |
| Operating expenses | ||
| Selling expenses | 719,101 | -- |
| General and administrative expenses | 1,163,282 | -- |
| Total operating expenses | 1,882,383 | -- |
| Income from operations | 1,048,503 | -- |
| Other income (expenses) | 238 | -- |
| Income before income taxes | 1,048,741 | -- |
| Provision for income taxes | 296,169 | -- |
| Net income | 752,572 | -- |
| Less: net income attributable to non-controlling interest | (17,062) | -- |
| Net income attributable to the Company | 769,634 | -- |
| Comprehensive income | ||
| Net income | 752,572 | -- |
| Foreign currency translation gain | 1,441 | -- |
| Total comprehensive Income | 754,013 | -- |
| Less: net income attributable to non-controlling interest | (17,062) | |
| Comprehensive income attributable to the Company | $ 771,075 | $ -- |
| Basic and diluted income per common share | $ 0.03 | $ -- |
| Basic and diluted weighted average common shares outstanding | 21,795,222 | 21,560,000 |
| This information is intended to be reviewed in conjunction with the Company's filings with the Securities and Exchange Commission. | ||