CEU has built a consistently profitable, high-margin business model: 78% gross profit in online education through the first nine months of 2009, 75% in its training centers, 78% company-wide. Its growth rates are equally eye-popping: gross revenues up 69% year-over-year in the first nine months, net earnings up 68%.
From the Company’s earnings press release:
nancial Highlights for the Three Months Ended September 30, 2009
- Total revenue increased 43.3% year-over-year to $10.23 million, compared to revenue of $7.15 million in the third quarter of fiscal 2008.
- Net income increased 51.4% year-over-year to $4.17 million, compared to net income of $2.76 million in the third quarter of fiscal 2008.
- EPS was $0.16 per fully diluted share, compared to EPS of $0.11 per fully diluted share in the third quarter of fiscal 2008.
- Operating income totalled $4.44 million, compared to an operating income of $2.86 million in the third quarter of 2008.
- Gross profit rose 42.7% to $8.22 million or 80.4% of sales, compared to 80.7% of sales or $5.76 million in the third quarter of 2008.
The Company is uniquely positioned to fill the void in the two leading areas of China’s highly fragmented private education market: exam-oriented and test-preparation products and services for students age 6-18, and vocational skills and professional certification training for adults age 18 and up.
CEU’s online education business generates more than two-thirds of its revenues. Through its website, CEU offers more than 300,000 sets of exam-oriented testing papers, coursework and video-on-demand – all downloadable – for students at all levels from elementary school to university. Students are issued rechargeable debit cards to purchase these materials.
It’s a formula that adds up to success – for China Education Alliance and for its shareholders.
No comments:
Post a Comment