SOURCE: ATA Inc.

ATA Inc.

May 28, 2015 21:45 ET

ATA Reports Fiscal 2015 Fourth Quarter and Year-End Financial Results

Company to Hold Conference Call on May 29, 2015, at 8 a.m. ET

BEIJING, CHINA--(Marketwired - May 28, 2015) -  ATA Inc. ("ATA" or the "Company") (NASDAQ: ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced preliminary unaudited financial results for its fiscal fourth quarter and year ended March 31, 2015 ("Fourth Quarter 2015" and "Fiscal Year 2015," respectively).

Fiscal Year 2015 Financial and Operating Highlights (percentage changes and comparisons against fiscal year ended March 31, 2014 ("Fiscal Year 2014"))

  • Net revenues of RMB350.2 million (US$56.5 million), which exceeds the Company's previously revised net revenue guidance range of RMB340.0 million to RMB350.0 million, compared to RMB384.7 million, as a result of decreased revenue contributions from the testing services business, which was primarily due to the termination of the exclusive distributor contract for TOEIC in Fiscal Year 2014
  • Gross profit of RMB177.6 million (US$28.7 million), compared to RMB196.2 million
  • Income from operations of RMB31.8 million (US$5.1 million), compared to RMB42.5 million, as a result of decreased revenue contributions from the testing services business and increased expenses related to the development of the Company's consumer initiatives in Fiscal Year 2015
  • Net income of RMB23.1 million (US$3.7 million), compared to RMB27.3 million
  • Adjusted net income excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) of RMB31.2 million (US$5.0 million), which is within the Company's previously announced guidance range of RMB28.0 million to RMB33.0 million, compared to RMB37.9 million
  • Basic and diluted earnings per ADS were both RMB0.98 (US$0.16). Basic and diluted earnings per ADS excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) for Fiscal Year 2015 were both RMB1.34 (US$0.22).
  • Net cash provided by operating activities of RMB45.9 million (US$7.4 million). As of March 31, 2015, ATA had cash and cash equivalents of RMB240.8 million (US$38.8 million) and no long-term debt.
  • Delivered approximately 8.8 million billable tests, compared to 9.4 million billable tests.

Fourth Quarter 2015 Financial and Operating Highlights (percentage changes and comparisons against fiscal fourth quarter ended March 31, 2014 ("Fourth Quarter 2014"))

  • Net revenues of RMB40.3 million (US$6.5 million), compared to RMB58.7 million, as a result of decreased revenue contributions from the testing services business
  • Gross profit of RMB19.5 million (US$3.2 million), compared to RMB33.6 million
  • Loss from operations of RMB15.8 million (US$2.5 million), compared to loss from operations of RMB1.3 million, primarily due to decreased revenue contributions from the testing services business
  • Net loss of RMB15.0 million (US$2.4 million), compared to net loss of RMB13.4 million
  • Adjusted net loss excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) of RMB10.3 million (US$1.7 million), compared to adjusted net loss of RMB9.6 million
  • Basic and diluted losses per ADS excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) for Fourth Quarter 2015 were both RMB0.46 (US$0.08).
  • Delivered approximately 1.0 million billable tests, compared to 1.3 million billable tests.

Fiscal Year 2016 Outlook

  • For the fiscal year ending March 31, 2016 ("Fiscal Year 2016"), ATA expects net revenues of between RMB360.0 million and RMB380.0 million and non-GAAP net income (adjusted net income, which excludes share-based compensation expense and foreign currency exchange gain/loss) of between RMB28.0 million and RMB38.0 million, which takes into account the operating results of ATA's joint venture and associated companies focused on the consumer market, all of which are at a stage of early business development.
  • For the quarter ending June 30, 2015 ("First Quarter 2016"), ATA expects net revenues of between RMB84.0 million and RMB94.0 million.

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "During Fiscal Year 2015, we launched a number of new consumer initiatives that we believe will be the primary drivers of the Company's future growth. This includes Zhi Shang, the joint venture with New Oriental Education & Technology Group ('New Oriental'), which launched its online education and training management platform for working professionals in China's financial securities industry in April 2015. We are also excited about the positive reception of Exam Inventory Navigator, our self-developed mobile application that provides current and potential test takers with access to tools and information on various test-taking needs, including registration, checking scores, and study aids. Since its launch in June 2014, the application has grown its activated user base to 650,000, up from approximately 550,000 at the end of the fiscal third quarter ended December 31, 2014 ('Third Quarter 2015'). On April 1, 2015, we signed a contract with Zhi Shang to continue the development of Exam Inventory Navigator. We believe partnering with Zhi Shang will accelerate the expansion of Exam Inventory Navigator's capabilities and user base. During Fiscal Year 2015, we also expanded into and continue to actively work on consumer initiatives in the online continuing education, K-12, language study, and study abroad markets. ATA recently announced that it is exploring the potential of restructuring its testing services business into a wholly-owned subsidiary of ATA and listing it separately on the New Third Board, an emerging over-the-counter market in China. We believe doing so could be an opportunity to accelerate the growth of our core testing services business, while enhancing our business prospects, given ATA's greater brand recognition in China."

Mr. Ma continued, "We made significant strides on our new consumer-focused efforts. We delivered approximately 8.8 million billable tests during Fiscal Year 2015, which included increased exam volumes for the National Unified Certified Public Accountants ('CPA') exam and the Securities Association of China ('SAC') exam. However, this represents a decrease from 9.4 million billable tests delivered in Fiscal Year 2014. During Fiscal Year 2015, ATA continued building its relationship with Cambridge English Learning Assessment ('Cambridge English'), one of the premier global providers of language instruction for students and teachers of English, and were pleased that Cambridge English believes our mobile testing system ('MTS') to be the most viable and effective solution for launching their computer-based Young Learners Exam across its global markets. With MTS, Cambridge English has implemented the Young Learners Exam in 18 markets, and we look forward to continue working with them on expanding this program to additional markets/countries."

Operating Review
In Fourth Quarter 2015, ATA delivered a total of 1.0 million billable tests, compared to 1.3 million billable tests in Fourth Quarter 2014. In Fiscal Year 2015, ATA delivered a total of 8.8 million billable tests, compared to 9.4 million in Fiscal Year 2014. The Company had a network of 2,989 authorized test centers throughout China as of March 31, 2015, which the Company believes to be the largest test center network of any commercial testing service provider in China. ATA has delivered approximately 66.1 million billable tests since it began operations in 1999.

GAAP Results

Fiscal Year 2015
For Fiscal Year 2015, ATA's total net revenues were RMB350.2 million (US$56.5 million), compared to RMB384.7 million in Fiscal Year 2014, primarily as a result of decreased revenue contributions from the testing services business.

Net revenues from the testing services business were RMB319.1 million (US$51.5 million) in Fiscal Year 2015, compared to RMB358.8 million in Fiscal Year 2014, primarily due to lower revenue contributions from TOEIC, which was a result of the termination of the exclusive distributor contract between ETS and ATA in Fiscal Year 2014. Decreased revenues from certain HR Select banking clients and traditional testing services also impacted total net revenues.

Net revenues from test preparation and training solutions were relatively flat at RMB5.7 million (US$0.9 million) in Fiscal Year 2015, compared to RMB5.9 million in Fiscal Year 2014.

Other revenues increased 27.7% to RMB25.4 million (US$4.1 million) in Fiscal Year 2015, primarily due to supplemental rental income from the Company leasing office space in its previous headquarters building.

Gross profit for Fiscal Year 2015 was RMB177.6 million (US$28.7 million), compared to RMB196.2 million in Fiscal Year 2014. Gross margin was 50.7% in Fiscal Year 2015, compared to 51.0% in Fiscal Year 2014.

Operating expenses for Fiscal Year 2015 decreased 4.4% to RMB147.9 million (US$23.9 million), from RMB154.8 million in Fiscal Year 2014, primarily due to increased expenses in Fiscal Year 2014 as a result of the impairment loss related to prepaid royalties to ETS.

Income from operations in Fiscal Year 2015 was RMB31.8 million (US$5.1 million), compared to RMB42.5 million in Fiscal Year 2014, primarily due to a lower revenue base resulting from decreased revenue contributions from the testing services business and increased expenses related to the development of the Company's consumer initiatives.

Net income for Fiscal Year 2015 was RMB23.1 million (US$3.7 million), compared to RMB27.3 million in Fiscal Year 2014. For Fiscal Year 2015, basic and diluted earnings per common share were both RMB0.49 (US$0.08), and basic and diluted earnings per ADS were both RMB0.98 (US$0.16).

Fourth Quarter 2015
For Fourth Quarter 2015, ATA's total net revenues were RMB40.3 million (US$6.5 million), compared to RMB58.7 million in Fourth Quarter 2014, primarily due to decreased revenue contributions from the testing services business. This decrease was a result of certain exams being delivered in Third Quarter 2015, a quarter earlier than in the prior fiscal year; revenues from licensing fees recognized in Fiscal Year 2014 as a result of a simulation contract with Microsoft; and lower revenue contributions from TOEIC, which was a result of the termination of the exclusive distributor contract between ETS and ATA in Fiscal Year 2014.

Gross profit for Fourth Quarter 2015 was RMB19.5 million (US$3.2 million), compared to RMB33.6 million in Fourth Quarter 2014. Gross margin was 48.5% in Fourth Quarter 2015, compared to 57.3% in Fourth Quarter 2014. The decrease was primarily a result of costs for certain private sector client exams being recognized in Third Quarter 2014 while corresponding revenues were recognized in Fourth Quarter 2014.

Loss from operations in Fourth Quarter 2015 was RMB15.8 million (US$2.5 million), compared to RMB1.3 million in Fourth Quarter 2014, primarily due to a lower revenue base resulting from decreased revenue contributions from the testing services business.

Net loss for Fourth Quarter 2015 was RMB15.0 million (US$2.4 million), compared to RMB13.4 million in Fourth Quarter 2014. For Fourth Quarter 2015, basic and diluted losses per common share were both RMB0.33 (US$0.05), compared to RMB0.30 in Fourth Quarter 2014. Basic and diluted losses per ADS were both RMB0.66 (US$0.10) in Fourth Quarter 2015, compared to RMB0.60 in Fourth Quarter 2014.

Non-GAAP Measures
Adjusted net income for Fiscal Year 2015, which excludes share-based compensation expense and foreign currency exchange loss (non-GAAP), totaled RMB31.2 million (US$5.0 million), compared to RMB37.9 million in the prior fiscal year. Basic and diluted earnings per common share excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) for Fiscal Year 2015 were both RMB0.67 (US$0.11).

Basic and diluted earnings per ADS excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) for Fiscal Year 2015 were both RMB1.34 (US$0.22), compared to RMB1.64 in the prior fiscal year.

Please see the note about non-GAAP measures and the reconciliation table at the end of this press release.

Other Data
The number of weighted average ADSs used to calculate both basic and diluted earnings per ADS for Fourth Quarter 2015 was 22.7 million. The number of weighted average ADSs used to calculate both basic and diluted earnings per ADS for Fiscal Year 2015 was 22.8 million. Each ADS represents two common shares.

Guidance for Fiscal Year 2016 and for First Quarter 2016
For First Quarter 2016, ATA expects net revenues of between RMB84.0 million and RMB94.0 million.

For Fiscal Year 2016, ATA expects net revenues of between RMB360.0 million and RMB380.0 million and non-GAAP net income of between RMB28.0 million and RMB38.0 million, which takes into account the operating results of ATA's joint venture and associated companies focused on the consumer market, all of which are at a stage of early business development.

Estimated Financial Results
(RMB in millions)

         
    Estimated for the year ending
March 31, 2016
  Actual for the year ended
March 31, 2015
         
Net Revenues   360.0-380.0   350.2
Non-GAAP Net Income   28.0-38.0   31.2
         
    Estimated for the quarter ending
June 30, 2015
  Actual for the quarter ended
June 30, 2014
         
Net Revenues   84.0-94.0   84.3
         

Mr. Ma concluded, "With the initiation of our various consumer initiatives in Fiscal Year 2015, ATA entered into a number of new markets that we believe are natural extensions of our core competency in assessment technologies. We are confident that ATA is in a strong position to take advantage of the shift toward technology in the greater education space, and we were pleased with the launch and continued progress of these initiatives, all of which are still in their early stages but we expect will be key factors in helping to diversify ATA's revenue mix from government-sponsored exams. The Company is also evaluating ways in which it can expedite the growth of its testing services business. Restructuring the business and listing it on China's New Third Board is one option we are carefully considering, and we will keep investors apprised of our progress here. Throughout these efforts, we have remained committed to operating on the strict cost structure that has allowed the Company to successfully scale its operations and generate positive cash flow to finance its long-term growth, and this will not change in Fiscal Year 2016. After a major transitional year for ATA, we look forward to continuing the Company's growth and expansion in Fiscal Year 2016."

These are ATA's current projections, which are subject to change. You are cautioned that operating results in Fourth Quarter 2015 and in Fiscal Year 2015 are not necessarily indicative of operating results for any future periods.

Conference Call and Webcast Information (With Accompanying Presentation)
ATA will host a conference call at 8 a.m. Eastern Time on Friday, May 29, 2015, during which management will discuss the results of Fourth Quarter 2015 and Fiscal Year 2015. To participate in the conference call, please use the following dial-in numbers about 10 minutes prior to the scheduled conference call time:

         
U.S. & Canada (Toll-Free):   +1 (888) 339-2688    
International (Toll):   +1 (617) 847-3007    
         
    Toll-Free   Local Access
China (Netcom):   (10 800) 713 1756    
China (Telecom):   (10 800) 130 1713   (400) 881 1630
Hong Kong:   (800) 96 3844   3002 1672
         
Participant Passcode:   53428468    
         

A live webcast of the conference call can be accessed at the investor relations section of ATA's website at www.ata.net.cn or by clicking the following link: https://www.webcaster4.com/Webcast/Page/274/8439.

An accompanying slide presentation in PDF format will also be made available 30 minutes prior to the conference call on the same investor relations section of ATA's website. To listen to the webcast, please visit ATA's website a few minutes prior to the start of the call to register, download, and install any necessary audio software.

A replay will be available shortly after the call on the investor relations section of ATA's website and will remain available for 90 days.

About ATA Inc.
ATA is a leading provider of advanced testing technologies in China. The Company offers comprehensive services for the creation and delivery of assessments based on its proprietary testing technologies and test delivery platform. ATA's testing technologies are used for professional licensure and certification tests in various industries, including information technology services, banking, teaching, securities, insurance, and accounting. As of March 31, 2015, ATA's test center network comprised 2,989 authorized test centers located throughout China. The Company believes that it has the largest test center network of any commercial testing service provider in China.

ATA has delivered more than 66.1 million billable tests since ATA started operations in 1999.

For more information, please visit ATA's website at www.ata.net.cn.

Cautionary Note Regarding Forward-looking Statements
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995.

These forward-looking statements can be identified by terms such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "future," "intend," "look forward to," "outlook," "plan," "should," "will," and similar terms and include, among other things, the Company's guidance relating to anticipated financial and operating results for the First Quarter 2016 and Fiscal Year 2016 and statements regarding market demand and trends, the launch and anticipated benefits of the Company's new consumer initiatives, including the partnering with New Oriental to set up and operate Zhi Shang, the strategy for and popularity of the Exam Inventory Navigator, and our consumer initiative in the online continuing education, K-12, language study and study abroad markets, the potential growth of Cambridge English Junior Exam and other businesses, the Company's ability to diversify its revenue mix, control its cost, and scale its operation and the Company's future growth and results of operations.

The factors that could cause the Company's actual financial and operating results to differ from what the Company currently anticipates can include its ability to meet challenges associated with its rapid expansion, its ability to meet the expectations of current and future clients, its ability to deploy new test titles, its ability to win new enterprise contracts, its ability to convert its existing contracts into actual revenues, the economy of China, uncertainties with respect to the China's legal and regulatory environments, and other factors stated in the Company's filings with the U.S. Securities and Exchange Commission ("SEC").

The financial information contained in this release should be read in conjunction with the consolidated financial statements and related notes included in the Company's annual report on Form 20-F for its fiscal year ended March 31, 2014, and other filings that ATA has made with the SEC. The filings are available on the SEC's website at www.sec.gov and at ATA's website at www.ata.net.cn. For additional information on the risk factors that could adversely affect the Company's business, financial condition, results of operations, and prospects, please see the "Risk Factors" section of the Company's Form 20-F for the fiscal year ended March 31, 2014.

The Company has not completed its audit of Fiscal Year 2015 financial statements, and the selected unaudited financial results for the Fourth Quarter 2015 and Fiscal Year 2015 announced today are subject to adjustments. The preliminary results for the Fourth Quarter 2015 and Fiscal Year 2015 remain subject to the finalization of the Company's year-end closing, reporting and audit processes.

The forward-looking statements in this release involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates, and projections about ATA and the markets in which it operates. The Company undertakes no obligation to update forward-looking statements, which speak only as of the date of this release, to reflect subsequent events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, the Company cannot assure you that its expectations and assumptions will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

Currency Convenience Translation
The Company's financial information is stated in Renminbi ("RMB"), the currency of the People's Republic of China. The translation of RMB amounts for Fourth Quarter 2015 and Fiscal Year 2015, into U.S. dollars are included solely for the convenience of readers and have been made at the rate of RMB6.1990 to US$1.00, the noon buying rate as of March 31, 2015, in New York for cable transfers in RMB per U.S. dollar as set forth in the H.10 weekly statistical release of the Federal Reserve Board. Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under U.S. GAAP.

About Non-GAAP Financial Measures
To supplement ATA's consolidated financial information presented in accordance with U.S. generally accepted accounting principles ("GAAP"), ATA uses the following non-GAAP financial measures: net income (loss) excluding share-based compensation expense and foreign currency exchange gain or loss, and basic and diluted earnings (losses) per common share and ADS excluding share-based compensation expense and foreign currency exchange gain or loss.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. ATA believes these non-GAAP financial measures provide meaningful supplemental information about its performance by excluding share-based compensation expense and foreign currency exchange gains or losses, which may not be indicative of its operating performance from a cash perspective.

ATA believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to ATA's historical performance. ATA computes its non-GAAP financial measures using a consistent method from period to period. ATA believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP net income (loss) excluding share-based compensation expense and foreign currency exchange gains or losses and basic and diluted earnings (losses) per common share and per ADS excluding share-based compensation expense and foreign currency exchange gain or loss is that share-based compensation charges and foreign currency exchange gains or losses have been, and are expected to continue to be for the foreseeable future, a significant recurring expense in ATA's business.

Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The table captioned "Unaudited Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures" shown at the end this news release has more details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures used by ATA.

   
   
ATA INC. AND SUBSIDIARIES  
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS  
   
  March 31,     March 31,     March 31,  
  2014     2015     2015  
  RMB     RMB     USD  
ASSETS                
Current assets:                
  Cash 311,947,098     240,295,371     38,763,570  
  Restricted cash 2,700,000     -     -  
  Accounts receivable, net 68,353,075     48,150,046     7,767,389  
  Prepaid expenses and other current assets 15,092,674     24,505,249     3,953,097  
    Total current assets 398,092,847     312,950,666     50,484,056  
                 
Equity method investments -     37,709,848     6,083,215  
Property and equipment, net 55,814,182     62,720,375     10,117,821  
Goodwill 31,011,902     31,011,902     5,002,727  
Intangible assets, net 1,792,935     943,769     152,245  
Other assets 4,524,858     11,887,740     1,917,687  
    Total assets 491,236,724     457,224,300     73,757,751  
                 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
  Accrued expenses and other payables 68,766,143     54,415,425     8,778,097  
  Deferred revenues 8,383,327     21,742,735     3,507,458  
    Total current liabilities 77,149,470     76,158,160     12,285,555  
                   
  Deferred revenues 2,195,382     1,763,732     284,519  
    Total liabilities 79,344,852     77,921,892     12,570,074  
                 
                 
Shareholders' equity:                
  Common shares 3,474,894     3,513,718     566,820  
  Treasury shares (1,029,766 )   (8,201,045 )   (1,322,963 )
  Additional paid-in capital 437,964,776     389,482,800     62,829,941  
  Accumulated other comprehensive loss (27,145,929 )   (27,176,682 )   (4,384,043 )
  Retained earnings (accumulated deficit) (1,372,103 )   21,683,617     3,497,922  
    Total shareholders' equity 411,891,872     379,302,408     61,187,677  
    Total liabilities and shareholders' equity 491,236,724     457,224,300     73,757,751  
                 
                 
                 
ATA INC. AND SUBSIDIARIES  
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS  
   
  Three-month Period Ended  
  March 31,     March 31,     March 31,  
  2014     2015     2015  
  RMB     RMB     USD  
Net revenues:                
  Testing services 51,542,430     35,004,993     5,646,877  
  Test preparation and training solutions 246,371     972,373     156,860  
  Other revenue 6,871,155     4,337,146     699,653  
  Total net revenues 58,659,956     40,314,512     6,503,390  
Cost of revenues 25,061,085     20,780,693     3,352,265  
  Gross profit 33,598,871     19,533,819     3,151,125  
                 
Operating expenses:                
Research and development 8,235,283     7,691,524     1,240,769  
Sales and marketing 12,580,996     8,362,686     1,349,038  
General and administrative 15,128,132     21,337,041     3,442,014  
  Total operating expenses 35,944,411     37,391,251     6,031,821  
                 
Other operating income 1,072,453     2,077,500     335,135  
Loss from operations (1,273,087 )   (15,779,932 )   (2,545,561 )
                 
Other income/(loss):                
Share of losses of equity method investment -     (2,196,750 )   (354,372 )
Interest income 2,167,854     1,358,612     219,167  
Foreign currency exchange losses, net (334,324 )   (38,533 )   (6,216 )
  Total other income/ (loss) 1,833,530     (876,671 )   (141,421 )
Income/(Loss) before income taxes 560,443     (16,656,603 )   (2,686,982 )
                 
Income tax benefit (expense) (13,950,550 )   1,658,122     267,482  
Net loss (13,390,107 )   (14,998,481 )   (2,419,500 )
                 
Other comprehensive income/(loss):                
Foreign currency translation adjustment, net of nil income taxes 128,161     247,795     39,973  
Comprehensive loss (13,261,946 )   (14,750,686 )   (2,379,527 )
                 
Basic losses per common share (0.30 )   (0.33 )   (0.05 )
                 
Diluted losses per common share (0.30 )   (0.33 )   (0.05 )
                 
Basic losses per ADS (0.60 )   (0.66 )   (0.10 )
                 
Diluted losses per ADS (0.60 )   (0.66 )   (0.10 )
                 
                 
                 
ATA INC. AND SUBSIDIARIES  
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME  
   
  Year Ended  
  March 31,     March 31,     March 31,  
  2014     2015     2015  
  RMB     RMB     USD  
Net revenues:                
  Testing services 358,837,352     319,055,019     51,468,788  
  Test preparation and training solutions 5,949,183     5,710,827     921,250  
  Other revenue 19,881,843     25,391,978     4,096,141  
  Total net revenues 384,668,378     350,157,824     56,486,179  
Cost of revenues 188,480,346     172,539,260     27,833,402  
  Gross profit 196,188,032     177,618,564     28,652,777  
                 
Operating expenses:                
Research and development 27,673,298     36,836,338     5,942,303  
Sales and marketing 47,259,273     45,186,175     7,289,268  
General and administrative 67,867,384     65,605,087     10,583,172  
Impairment of intangible assets 12,009,457     310,153     50,033  
  Total operating expenses 154,809,412     147,937,753     23,864,776  
                 
Other operating income 1,072,453     2,077,500     335,135  
Income from operations 42,451,073     31,758,311     5,123,136  
                 
Other income/(loss):                
Share of losses of equity method investment -     (2,196,750 )   (354,372 )
Interest income 4,770,024     4,136,454     667,278  
Foreign currency exchange losses, net (49,200 )   (1,067,149 )   (172,149 )
  Total other income 4,720,824     872,555     140,757  
Income before income taxes 47,171,897     32,630,866     5,263,893  
                 
Income tax expense (19,895,462 )   (9,575,146 )   (1,544,628 )
Net income 27,276,435     23,055,720     3,719,265  
                 
Other comprehensive income/(loss):                
Foreign currency translation adjustment, net                
of nil income taxes (766,783 )   (30,753 )   (4,961 )
Comprehensive income 26,509,652     23,024,967     3,714,304  
                 
Basic earnings per common share 0.59     0.49     0.08  
                 
Diluted earnings per common share 0.59     0.49     0.08  
                 
Basic earnings per ADS 1.18     0.98     0.16  
                 
Diluted earnings per ADS 1.18     0.98     0.16  
                 
                 
                 
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
TO THE MOST COMPARABLE GAAP MEASURES
 
  Three-month Period Ended     Year Ended
  March 31,     March 31,     March 31,   March 31,
  2014     2015     2014   2015
  RMB     RMB     RMB   RMB
                   
GAAP net income (loss) (13,390,107 )   (14,998,481 )   27,276,435   23,055,720
Share-based compensation expenses 3,498,073     4,671,277     10,534,910   7,111,316
Foreign currency exchange loss, net 334,324     38,533     49,200   1,067,149
  Non-GAAP net income (loss) (9,557,710 )   (10,288,671 )   37,860,545   31,234,185
                   
GAAP earnings (losses) per common share                  
    Basic (0.30 )   (0.33 )   0.59   0.49
    Diluted (0.30 )   (0.33 )   0.59   0.49
                   
Non-GAAP earnings (losses) per common share                  
    Basic (0.21 )   (0.23 )   0.82   0.67
    Diluted (0.21 )   (0.23 )   0.82   0.67
                   

Contact Information

  • For more information on our company, please contact the following individuals:

    At the Company
    ATA Inc.
    Benson Tsang
    CFO
    +86 10 6518 1122 x5107
    bensontsang@ata.net.cn

    Investor Relations
    The Equity Group Inc.
    Carolyne Y. Sohn
    Senior Associate
    415-568-2255
    +86 10 6587 6435
    csohn@equityny.com

    Adam Prior
    Senior Vice President
    212-836-9606
    aprior@equityny.com