EX-99 3 exh_992.htm EXHIBIT 99.2 Unassociated Document
ChinaCast Education Corporation
Q3 2008
Quarterly Earnings
Summary
NASDAQ: CAST
www.chinacasteducation.com
 
 
 
2
Income Statement Highlights: 2008 - 3rd Quarter
Q3- 2007
(RMB m)
Q3 2008
(RMB m)
Q3 2008
(US$ m)
YoY
Change
Revenue
46.0
72.8
$10.7
+58%
 Service
38.0
70.9
$10.4
+87%
 Equipment
8.0
1.9
$0.3
-76%
Gross Profit
25.9
42.0
$6.2
+62%
 Gross Margin
56%
58%
-
+2 pts
Income from Operations
15.8
25.1
$3.7
+59%
 Operating Margin
35%
34.2%
-
unchg
Net Income
16.8
19.7
$2.9
+17%
 Net Margin
36.6%
27%
-
-9.6 pts
Income Per Share (Basic) *
0.62
0.63
$0.9
-
Income Per Share (Diluted) *
0.61
0.63
$0.9
-
* Weighted Average Shares Used in Computation:
1. Basic: 2007 - 27,266,564, 2008 - 31,373,482
2. Diluted: 2007 - 27,783,672; 2008 - 31,373,482
 
 
 
3
Income Statement Highlights: 2008 - 1st 9 Months
1st 9 mos 2007
(RMB m)
1st 9 mos
2008
(RMB m)
1st 9 Mos
2008
(US$ m)
YoY
Change
Revenue
128.2
206.2
$30.3
+60%
 Service
106.0
181.9
$26.7
+72%
 Equipment
22.1
24.3
$3.6
10%
Gross Profit
72.5
110.7
$16.3
+53%
 Gross Margin
57%
54%
-
-3 pts
Income from Operations
47.3
61.2
$9.0
+29%
 Operating Margin
36%
30%
-
-6 pts
Net Income
43.9
53.7
$7.9
+17%
 Net Margin
34%
26%
-
-8 pts
Income Per Share (Basic) *
1.67
1.87
$0.28
-
Income Per Share (Diluted) *
1.60
1.85
$0.27
-
* Weighted Average Shares Used in Computation:
1. Basic: 2007 - 26,315,541, 2008 - 28,695,241
2. Diluted: 2007 - 27,491,941; 2008 - 29,026,908
 
 
 
4
Costs & Expenses
Costs & Expenses
GAAP (000s)
Q3 2008
(US$ M)
Q3 2008
(RMB M)
Q3 2007
(RMB M)
YoY
Change
Cost of Revenue
$4.5
30.8
20.1
+53%
 Service
$4.2
28.9
12.2
+136%
 Equipment
$0.3
1.9
8.0
-320%
Gross Profit
$6.2
42.0
25.9
+62%
 Gross Margin
58%
58%
56%
+2 pts
SG&A GAAP (000s)
Q3 2008
(US$ M)
Q3 2008
(RMB M)
Q3 2007
(RMB M)
YoY
Change
Selling & Marketing Expenses
$0.3
2.0
1.7
+18%
General & Administrative Expenses
$2.4
16.6
12.4
+33%
SG&A Non-GAAP (000s)
(Excludes share-based compensation)
Q3 2008
(US$ M)
Q3 2008
(RMB M)
Q3 2007
(RMB M)
YoY
Change
Selling & Marketing Expenses
0.2
1.9
1.5
+21%
General & Administrative Expenses
2.1
14.5
12.0
+20%
 
 
 
5
Our Balance Sheet - Increases in Assets and Equity
Notes: (1) Calculated at RMB6.8 = 1 US$
  (2) Including Cash and cash equivalents and Term deposits
(In '000 RMB )
Sept 30, 2008
US$ (1)
Sept 30, 2008
RMB
Dec 31, 2007
RMB
 Cash and cash equivalents (2)
73,071
496,884
 735,378
 Accounts receivable
 8,712
59,242
35,316
 Total Current Assets
 83,850
 570,191
 783,084
 Property, plant and equipment, net
 33,458
 227,514
 11,107
Total Assets
209,007
1,421,251
 950,714
 Accounts payable
 2,882
 19,595
 13,027
 Total Current Liabilities
51,063
347,233
97,674
 Total Liabilities
 59,941
 407,606
 125,566
 Total Shareholders' Equity
 142,783
 970,922
 804,636
Total Liabilities and Shareholders’ Equity
 209,007
 1,421,251
 950,714
 
 
 
6
Going Forward - Things to Note
• Changes in the total outstanding shares:
 - Warrant exercise + 4,050,510 shares
 - Shelf registration + 4,250,000 shares
 - EPS calculations starting in the 4th quarter would then be:
 EPS =  Net Income
   35,648,251 shares   
 
 
 
7
2008 Revenue and Earnings Guidance
• As stated previously, ChinaCast estimates total revenue
    for 2008 to be in the range of RMB234 million to RMB256
    million (US$34.4 million to US$37.6 million*),
    representing a growth rate of 25% to 36% over 2007**.
• ChinaCast estimates net income (excluding share-based
   compensation) for 2008 to be in the range of RMB80
   million to RMB95 million (US$11.8 million to US$14.0 million).
• This forecast reflects ChinaCast's current and preliminary view,
    actual results may differ materially.
* Exchange Rate US$1=RMB 6.8
** Growth rates calculated using RMB figures