BEIJING, Nov. 9, 2009 (GLOBE NEWSWIRE) -- ChinaCast Education Corporation (the "Company" or "ChinaCast") (Nasdaq:CAST), a leading for-profit, post-secondary and E-learning services provider in China, today announced its financial results for the third quarter and nine months ended September 30, 2009.
* Third Quarter 2009 Highlights(1): - Total revenues increased 14% to $12.2 million - Operating income increased 52% to $5.6 million - Net income increased 39% to $4.0 million; Adjusted net income (non-GAAP) increased 39% to $4.5 million - Diluted EPS of $0.11; Adjusted Diluted EPS (non-GAAP) of $0.12 - EBITDA (non-GAAP) increased 34% to $7.1 million - Completed the acquisition of the remaining 20% interest in the Foreign Trade and Business College of Chongqing Normal University for $19.9 million - Completed the acquisition of Lijiang College of Guangxi Normal University for $53.7 million subsequent to Third Quarter 2009 * Nine Months 2009 Highlights: - Total revenues increased 14% to $34.7 million - Operating income increased 65% to $14.8 million - Net income increased 36% to $10.7 million; Adjusted net income (non-GAAP) increased 27% to $12.6 million - Diluted EPS of $0.30; Adjusted Diluted EPS (non-GAAP) of $0.35 - EBITDA (non-GAAP) increased 57% to $19.4 million
Ron Chan, Chairman and CEO said, "We are extremely pleased with our third quarter results as they reflect what we believe are the attributes of our business model and execution of our strategy to deliver sustainable growth and margin expansion while completing accretive acquisitions to enhance our education service offerings and geographic coverage. Our results were driven by strong demand fundamentals reflected particularly in enrollment growth in our on-campus and e-learning accredited degree programs, supported by solid execution across the business.
"The PRC post-secondary education sector continued its strong growth trajectory despite the difficult macro environment. For the current academic year, which started in September 2009, we were able to increase our university enrollments from 11,000 to 12,200 on-campus students and 131,000 to 141,000 e-learning students from the start of the previous academic year. We also acquired the remaining 20% interest in The Foreign Trade and Business College and closed the acquisition of our second university, Lijiang College of Guangxi Normal University. Lijiang College, which is located in Guilin and well-known for its hospitality and tourism management programs, adds an additional 9,000 students to our on-campus enrollments, further expands our course offerings and geographic reach and will start contributing to our financials in the fourth quarter of 2009. Our recently announced joint venture with the China University of Petroleum provides a platform for distance learning throughout the PRC which we believe will drive incremental growth. Additionally, we are currently evaluating other growth opportunities which complement our business."
Antonio Sena, Chief Financial Officer added, "We believe that our focus on prudent expense controls and working capital management in the third quarter enabled us to deliver a significant increase in operating income, net income and cash flow resulting in a strong liquidity position, which provides us the flexibility to pursue additional growth opportunities.
"We expect to achieve the high end of our full year guidance of $49 million to $51 million in revenues and $14 million to $16 million in adjusted net income (non-GAAP) and we believe that our strong balance sheet positions us well for additional growth acquisitions."
Third Quarter 2009 Financial Results
Total Revenues -- Total revenues for the quarter increased 14% to $12.2 million from $10.7 million in the third quarter of 2008. ChinaCast is organized into two business segments: the E-Learning Group ("ELG"), encompassing the Company's E-learning education service businesses, and the Traditional University Group ("TUG"), offering accredited bachelor and diploma degree programs to students from the Foreign Trade and Business College ("FTBC") campus in Chongqing. ELG revenue for the quarter increased 11% to $7.6 million from $6.8 million in the third quarter of 2008. TUG revenue for the quarter increased 19% to $4.6 million from $3.9 million in the third quarter of 2008. The Company also reports revenue by service and equipment revenue. Service revenue for the quarter increased 14% to $11.9 million from $10.4 million in the third quarter of 2008 while equipment revenue was unchanged at $0.3 million.
Cost of Sales -- Cost of sales for the quarter increased 1% to $4.6 million from $4.5 million in the third quarter of 2008.
Gross Profit and Gross Margin -- Gross profit for the quarter increased 24% to $7.7 million from $6.2 million in the third quarter of 2008. Gross profit margin for the quarter was 63% compared to 58% in the third quarter of 2008.
Share Based Compensation -- Share based compensation for the quarter increased 41% to $0.5 million from $0.3 million in the third quarter of 2008.
Operating Expenses -- Operating expenses for the quarter decreased 18% to $2.0 million from $2.5 million in the third quarter of 2008 primarily due to a decrease in administrative expenses.
Operating Income, Operating Income Margin -- Operating income for the quarter increased 52% to $5.6 million from $3.7 million in the third quarter of 2008. Operating income margin for the quarter was 46% compared to 35% in the third quarter of 2008.
Net Income, Net Income Margin -- Net income attributable to the Company for the quarter increased 39% to $4.0 million from $2.9 million in the third quarter of 2008. Net income margin for the quarter was 33% compared to 27% in the third quarter of 2008.
Adjusted Net Income, Adjusted Net Income Margin -- Adjusted net income excluding share based compensation expenses (non-GAAP) for the quarter increased 39% to $4.5 million from $3.2 million in the third quarter of 2008. Adjusted net income margin excluding share based compensation expenses (non-GAAP) for the quarter was 37% compared to 30% in the third quarter of 2008.
EBITDA and EBITDA Margin -- EBITDA (non-GAAP) for the quarter increased 34% to $7.1 million from $5.3 million in the third quarter of 2008. EBITDA margin (non-GAAP) for the quarter was 58% compared to 50% in the third quarter of 2008.
Diluted EPS, Adjusted Diluted EPS -- Diluted earnings per share for the quarter were $0.11 compared to $0.09 in the third quarter of 2008 primarily due to an increase in net income partially offset by a year-over-year increase in shares used in the computation. Adjusted diluted earnings per share excluding share based compensation expenses (non-GAAP) for the quarter were $0.12 compared to $0.10 in the third quarter of 2008. The weighted average number of shares used in the computation was 36,379,884 for the third quarter of 2009 and 31,373,482 for the third quarter of 2008.
Nine Months 2009 Financial Results
Total Revenues -- Total revenues for the first nine months increased 14% to $34.7 million from $30.3 million in the first nine months of 2008. ELG revenue for the first nine months decreased 5% to $21.5 million from $22.7 million in the first nine months of 2008 primarily due to a decrease in equipment sales. TUG revenue for the first nine months increased 72% to $13.2 million from $7.7 million in the first nine months of 2008, primarily due to the addition of FTBC in the TUG business in the second quarter of 2008. Service revenue for the first nine months increased 26% to $33.8 million from $26.7 million in the first nine months of 2008 while equipment revenue decreased 75% to $0.9 million from $3.6 million in the first nine months of 2008.
Cost of Sales -- Cost of sales for the first nine months decreased 4% to $13.4 million from $14.0 million in the first nine months of 2008 primarily due to a decrease in equipment sales.
Gross Profit and Gross Margin -- Gross profit for the first nine months increased 31% to $21.3 million from $16.3 million in the first nine months of 2008. Gross profit margin for the first nine months was 61% compared to 54% in the first nine months of 2008.
Share Based Compensation -- Share based compensation for the first nine months decreased 5% to $1.9 million from $2.0 million in the first nine months of 2008.
Operating Expenses -- Operating expenses for the first nine months decreased 11% year-over-year to $6.5 million from $7.3 million in the first nine months of 2008 primarily due to a decrease in selling and marketing and general and administrative expenses.
Operating Income, Operating Income Margin -- Operating income for the first nine months increased 65% to $14.8 million from $9.0 million in the first nine months of 2008. Operating income margin for the first nine months was 43% compared to 30% in the first nine months of 2008.
Net Income, Net Income Margin -- Net income attributable to the Company for the first nine months increased 36% to $10.7 million from $7.9 million in the first nine months of 2008. Net income margin for the first nine months was 31% compared to 26% in the first nine months of 2008.
Adjusted Net Income, Adjusted Net Income Margin -- Adjusted net income excluding share based compensation expenses (non-GAAP) for the first nine months increased 27% to $12.6 million from $9.9 million in the first nine months of 2008. Adjusted net income margin excluding share based compensation expenses (non-GAAP) for the first nine months was 36% compared to 33% in the first nine months of 2008.
EBITDA and EBITDA Margin -- EBITDA (non-GAAP) for the first nine months increased 57% to $19.4 million from $12.3 million in the first nine months of 2008. EBITDA margin (non-GAAP) for the first nine months was 56% compared to 41% in the first nine months of 2008.
Diluted EPS, Adjusted Diluted EPS -- Diluted earnings per share for the first nine months were $0.30 compared to $0.28 in the first nine months of 2008 primarily due to an increase in net income partially offset by a year-over-year increase in shares used in the computation. Adjusted diluted earnings per share excluding share based compensation expenses (non-GAAP) for the first nine months were $0.35 compared to $0.34 in the first nine months of 2008. The weighted average number of shares used in the computation was 35,945,264 for the first nine months of 2009 and 29,026,908 for the first nine months of 2008.
Cash and Bank Balances together with Term Deposits Cash and bank balances together with term deposits totaled $99.8 million as of September 30, 2009, compared to $86.6 million as of December 31, 2008.
Financial Outlook for 2009
For the full year ending December 31, 2009, the Company estimates that total revenue will be between $49 million to $51 million and adjusted net income (non-GAAP) between $14 million to $16 million, which does not include shared-based compensation and impairment charges. Management believes 2009 results will be at the upper end of these ranges. This is the Company's current and preliminary view, which is subject to change.
Conference Call Information
ChinaCast's management team will host an earnings conference call at 8:00 am US Eastern Time, Tuesday, November 10, 2009. The dial-in details for the earnings conference call are as follows:
Earnings Call Telephone Numbers: US/Canada Toll Free: +1-877-852-6579 International: +1-719-325-4795
A replay of the earnings conference call will be available at the following numbers:
Replay Telephone Numbers: US/Canada Toll Free: +1-888-203-1112 International: +1-719-457-0820 Replay Pass Code: 5570429 Replay will be available at 11:00 am ET on Tuesday, November 10, 2009, through midnight ET on Tuesday, November 24, 2009.
Additionally, a live and archived version of the earnings call will be available at www.chinacasteducation.com. Please access the website approximately 10 minutes prior to the start time in order to download and install any necessary software.
About ChinaCast Education Corporation
Established in 1999, ChinaCast Education Corporation is a leading for-profit, post-secondary education and e-learning services provider in China. The Company provides post-secondary degree and diploma programs through its two universities in China: The Foreign Trade and Business College of Chongqing Normal University and the Lijiang College of Guangxi Normal University. These universities offer fully accredited, career-oriented bachelor's degree and diploma programs in business, economics, law, IT/computer engineering, hospitality and tourism management, advertising, language studies, art and music. The Company provides its e-learning services to post-secondary institutions, K-12 schools, government agencies and corporate enterprises via its nationwide satellite/fiber broadband network. These services include interactive distance learning applications, multimedia education content delivery, English language training and vocational training courses. The company is listed on the NASDAQ with the ticker symbol CAST.
Safe Harbor Statement
This press release may contain statements that are forward-looking, as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements express our current expectations or forecasts of possible future results or events, including projections of future performance, statements of management's plans and objectives, future contracts, and forecasts of trends and other matters. These projections, expectations and trends are dependent on certain risks and uncertainties including such factors, among others, as growth in demand for education services, smooth and timely implementation of new training centers and other risk factors listed in the company's Annual Report on Form 10K for the fiscal year ended December 31, 2008. Forward-looking statements speak only as of the date of this filing, and we undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur. You can identify these statements by the fact that they do not relate strictly to historic or current facts and often use words such as "anticipate," "estimate," "expect," "believe," "will likely result," "outlook," "project" and other words and expressions of similar meaning. No assurance can be given that the results in any forward-looking statements will be achieved and actual results could be affected by one or more factors, which could cause them to differ materially. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which statements are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: adjusted net income, adjusted net-income margin, adjusted EPS (basic and diluted), EBITDA and EBITDA margin. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures" included at the end of this release.
We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenses and expenditures that may not be indicative of our "recurring core business operating results." These non-GAAP financial measures exclude from our operating performance not only non-cash charges, such as stock-based compensation, but also discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
The accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.
(1) The US dollar figures presented in this release are derived from the corresponding RMB figures from the Company's Form 10-Q for the periods ended September 30, 2009 and September 30, 2008, and are based on the historical exchange rate of US$1.0 = 6.8 RMB at September 30, 2009, and US$1.0 = 6.8 RMB at September 30, 2008, respectively.
CHINACAST EDUCATION CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share-related data) As of September 30, As of --------------------- Dec. 31, 2009 2009 2008 ------- ------- ------- US$ RMB RMB (Note 1) (Note 1) Assets Current assets: Cash and cash equivalents 58,575 398,312 220,131 Term deposits 41,176 280,000 369,000 Accounts receivable 8,187 55,670 32,581 Inventories 251 1,705 1,419 Prepaid expenses and other current assets 951 6,468 8,987 Amounts due from related parties 307 2,088 2,488 Total current assets 109,447 744,243 634,606 Non-current deposits 561 3,818 686 Property and equipment, net 38,521 261,940 283,982 Land use rights, net 17,619 119,810 121,783 Acquired intangible assets, net 2,867 19,497 31,330 Deposits for investments 15,147 103,000 -- Long-term investments 567 3,854 5,224 Non-current advances to related party 14,354 97,606 110,217 Goodwill 45,784 311,332 311,331 Total assets 244,867 1,665,100 1,499,159 Liabilities and shareholders' equity Current liabilities: Accounts payable 2,655 18,054 11,467 Accrued expenses and other current liabilities 13,346 90,751 132,807 Deferred revenues 15,808 107,492 84,372 Amount due to related party 77 528 1,127 Income taxes payable 9,413 64,009 50,594 Current portion of long-term bank borrowings 13,882 94,400 20,000 Current portion of capital lease obligation 190 1,289 1,191 Other borrowings 85 580 1,097 Total current liabilities 55,456 377,103 302,655 Non-current liabilities: Long-term bank borrowings 7,941 54,000 58,400 Capital lease obligation, net of current portion 193 1,313 1,323 Deferred tax liabilities 2,826 19,214 21,030 Unrecognized tax benefits 7,412 50,403 44,612 Total non-current liabilities 18,372 124,930 125,365 ------- ------- ------- Total liabilities 73,828 502,033 428,020 Commitments and contingencies (Note 13) Shareholders' equity: Ordinary shares (US$0.0001 par value; 100,000,000 shares authorized; 38,351,198 and 35,648,251 shares issued and outstanding in 2009 and 2008, respectively) 4 29 27 Additional paid-in capital 145,580 989,945 948,352 Statutory reserve 4,135 28,117 28,117 Accumulated other comprehensive loss (906) (6,159) (5,462) Retained earnings 18,877 128,361 55,526 Total ChinaCast Education Corporation shareholders' equity 167,690 1,140,293 1,026,560 Noncontrolling interest 3,349 22,774 44,579 Total shareholders' equity 171,039 1,163,067 1,071,139 Total liabilities and shareholders' equity 244,867 1,665,100 1,499,159
CHINACAST EDUCATION CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share-related data) For the three months ended Sept. 30, ------------------------------------ 2009 2009 2008 ---------- ---------- ---------- US$ RMB RMB (Note 1) (Note 1) Revenues: Service 11,917 81,040 70,856 Equipment 279 1,896 1,923 12,196 82,936 72,779 Cost of revenues: Service (4,277) (29,077) (28,887) Equipment (275) (1,875) (1,898) (4,552) (30,952) (30,785) Gross profit 7,644 51,984 41,994 Operating (expenses) income: Selling and marketing expenses (including share-based compensation of RMB267 and RMB114 for the three months ended September 30 for 2009 and 2008, respectively, share-based compensation of RMB1,373 and RMB1,506 for the nine months ended September 30 for 2009 and 2008, respectively) (135) (919) (2,001) General and administrative expenses (including share-based compensation of RMB2,868 and RMB2,115 for the three months ended September 30 for 2009 and 2008, respectively, share-based compensation of RMB11,474 and RMB12,079 for the nine months ended September 30 for 2009 and 2008, respectively) (1,958) (13,313) (16,577) Foreign exchange gain (loss) (8) (51) (392) Management service fee 76 510 1,864 Other operating income (loss) (18) (120) 232 Total operating expenses, net (2,043) (13,893) (16,874) Income from operations 5,601 38,091 25,120 Interest income 314 2,134 4,191 Interest expense (356) (2,421) (251) Income before provision for income taxes and loss in equity investments 5,559 37,804 29,060 Provision for income taxes (1,120) (7,619) (6,733) Income before loss in equity investments 4,439 30,185 22,327 (Loss) gain in equity investments (117) (793) 182 Net income 4,322 29,392 22,509 Less: Net income attributable to noncontrolling interest (299) (2,036) (2,820) Net income attributable to ChinaCast Education Corporation 4,023 27,356 19,689 Earnings per share Net income attributable to ChinaCast Education Corporation per share: Basic 0.11 0.76 0.63 Diluted 0.11 0.75 0.63 Weighted average shares used in computation: Basic 36,133,233 36,133,233 31,373,482 Diluted 36,379,884 36,379,884 31,373,482 For the nine months ended Sept. 30, ------------------------------------ 2009 2009 2008 ---------- ---------- ---------- US$ RMB RMB (Note 1) (Note 1) Revenues: Service 33,806 229,886 181,869 Equipment 892 6,065 24,327 34,698 235,951 206,196 Cost of revenues: Service (12,528) (85,188) (71,369) Equipment (882) (6,001) (24,093) (13,410) (91,189) (95,462) Gross profit 21,288 144,762 110,734 Operating (expenses) income: Selling and marketing expenses (including share-based compensation of RMB267 and RMB114 for the three months ended September 30 for 2009 and 2008, respectively, share-based compensation of RMB1,373 and RMB1,506 for the nine months ended September 30 for 2009 and 2008, respectively) (535) (3,640) (6,370) General and administrative expenses (including share-based compensation of RMB2,868 and RMB2,115 for the three months ended September 30 for 2009 and 2008, respectively, share-based compensation of RMB11,474 and RMB12,079 for the nine months ended September 30 for 2009 and 2008, respectively) (6,541) (44,472) (46,976) Foreign exchange gain (loss) 10 65 (1,043) Management service fee 560 3,806 4,655 Other operating income (loss) 57 387 232 Total operating expenses, net (6,449) (43,854) (49,502) Income from operations 14,839 100,908 61,232 Interest income 1,018 6,923 15,764 Interest expense (822) (5,591) (437) Income before provision for income taxes and loss in equity investments 15,035 102,240 76,559 Provision for income taxes (3,101) (21,090) (16,601) Income before loss in equity investments 11,934 81,150 59,958 (Loss) gain in equity investments (202) (1,370) (634) Net income 11,732 79,780 59,324 Less: Net income attributable to noncontrolling interest (1,021) (6,945) (5,661) Net income attributable to ChinaCast Education Corporation 10,711 72,835 53,663 Earnings per share Net income attributable to ChinaCast Education Corporation per share: Basic 0.30 2.03 1.87 Diluted 0.30 2.03 1.85 Weighted average shares used in computation: Basic 35,814,325 35,814,325 28,695,241 Diluted 35,945,264 35,945,264 29,026,908
CHINACAST EDUCATION CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) For the nine months ended September 30, ---------------------------------- 2009 2009 2008 ---------- ---------- ---------- US$ RMB RMB (Note 1) (Note 1) Cash flows from operating activities: Net income 11,732 79,780 59,324 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,717 32,074 23,083 Share-based compensation 1,889 12,847 13,585 Loss (gain) on disposal of property and equipment 76 519 (232) Loss in equity investments 201 1,370 634 Changes in assets and liabilities: Accounts receivable (3,394) (23,080) (24,822) Inventories (84) (570) (42) Prepaid expenses and other current assets 444 3019 (2,302) Non-current deposits (20) (133) 1,640 Amounts due from related parties 846 5,751 960 Accounts payable 969 6,587 (3,022) Accrued expenses and other current liabilities (2,037) (13,856) 4,698 Deferred revenues 3,400 23,120 60,415 Amount due to related party (88) (599) -- Income taxes payable 1,973 13,415 13,728 Deferred taxes liabilities (267) (1,816) (1,611) Unrecognized tax benefits 851 5,791 1,529 Net cash provided by operating activities 21,208 144,219 147,565 Cash flows from investing activities: Advance to related party (2,941) (20,000) (149) Repayment from advance to related party 4,051 27,544 10,991 Purchase of property and equipment (3,846) (26,153) (14,235) Purchase of subsidiaries, net of cash acquired -- -- (465,507) Term deposits 13,088 89,000 187,768 Disposal of property and equipment -- -- 256 Deposits for investments (15,147) (103,000) (19,000) Net cash used in investing activities (4,795) (32,609) (299,876) Cash flows from financing activities: Other borrowings raised 1,522 10,350 5,298 Other borrowing raised from related party 74 500 -- Repayment of other borrowings (1,672) (11,367) (7,600) Bank borrowings raised 18,882 128,400 -- Repayment of bank borrowings (8,588) (58,400) -- Guarantee deposit paid (441) (3,000) -- Exercise of warrants -- -- 16,778 Repayment of capital lease obligation 13 88 (184) Collection of subscription receivable -- -- 87,670 ---------- ---------- ---------- Net cash provided by financing activities 9,790 66,571 101,962 ---------- ---------- ---------- Effect of foreign exchange rate changes -- -- (377) Net increase (decrease) in cash and cash equivalents 26,203 178,181 (50,726) Cash and cash equivalents at beginning of the period 32,372 220,131 138,610 ---------- ---------- ---------- Cash and cash equivalents at end of the period 58,575 398,312 87,884 ========== ========== ==========
Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (in thousands, 3 months 3 months YoY except share related data) ended ended % Change 30/09/2009 30/09/2008 +/(-) US$ US$ (Note) Net Income attributable to ChinaCast Education Corporation 4,023 2,895 39% Depreciation and Amortization 1,600 1,579 1% Interest Income (314) (616) -49% Interest Expense 356 37 862% Provision for Income Taxes 1,120 990 13% Non-controlling Interest 299 415 -28% EBITDA 7,084 5,300 34% EBITDA Margin 58% 50% -- Net Income attributable to ChinaCast Education Corporation 4,023 2,895 39% Shared Based Compensation 461 328 41% Adjusted Net Income 4,484 3,223 39% Net Income Margin 33% 27% -- Adjusted Net Income Margin 37% 30% -- Fully Diluted Shares 36,379,884 31,373,482 -- EPS (Diluted) 0.11 0.09 -- Adjusted EPS (Diluted) 0.12 0.10 --
Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP 9 months 9 months YoY measures (in thousands, except ended ended % Change share-related data) 30/09/2009 30/09/2008 +/(-) US$ US$ (Note) Net Income attributable to ChinaCast Education Corporation 10,711 7,892 36% Depreciation and Amortization 4,717 3,395 39% Interest Income (1,018) (2,318) -56% Interest Expense 822 64 1184% Provision for Income Taxes 3,101 2,441 27% Non-controlling Interest 1,021 832 23% EBITDA 19,354 12,306 57% EBITDA Margin 56% 41% -- Net Income attributable to ChinaCast Education Corporation 10,711 7,892 36% Shared Based Compensation 1,889 1,998 -5% Adjusted Net Income 12,600 9,890 27% Net Income Margin 31% 26% -- Adjusted Net Income Margin 36% 33% -- Fully Diluted Shares 35,945,264 29,026,908 -- EPS (Diluted) 0.30 0.27 -- Adjusted EPS (Diluted) 0.35 0.34 -- (Note: Certain amounts have been restated following the adoption of Statement of Financial Accounting Standards No. 160 which was effective in 2009.)