Xueda Education Group (NYSE: XUE) (“Xueda” or the “Company”), the leading national provider of tutoring services for primary and secondary school students in China with a focus on offering personalized tutoring services, today announced its unaudited financial results for the third quarter of 2011.
Third Quarter 2011 Highlights
- Total net revenue for the third quarter 2011 increased by 32.2% year-over-year to $51.5 million from $39.0 million for the third quarter of 2010.
- Gross profit for the third quarter 2011 increased by 10.3% year-over-year to $12.4 million from $11.3 million for the third quarter of 2010.
- Loss from operations for the third quarter of 2011 increased to $6.6 million from $2.4 million for the third quarter of 2010.
- Net loss for the third quarter of 2011 increased to $6.3 million from $2.4 million for the third quarter of 2010.
- Total number of learning centers increased to 273, covering 62 cities, as of the end of the third quarter of 2011, up from 256 learning centers covering 61 cities as of the end of the previous quarter. As of the end of the third quarter of 2010, total number of learning centers was 178 covering 51 cities.
- Course hours delivered in the third quarter of 2011 increased by 14.9% year-over-year to 2.1 million hours from 1.8 million hours for the third quarter of 2010.
- Total number of students served in the third quarter of 2011 increased by 28.7% year-over-year to approximately 51,500 students from approximately 40,000 students for the third quarter of 2010.
- Average hourly course fee in the third quarter of 2011 increased by 14.6% year-over-year to $25.98 from $22.68 in the third quarter of 2010.
Commenting on the results, Mr. Xin Jin, co-founder and Chief Executive Officer of Xueda, stated, “As we previously announced, changes to the compensation structure for our education consultants caused a slow-down in our revenue growth rate in the third quarter. We have addressed this issue through the hiring of more education consultants and enhancing our training programs for all of our educational consultants. While sales productivity is still in the process of recovery, we believe that revenue growth will get back on track over the next several quarters as these efforts take hold. Xueda continues to be the premier provider of personalized education in China with a very large market opportunity and the means to continue growing rapidly. We will execute our planned expansion by continuing to grow our learning center network, present new service offerings to students and developing our online presence. We think the future is very bright for our company.”