China Bilingual Announces Financial Results for the Second Quarter of Fiscal 2012

TAIYUAN, China, April 16, 2012 /PRNewswire-Asia-FirstCall/ -- China Bilingual Technology & Education Group Inc. (OTCBB: CBLY) ("China Bilingual" or the "Company"), an education company that owns and operates high-quality, K-12 private boarding schools in China, today announced its financial results for the second quarter ended February 29, 2012.

Second Quarter Fiscal Year 2012 Financial Highlights: (Year-over-Year, Three-Month Results)

• Revenues increased 80.2% year-over-year to $11.0 million, compared to $6.1 million for the three months ended February 28, 2011. The increase was primarily attributable to the acquisition of the Shanxi South School (formerly Shanxi Rising School), which increased the Company's total enrollment 50.9% from approximately 9,200 students to 13,881 students for the current school year, as well as a slight tuition increase. 

• Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") increased 119.0% year-over-year to $5.6 million, compared to $2.5 million for the three months ended February 28, 2011. The additional enrollment allowed the schools to better absorb fixed overhead costs, and the second fiscal quarter had fewer one-time costs compared to the start of the school year in the first fiscal quarter ended November 30, 2011.

• Net income increased 11.4% year-over-year to $2.5 million, compared to $2.2 million for the three months ended February 28, 2011. Interest, depreciation and amortization, primarily associated with the acquisition of the third facility, was $3.1 million for the quarter ended February 29, 2012.

• The schools owned by the Company are exempt from paying corporate income taxes because of its classification in China's primary education sector.

• Net property, equipment, and land use rights were $127.6 million at historical book value as of February 29, 2012.

• Stockholders' equity was $46.3 million as of February 29, 2012.

Six Months Fiscal Year 2012 Financial Highlights: (Year-over-Year, Six-Month Results)

• Revenues increased 77.1% year-over-year to $21.4 million, compared to $9.3 million for the six months ended February 28, 2011. The increase was primarily attributable to the acquisition of the Shanxi South School.

• EBITDA increased 67.6% year-over-year to $9.3 million, compared to $5.5 million for the six months ended February 28, 2011. 

• Net income decreased 37.1% year-over-year to $3.1 million, compared to $4.9 million for the six months ended February 28, 2011. Interest, depreciation and amortization, primarily associated with the acquisition of the third facility, was $6.3 million for the six months ended February 29, 2012.

"Increasing enrollment at our schools continues to improve margins as we are able to better absorb our fixed operating costs," stated Dr. Ren Zhiqing, Chairman and CEO of China Bilingual. "With our schools currently at approximately 70% capacity, our focus remains on ramping up our total enrollment to 20,000 students over time without compromising our academic standards. Driven by China's growing middle class, the demand for private education is accelerating, and our reputation for academic excellence strongly positions us for long-term revenue and earnings growth."

Conference Call and Webcast

Management will host a conference call to discuss these financial results Thursday, April 19, 2012 at 9:00 a.m. Eastern time (6:00 a.m. Pacific).

To participate in the call, please dial (877) 941-2068, or (480) 629-9712 for international calls, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which can be found at http://ViaVid.net.

A replay of the call will be available for two weeks from 12:00 p.m. Eastern time on April 19, 2012, until 11:59 p.m. Eastern time on May 3, 2012. The number for the replay is (877) 870-5176, or (858) 384-5517 for international calls; the pin number for the replay is 4533045. In addition, a recording of the call will be available at http://www.RedChip.com for one year.

About China Bilingual Technology & Education Group Inc.

China Bilingual Technology and Education Group Inc. is an education company that owns and operates high-quality, K-12 private boarding schools in China. Founded in 1998, the Company currently operates three schools encompassing the kindergarten, elementary, middle and high school levels with approximately 13,881 students and 1,876 faculty and staff.

The Company's schools are located in Shanxi and Sichuan Provinces and provide students with an innovative and high-quality education with a focus on fluency and cultural skills in both Chinese and English. The schools regularly rank among the top schools in their respective regions for college entrance rates and national college entrance exam scores. The Company's schools have earned excellent teaching reputations and are recognized for the success of their students and strong faculty.

As China experiences rapid industrialization and economic growth, the government is focused on education as a means to increase worker productivity and raise the standard of living. Parents in China's new middle class are sending their children to receive private school education to give them an advantage in China's increasingly competitive workforce. The Company's sector in education is not subject to corporate income tax, and the Company anticipates its growth will come from both organic growth through increased enrollment and expansion of its business model and teaching methods into new schools to be acquired by the Company.

Forward-Looking Statements

Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. For additional information, readers should carefully review reports or documents the Company files periodically with the Securities and Exchange Commission.

Contact: 

At the Company:
Michael Toups, Chief Financial Officer
U.S. Office +1 727-641-1357
Email: [email protected]
Web: http://www.ChinaBilingualEdu.com

Investor Relations:
Mike Bowdoin
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 110
Email: [email protected]
Web: http://www.RedChip.com

Scott Powell, Sr. VP
MZ Group
Tel: +1-212-301-7130
Email: [email protected]
Web: http://www.mz-ir.com

SOURCE China Bilingual Technology & Education Group Inc.

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