ATA Creativity Global Reports 2020 Third Quarter Financial Results
Conference Call on Thursday, November 12, 2020, at 8 p.m. ET with Accompanying Investor Presentation
BEIJING, China, Nov. 12, 2020 (GLOBE NEWSWIRE) -- ATA Creativity Global (“ACG” or the “Company”, Nasdaq: AACG), an international educational services company focused on providing quality learning experiences that cultivate and enhance students’ creativity, today announced preliminary unaudited financial results for the quarter and nine months ended September 30, 2020 (“Third Quarter 2020” and “Nine Months 2020”, respectively).
Third Quarter 2020 Highlights
- During Third Quarter 2020, student enrollment was 1,225, of which 666 were enrolled in ACG’s portfolio training programs. Approximately 44,203 credit hours (i.e., the standard unit measuring educational credit for the portfolio training program; each credit hour equates to roughly one hour of time committed) were delivered during Third Quarter 2020.
- Third Quarter 2020 net revenues of RMB42.2 million (US
$6.2 million ), primarily driven by revenues from portfolio training services - Student enrollments and net revenues, particularly those related to the educational travel services business, continued to be impacted by the coronavirus disease (“COVID-19”) during Third Quarter 2020.
- Third Quarter 2020 net income attributable to ACG of RMB19.3 million (US
$2.8 million ), compared to net loss attributable to ACG of RMB25.2 million in the prior-year period - Nine Months 2020 net revenues of RMB101.3 million (US
$14.9 million ) - Nine Months 2020 net loss from continuing operations attributable to ACG of RMB33.3 million (US
$4.9 million ), compared to RMB56.3 million in the prior-year period - RMB111.9 million (US
$16.5 million ) in cash and cash equivalents as of September 30, 2020
Management Commentary
Mr. Kevin Ma, Chairman and CEO of ACG, stated, “During the third quarter of 2020, enrollment levels within our portfolio training program increased by
Outlook/Impact of COVID-19
Mr. Jun Zhang, President of ACG, stated, “We were pleased to see continued strong enrollment in Third Quarter 2020 as traditional in-person delivery of coursework became increasingly available and many students continued their educations online during the period. The fourth quarter tends to be our busiest time of the year as students are working in earnest to complete their portfolios ahead of year-end application deadlines for entry in the fall of 2021. Given the effects of the pandemic, we anticipate fourth quarter enrollments in our Portfolio Training Program will remain steady. While our educational travel business will continue to be impacted through the remainder of the year, the fall and winter tend to be lighter travel seasons, and we plan to continue offering alternatives to our traditional travel programs, mitigating the overall impact on our business. While the pandemic has undoubtedly overturned the economy and countless lives have been devastated by this disease, our students have shown a great deal of resilience, and we are proud that ACG as an institution has risen to the challenge of continuing to provide the educational opportunities our students seek. We believe we will emerge from the pandemic stronger than before and look forward to supporting our students with additional offerings and improved infrastructure well into the future.”
Operating Review
Enrollment Update
ACG student enrollment for Third Quarter 2020 was 1,225, of which 666 were enrolled in its portfolio training programs, which consist of time-based programs and project-based programs.
A total of 44,203 credit hours were delivered for portfolio training programs during Third Quarter 2020, of which 26,117 credit hours were delivered for time-based programs and 18,086 credit hours were delivered for project-based programs. These courses were delivered either in person through ACG’s nationwide training center network or via online platform.
The following is a summary of the credit hours delivered for ACG’s portfolio training programs, for the period beginning July 1, 2020, to September 30, 2020, compared to those for the prior-year period:
July 1 – Sept. 30, 2020 | July 1 – Sept. 30, 2019 | % Change | ||||
No. of Credit Hours | No. of Credit Hours |
ATA Creativity Global
NASDAQ:AACGAACG RankingsAACG Latest NewsAACG Stock Data
27.16M
17.17M
16.07%
0.09%
Professional and Management Development Training
Educational Services
United States of America
Beijing
About AACGata (nasdaq: atai) is the largest professional services provider for testing, assessment and related services in china, as well as the most effective adaptive e-learning solution provider based on advanced assessment technologies. leveraging our state-of-the-art technologies; operated with extensive experiences in test operations and administrations; through a delivery network of over 3000 test centers across the country; ata has been providing professional test and assessment services for government authorities, academic institutions, corporate clients and tens of millions of test candidates since 1999.
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