Goldman Sachs reports Better-than-expected second-quarter results

Beijing Time October 22 Evening News, Goldman Sachs released its investment report today, the second quarter good Future (NYSE:XRS) in Beijing and Shanghai outside the performance of the city, small-class revenue accounted for the company's small class total revenue of 35%. In the second quarter, there will be a net increase of 9 teaching centers, which will bring the total number of teaching centers to 364. The new teaching center is expected to achieve a break-even margin of 6 months to 9 months.

The following is a summary of the contents of the report:

The results of the second quarter of the next 2014 fiscal year exceeded the average expectations of analysts surveyed by US and Bloomberg. Net revenue of 92 million U.S. dollars, an increase of 35%, the chain growth of 50%, compared to US and the Bloomberg survey analyst's average forecast is 2% higher. Based on non-US general accounting standards, diluted earnings per share of 0.31 U.S. dollars, year-on-year growth of 36%, the chain growth of 142%, compared to our forecast of 12% higher than the average estimate of analysts surveyed by Bloomberg 9%. A good future is expected to have a third-quarter revenue of $69.5 million to $71 million, with median growth of 44% per cent over a year earlier, 13% higher than our forecast, and 14% per cent higher than the average estimate of analysts surveyed by Bloomberg.

Analysis：

1. In the second quarter, cities outside Beijing and Shanghai performed well, with small-class revenues accounting for 35% of the total small-class revenue, compared with 22% in the same period a year earlier. This once again proves the measurable nature of a good future brand in the new market. As for the core market, Shanghai is doing well, thanks mainly to the growth in the number of students.

2 As we expected, the expansion of the good future, a net increase of 9 teaching centers in the second quarter, so that the total number of teaching centers reached 364. The second quarter, the number of good future students increased by 25%.

3 Gross Profit margin of 53.3%, flat. However, we believe that due to the high utilization rate of the current teaching center, the outlook of gross margin in the next few quarters is optimistic. Based on non-US GAAP, operating profit margins grew 1% per cent year-on-year, mainly thanks to marketing cost control. For the new teaching center, we expect that 6 months to 9 months to achieve a profit margin balance.

4 The second fiscal quarter deferred revenue of 143.7 million U.S. dollars, an increase of 39%. Meanwhile, the good future also donated 200,000 of dollars to support Yaan earthquake victims.

The future will be in the US Eastern Time October 22, 2013 8 o'clock in the morning (Beijing time October 22 Evening 8 o'clock) The earnings conference call, after which we will evaluate its stock rating and target share price.