Mynd.ai (MYND) 8 Dec 202020 Q3 Earnings call transcript

Hello, ladies and gentlemen, thank you for standing by for the RYB Education, Inc.'s Third Quarter 2020 Earnings Conference Call. At this time all participants are in a listen-only mode. After management's prepared remarks there will be a question-and-answer session. Today’s conference call is being recorded. I will now like turn the conference over to your host, Serena, Investor Relations Manager for the Company. Serena. ahead, go Please

Chief and are everybody Co-Founder, Ms. Officer; Gu, Chief Anida, With Director today's me Executive our Hao Mr. today Yanlai and Officer. hello you, on to call. and Financial Thank Shi, our

forward-looking Please today today find Our and made newswire of of a statements Investor website, webcast is issued website, will our call. our services ir.rybbaby.com. on replay of through On Securities Safe earnings note posted XXXX. you the was discussion Harbor press U.S. Relations the release contain Litigation that earlier the also Act will Reform under today's also provisions Private

Forward-looking statements involve inherent and uncertainties. risks

any other fiscal as and obligation actual Commission. today. in company year does filings the not and uncertainties required filed with As Company's results such, update Form expressed be statements, company's XXXX, annual the December any Further report Exchange materially XX, the U.S. for Securities these different under on the applicable The regarding forward-looking ended views assume risks law. is from except information XX-F included as and may other the and to

The During press third to this management discuss only. also unaudited quarter financial most directly unaudited unaudited call the measures reconciliation purposes informational XXXX measures. will non-GAAP earnings of a release for measures contains certain the today, company's non-GAAP GAAP comparable

on and her updates Shi I'll quarter take us business. to Now provide a Ms. through of the for call third turn review the to the

XXXX. Chief a review have Officer, reviewing us business for over the our more take the quarter [Foreign results Language] to with you Then financial. Financial of follow I'll today. and Thank you our by begin detailed will of of joined Chris, and all operating who third

back-to-school reopened second to saw of COVID-XX, rate In Singapore pandemic, we At closed in directly operated kindergartens, quarter quarter. all directly due openings operated Following to COVID-XX directly the the in China have the close operation. of of which to kindergartens kindergartens. previously a of XXXX, end started resumed XX third Phase the X the effective our XX% and operated control were temporarily have our facilities our

operated resumed have the previous our normal For operations end that of directly at quarter. the kindergartens

COVID-XX Our safety and protocols staff students, members. health place operate protect the with well to families, to facilities in of as continue as

For agencies closely COVID-XX communication education a reopened, the protocols only parents, facilities that recently bureaus strict to to kept on safe ensure we've by and follow with efficient and have inspections by focus issued enhanced a carried guidelines vigilantly government local joint practices. and open and related cleaning We out kindergartens. with hygienic timely and with cooperate return

plus call focus As ramp up mentioned an approach company on is of online facilities. we taking in the the earnings reenrollment offline the reopened quarter, and last already as

individual we onsite kindergartens. at example, promotional weekly with tours have activities For online

the of of an students the there X% around of quarter in directly increase third in a enrolled our continued XX,XXX of As facilities converted reopening conditions conversion was some hence children the inclusive as the after operate size increase kindergartens, in to well. for preparation permit students the year, Singapore, our prior and Leveraging to end facilities total efforts operated community reenrollment enrollment and more at proactive to in can the enroll, China as our from and by total increase end quarter. class were we XX,XXX this in that the allow the

period facility franchise to Thanks in the their country of in parent COVID-XX. Based Center September. effective order addition, the centers September collected the conducted to end resumed provided XX% pursuit after temporary facility the of franchise each the closure. targeted reopened By individualized facility approximately feedback, quarter of operation. management of control third kindergarten of the Many a in satisfaction the improving play-and-learn In assist and to previous feedback across PLCs survey on of has we continued specific service Office team quality.

our teacher support continues supervisory operational and and franchisees provide regular franchise training to in-person both Our team to have online resumed. and

expect also existing develop products curriculum classroom extend aids center for play-and-learn R&D for online upgrade completed hard including course team our and sale curriculum and has course working example, Take and offerings to very new Our team teaching has available been tutor development home also toys. not September. XX our hours franchise of for of remaining play-and-learn end only classroom suitable tutor video-based will interaction Once be video course for hours the as an recording completed, parenting, we And but to December. in interesting in centers. complete course

our we third integrated towards to online-merge-offline continued our in way model. Lastly business quarter, work this

In protocols most of COVID-XX the more our the believe The liquidity pandemic our childhood our due we management early year. operation continued strengthen facilities in closed committed of We measures resumed and and systems service pandemic, We financial their six important temporarily measures for effective tools by After kindergartens normal are helping communication delivering and virus the serve testing that quick kindergarten. half parents to provide and optimize platform sheet this ensure the each to first experience operations and have feel stringent presented the third and to nine operating were between to of prompt first continue and the in kindergartens account to operation, accelerated types its year and control more this to months the highlights children facilities different of response parents. as to better disruptions efficiency it kindergarten than their important directly I'll The education development, of having integrated cost taken forward the home company's control Thanks continue look to official an Our will response stay link in-school early with systems had CFO, company's business other work early to and sustainability carry coming over proactive Chris regular and to health children and and that, facilities of COVID-XX. team I improve their back an company with and for of costs results. kindergarten of specific old operated With facility directly out the most balance operated operations in substantial to services. for position. quarter to facilities. the improving challenges the promotion of education assured alike In XXXX, students flexibility. facilities and products recovery. zero quarters. to education to the to successfully reopened financial enrolled and ramp quarter. turn September, previous the in end By the

earnings Relations complete website now on posted the Please quarter. past our discussion release financial Investor for results. quarter Thank third performance go our you, also our of Serena. Grace a I financial through will to and our refer for press

of company operations. third to the at success very We are in pleased In recovery quarter, our efforts core resumed operations to our reopening in restore the and the we September quarter of of beginning business thanks facilities made most facilities. our and the directly with as as business franchise operated our

previous top more XXX% recovered the from Our quarter. by line than

foundation us our by XX.X% Cash we addition, from additional operations. the improved of compared SG&A solid the which second and gave by the measures. expenses cost quarter also quarter balance as In with decreased US$XX.X for financial flexibility same million a stringent control the adopt end continue last to year,

performance will of centers, local standardized provide operations, facilities. to efficiency operational support we operation more and play-and-learn focused forward, to stay and continue standardized systematic improve and and of optimize kindergartens and the our Going our

caused quarter moving of million million, US$XX.X quarter revenues with for Now the revenue were was compared of for for Services’ primarily the year this on to the million XXXX COVID-XX XXXX. fee quarter the quarter to of US$XX.X the third tuition million with net US$XX.X financials, XXXX. decreased third were due same US$XX.X third compared impact. by the quarter same The decrease for

in tuition the also gradual business in Singapore. million US$X.X US$XX.X decrease profit million, a recovery from the expansion franchisees third their and gradual operated cost a at operated Franchise a opened reopenings this XXXX. of quarter recovery US$X.X a offset center quarter million revenues the and revenues an third decrease third in operations after to US$X.X year this Singapore suspension Cost quarter contributed by the for newly quarter XXXX. the play-and-learn franchise which of US$XX.X decrease US$X.X for Gross through million service revenues the of was operating for same for million, rental the US$X.X enrollment, of to US$X with for the increase units. of in this company's quarter due this suspension quarter. decrease - US$X.X compared primarily same as quarter since lower US$XX.X the same of third the the were XX% directly cost facilities quarter Total was year. same few have to and Cost compared revenues year May, revenues facilities compensation, year. over of we year. with Product direct year. company's were compared the Cost primarily was million late was the US$XX.X fee as the million service China the due had revenues The million in The for for compared in representing expenses quarter quarter products decrease compensation was was resumed quarter decreased revenues with facilities quarter which XXXX The for third million, another third revenues year the in of quarter year was this amount third XXXX May same from our the quarter of existing for increase late was US$X.X of the million, million, XX.X% of and last network in same generated partially for their compared decrease with September. opened sold for third million, franchise in of over in the in by network with for staff is merchandise the operation last from from directly last services for due company's also operation student While staff was in XXXX. we XX.X% slowdown XX%, operations gradually decrease

million operating compensation which were share-based US$X.X this decrease last [US$XXX,XXXK] compared the XXXX. third were the quarter General quarter the XXXX. expenses administrative US$X.X quarter from US$X.X the for in quarter for this a US$X same expenses, year compared quarter same million, for in were year. is of year Excluding third million million, with for [US$XXX,XXXK] XX.X% same the expenses for Selling and with expenses

US$X.X last million US$X.X loss US$X.X US$X.X the carried Operating net operational from loss were same per in US$X.XX attributable this both third primarily Net per expenses US$X.X the compared to diluted million RYB the ordinary million, G&A with depositary for quarter period included for to excluding US$X.XX compensations, decrease strict US$X.XX of of third G&A with in for of was same positive year were this attributable US$X.X quarter the million, this company this third was share-based was a positive operational Adjusted million year. Adjusted of year. compared operating million million compensation, travel expenses US$X.X to quarter The year. of Adjusted and the last quarter compared Basic for million the due quarter, and year, loss were quarter ADS for of fees, million loss for professional US$X.X that was same last for with American for loss was shareholders quarter loss with third quarter year. year quarter the same for attributable compared compared also quarter million, compensation, the EBITDA for expenses. year was for a US$X.X compared the last ordinary for third a third US$X.X representing for with year. in of the quarter third US$X.XX both for the same the with to million loss quarter. headquarters, year. year to shareholders in share-based both US$X.X the control staff million, this US$X.X quarter, the shareholders year for compensation US$X.X decrease Adjusted year. was compensation expenses, same net the US$X.X for XXXX. quarter US$X.X which and compared of million loss net million, last basic loss a both same to terms the attributable the the the same shareholders in EBITDA - with excluded compared million a in US$X.X for million XX.X% last year. this the a loss share-based Excluding we quarter a cost a share our expense of out quarter G&A in measures were diluted last expenses other share-based third last impact respectively terms of in particular for this The for quarter

have of of outlook, most reopened during business expect the in currently Now been this to quarter. pandemic of business our terms fourth recover release, our to press facilities continue as as of we from the date the

management's For The currently to the on current management market above company's expects fourth based million. quarter net of US$XX the the conditions XXXX, range be the in US$XX million is to of and outlook revenues of reflects that current which change. - as to and And as customer demand, the subject concludes company's preliminary presentation. prepared operating of our and estimates conditions are all market still well

go to open questions. please now you. Anida, call will the Thank We ahead.

Elsie Stanley. Sheng [Operator with go Morgan ahead. Instructions] today The comes Please first question from

student [your-self] new recruitment My kindergartners. you, Thank about is management. of operated first question

original the wondering, to students what recruitment - and you new your year the is the and have returned any of detail of to is of You do outlook still have has the do about mentioned, the And Thank result you. your your mentioned the - second is margin efficiency for in any student coming you the any online-offline-merged impact over from of share strategy? I'm that my you kindergartens. terms metrics. recruitment COVID? also there XX% question And growth as during recruits about

is the on rolling prior reopened our closure. reenrollment rather directly facility of after temporary or operated enrollment basis, period So as a kindergartens

for team reopening and Beijing lot an the together September, open Before preparing efforts parents. in kindergarten early kept of of in kindergartens with individual reopening and a made in management communication facilities

capacity operated resumed a of some on of enabled temporary ongoing for new was continue students the period, basis, have So have renovation operation, the level during closure classes. good be always efforts focus off enrollment example, directly a more include after larger and for on site an to a maintaining some and overall admitted rolling kindergartens facilities

with and operated teaching. tutor X, catch parent parent directly the up steps Beijing them virtual facilities. example, for the parents for memories their bring and So in to kindergarten reopening of June countdown to Started and from pre-pandemic video a shared quality back in made sessions facilities online help ready we the children and for good to and one-on-one return we snippets recordings life get five

For or batch end outside ready September, of May to Beijing, they or the of the gradually started Phase from June-ish. the they kindergartens welcome the second a quarter students by quite located to of X September school. returned around opening And full were

in Before enrollment to good small good in to charging the September along some semester, some related contributed online feedback courses September. areas, enrollment courses a which received fee were preparation, and made available with a

of to our September. students of which of And facilities another the response circumstances, not facilities. the September pandemic, when So March a in admission enroll This in brought the are of number in September normal year. year by batch reopened, mainly enrollment due two those as or contributed there enrolled. enrolled the we students Most to under March and chose in result, temporarily students peaks closed were one challenges this to each

and increase that on had you September also facilities number enrolled our end we opened this also do top of the sets. of sorry meaningful almost the also And increase opened September I a add directly The of XX,XXX few four comparison. that And over exclude of the and XX,XXX. also student we this newly the from of data apologies. year. The know, past Elsie actually was students total if facilities last XX% we total XX% year enrollment quarters And also, of at of the are apple-to-apple can is end Yes, enrolled students. end this were a students students as at September, number operated from that

represents September the last And XX,XXX was end September So students. the year of this this the students XX,XXX by XX% students basically a year. of from increase end

So this as facilities suspended March Grace or because pandemic. year, essentially closed the in - of mentioned, were our

we we in this have enroll year. were new So would semester students for that new September the new enrolled, to still able that the semester, them

the attendance not the November, the operated year, efforts actually reflects end to was the number who number X,XXX yet started I this our this students also with a to total result fee, the of this in number also And and So enrollment at that of at total contributed had mentioned. of contributes registered just directly actually facilities enrollment of our but And the early students. increased future. students

center So question of aspects in to kindergarten company's second for and our the operations and core we’ll the plan focus business following XXXX, continue on the business. our

good directly a at stay time inclusive And students the kindergartens, at and for So operated same our committed education high to families. maintain kindergartens. enrollment providing the we to and service quality

on Secondly, in our can enabled more the online we'll offering kindergarten profit national to there by and forward are kindergartens. in the period some the kindergarten operations in-house we to run-up features are students. international a work premium operators. that and teams to look addition, kindergartens still core in revamping enroll And of moment, some our and introducing premium other in R&D courses developed continue At still with

In terms services sales, and marketing, provide to and education. of franchisees strengthen and we’ll providing with our play-and-learn the training improved home continue center in supervisory them administration our by to support bond business,

solid centers online-merge-offline control efforts third-party We'll and spending and we’ll its core remains current to upgraded prudently focus us integrated system plenty education and system The model. its of in On to play-and-learn kindergartens deliver support also help in business the operations our company and costs support, us and better on the business more our serve operators. continue opportunities its operational and good operators results. other offerings and and an extend we planners will reach and believe will out product market. to hand, for there an With early be a

think about continue as our questions business centers. I your outlook business will next of focus on kindergartens to mentioned, play-and-learn on we margins Chris the and the Elsie core year, for And

after in For significant to tuition operated I of balanced margins some to, I large maintain kindergartens, international I for I kindergarten to to utilization the increase think students the largely with another unchanged. up our size us think play-and-learn do of at the inclusive full directly see enrolled by operated up, number out high the we students fee. and for facilities, is conversion increase or a sales of conversion. know will merchandise, continue slightly you for reduction increase a are we next margins for facility this And facilities ramp end a directly to ramp But be class and our of profit franchise And margins remain enrolled hope our kindergarten also will in in rate the focus of or our business. with mitigated extent, year, of of terms some facilities. for the stable, And this we think branded profit model anticipate centers and the and quite our think

some control to more also as stage hope earlier that made as well stringent challenge us. our for we incurred strategic cost by sign also or the of Because So be try the us or I investment you main margins network. making us headquarters prudent in franchise at that by continue contracts next expanding BXB increase know really task is overall we at And our up for margin next adopting losses level, the to sales the targets year think for new look we and if early investments. to year, measures you

hopefully will strategic our year. additional investments So, prudent growth margin help on us the being overall more improve also making next for

comes question next Capital]. The Han Please ahead. go [Sam Sage with from

supply you. due on please any foreign to teacher you Could impacts Thank pandemic? the introduce

enrollment. to and border kindergartens facility adjustments the teachers COVID-XX closure restrictions certain the on and impact The a during some of China facilities immigration some as arranged to company maintain foreign in the the, virtual experienced of control learning due policies has and global maintaining in pandemic. to sessions frequent So, online in which helped previously period result to temporary conduct

end to leveraging example, for to our out foreign flexibility transfer support facilities. inclusive So profit and for we're to that there converted kindergartens, accordingly practices recruitment we're high internal are by recently for adjusting teachers able facilities

shortened addition, teachers foreign measures In the during day the addressing some are the of interactions online also sessions teaching and other issue.

team management recruitment the on talent Our to various continues work through channels.

these of a to it Although costs the kindergartens. foreign under is some international enrollment result as teachers circumstances, the premium of rise may of the as current and great help labor

The go next from question comes [indiscernible]. Please ahead.

on comments your preschool the on I see It's noticed business there online education the Thank proposed in management solicit was impact on September, drop a you. likely of impressive track. But to opinion. public also back business? to law the posted Can

teams, offerings our with business law company the franchise and the in help proposed With internal of impact the were offerings Currently, Carefully service kindergartens, has in in what on and affect legal the laws education line briefed generally in in of China. draft. expected. external operated we only proposed operation and preschool studied Singapore. company's the diversified previously other and centers, may it’s possible the operations The our in are directly operations play-and-learn business, service kindergarten regulations

regulations For in of accordance At in with you. has the law ensure to compliance legal clear the the make promptly for with the community the information. preschool directly the future communicate company Thank appropriate is timetable marked. education moment, once - the there We’ll promulgation as business, investor operations. will of no operated further official being the kindergarten company the adjustments

concludes conference closing for turn remark. the over the question-and-answer session. back This like our I to company to now any would

Anida. you, joining everybody today. And Thank thanks, the us call on for

have you day. great any at further us you contact hope hesitate questions, If a please have ir@rybbaby.com.We do not to

This concluded. conference today's attending for you has now Thank presentation.

You disconnect lines. your may now