AACG - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to ATA Creativity Global's First Quarter 2021 Financial Results Conference Call. At this time all participants are in a listen-only mode. A question and answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. I would now like to turn the conference over to your host, Carolyne Sohn of The Equity Group. you. Thank

begin. may You

Carolyne Sohn

is and release Thank or announcing first at XX, for operator, of IR us. company's the ACG's for The the website XXXX, March ended press ATA quarter at hello, you, the you section everyone. www.atai.net.cn. joining results available Thank Creatively Global's

XX be the for As website. this of A call, an made at slide website company days. also ACG's available of next part conference presentation accompanying the replay broadcast has this available its will on

get any herein we the call future, include, such will results mergers terms forward-looking education can remind strategy, Reform and harbor would anticipated the other everyone prospects that for and to growth believe, of plan, anticipate, Litigation Before outlook as and Securities safe within Act started, statements like be accompanying provision impact XXXX. future operations, I identified this ACG's statements activities, Private among market and other training and things, forward-looking ACG's growth on COVID-XX of and ACG's expect, the operations, its ACG's of generally, demand meaning measures portfolio the for COVID-XX. by benefits conference contain and of discussed the regarding information programs statements certain implemented anticipated response subsequent in to plan acquisitions business and of plans services, of and ACG's ACG growth and These

law. those with statements to be Information in results those assume are you future new these forward-looking filings not actual that investing prove the in reflected be and events, The Although dramatically obligation encourage market cause in subject uncertainties forward-looking expectations can and no conditions Exchange result expectations are statements making risks the with as about differ Commission, of as the to information, or risks review a otherwise, as could of to is There that company company that believes any before an does by we associated correct. those decision. will any from update to except which its reasonable included investment assurance to Securities today, statements the projected. required ACG the changes in

reported disclaimer the conversions GAAP March All to X noon refer otherwise calculated noted. this the and converted dollar accurate are XX, RMB, otherwise XX, conference conference amounts are call of Slide further the of like buying All using also for of historical you presentation reported, I to presentation as noted. RMBX.XXXX unless US$X, XXXX, The Regarding first XXXX. U.S. its to company financial rate for to March results the rate are all financial based exchange unless under call on would the ended quarter language, information. time from RMB in results in as percentages U.S. relating RMB, of in

following you accompanying Slide of there the the of those along with company on PowerPoint X. For presentation, overview is an

Amy over floor Chairman President, strategy and Amy. Tung, an of with operating In CFO, happy With for and outlook call, call highlights its will take before via a and CEO, quarter Tung, of ACG go-ahead brief on the I'll to the Ms. first XXXX. update CFO, and addition, or long-term Kevin during the session Mr. please that, Jun opening today's Ma, financial we Amy will Zhang, questions overview are than the turn On company's company. today's Q&A follow growth to the the to questions. investor e-mail provide company's for more Ms.

Amy Tung

Good in evening to everyone. appreciate time. you, those And America. Caroline. We everyone's welcome Thank

increase students portfolio student We programs, study significant reporting saw fully promising year. post-pandemic we first to our are that enrollment language in year-over-year of gotten the in the to we major year, learning recovery pleased and XXX counselling, overseas sign start growth training, training. research-based to the quarter foreign are In XX.X% off to the the have a in strong of a terms across

offering XX,XXX. primary challenges training in to opportunity will the Credit program XX.X% in-built X.X% Having increased to reinforce period hours students last benefit same portfolio rising explore an and areas. foundation business of training of XXXX growth for the our to X.XX% Our year. the period, XXX us the give from meet in during which an pandemic, the increase of additional the portfolio

in the begin some seasonality which generally We results of of some XXXX, these to efforts realizing to are tangible due the Spring is Festival impacted first gratified holiday. of by the quarter here Chinese

on are positive working road to COVID-XX this will summer our programs. to closely our [indiscernible] against vaccinations progress the as recovery globally. institutions a At overseas with that hopeful trajectory are we continue We time, partners’

the Given students. circumstances with be of partners health pandemic, summer. we we of to the students International programming to to way maintain our uncertainty have alternative our offer the safety current the is continues global in this best place and and of to this determined a feel travel

be an increased to million delivered as across domestic million programs to top experiences in well pleased benefit in overall major are in quarter. increase look from as by RMBXX.X quarter XXXX RMBXX from to the financials RMBXX.X million from RMBX.X to This the improvement XX% XXXX. non-controlling recover in line improvement primarily prior year RMBXX.X loss million period. was With of overseas an as Net offering in was a interests. quarter to result post-pandemic the quarter driven the partnership our from attributable for primarily improved in in environment. XX.X% XXXX from to net the of period. that This first first we Total by loss offset million services first China, approximate reduced Gross in bootcamps online for let's non-redeemable We various margin institutions. the learning was was with during million, ACG period, the which the during up an prior-year continues XX.X% of operations revenues RMBX.X in

to Moving the sheet. balance

million position With equity shareholders’ deficit to at upon million of working capital was Kevin? financial US$XX.X to US$XX.X deficits Working strategy. with a to growth in outlook and cash US$XX.X I shareholders’ solid was Kevin total XX, now our equivalents. December cash and expand over US$XX.X that, XXXX, in be XXXX. would equity at compared will March to continue like and who We it XX, US$XX.X million and of turn capital respectively

Kevin Ma

you, Amy. Thank

We are during extremely pleased to see achieve first XXXX. of that demonstrated the that turnaround the we elements quarter by

growth very in Our a with lines XX% the all of It’s year-over-year total start increased across elements promising year. to business.

China over in situation health months. public several the stable the past remain As

as are maintain more a regarding This poster that well teaching system vaccinated curriculum have you ACG’s the well you the in the will study centralize aided staff course will about matched past as of the of have are and offering demand been global hear positive students applicable when over of more creative courage our year, outcomes year. reputation delivered stellar as as have We [indiscernible] consistent against this where is we coursework the and the be are to achieve. optimistic the monitoring sales by recovery. leads This the our we is a has this online. the COVID-XX in-person and pursuing and who or way of population continue for the – the

be tools go don’t excellent to we looking In the actually to in world to are the the than most face. interested we match so. real deal place for It’s one with great ACG. many partnering you Our with on abroad to experience prepared success an we mission better can’t advantage to less study everyone’s demand if I That all then when safe a that experience, said, this fully equipped person. another is and meet of there that post-pandemic, is believe offer at are being to speed, it’s before. face continue the take deliver pursue they and but And students provide interact students of do support we where to in need promise can

study working circumstance, with alternatives it’s the our I like current programs, it’s the are offering we’ll students we pleased ACG's this remarks path decided be to like Jun, that floor travel I’d have better our an to mentioned, we will again, an and As that look English on Jun update forward partners domestic programs summer. ahead. and available the international now followed this will which translation. has Zhang, provide hand and please to and bootcamp fishing in online new is initiatives. over options is Mandarin, developed make his our a to us growth make with President, by current partner Andy Jun go forward enjoying abroad those to be

Jun Zhang

Kevin. [Foreign Thank you, Language]

deal and XXXX. response reception quite in-person new and of XXXX, to We and of pleased our we quarter overseas to as online opportunities. educational as and well. our to with do an develop we first the continued to of developing new into expanding boot to restrictions delivery courses positive online. pandemic, a services domestic to complete been can camps of ways so continue research-based programming on the We tours institutions, and international course internship learning put with innovative great continue partnering offerings have and In travel despite some our anticipate found continuing the with online offer head option summer the we effort new anticipate into completely During coursework

this regardless with programming We on are look research-based prepared is our demand to of institutions impacted the worldwide partner how for learning experiences, working forward support for to travel and virtual summer.

XXXX. now can leverage crucial the our technology ways and the We enable of staff a delivery organization. talents as of our in teaching continue is component will method, in our better at well we throughout looking to education It us which process sales as utilize ECG

larger had otherwise With the With opportunities that back them to the may have over Kevin. a across arts help they I'll access not may – population to China of to students technology, providing not forward to. serving otherwise creative that, of look we and it study turn with

Kevin Ma

AACG, groups students the before on operationally the throughout Jun their capitalize to as Carolyne. Panamax Thanks, the work on the [indiscernible] positioned continues At [indiscernible] to gradually the well recovery and that various Panamax particularly and decided Post coursework in studies success. with us, we roads are and financially postpone both resuming to great opportunities

Everyone in played With success. We are and operator, for that a honored their questions. open have safe let’s to health. up stay please it role

Operator

to this Instructions] seems There at be [Operator no time. questions

So, I closing to management remarks. it would any over pass for back

Amy Tung

our Group. all Investor If or reach Thanks questions us. to us, joining for us directly of you the has please free feel Relations again to Equity for firm our anyone to

We are you. to speak quarterly you and available Thank look always speaking during to our with call. next to forward investors

Operator

today's teleconference. concludes This

for You wonderful may time. at this your your line have a you participation. And disconnect Thank now day.

ATA Creativity Global (AACG) 14 May 212021 Q1 Earnings call transcript