UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

 

For the month of March 2018

 

Commission File Number: 001-36403

 

IKANG HEALTHCARE GROUP, INC.

(Exact name of registrant as specified in its charter)

 

B-6F, Shimao Tower

92A Jianguo Road

Chaoyang District, Beijing 100022

People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

 

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

IKANG HEALTHCARE GROUP, INC.

 

 

 

By:

/s/ YANG CHEN

 

Name:

Yang Chen

 

Title:

Chief Financial Officer

 

Date: March 23, 2018

 

2



 

Exhibit Index

 

Exhibit 99.1 —  iKang Announces Unaudited Financial Results for the Fiscal Third Quarter Ended December 31, 2017

 

3


Exhibit 99.1

 

 

iKang Announces Unaudited Financial Results for the Fiscal Third Quarter Ended December 31, 2017

 

BEIJING, MARCH 22, 2018 (GLOBE NEWSWIRE) — iKang Healthcare Group, Inc. (“iKang” or the “Company”) (Nasdaq: KANG), major provider in China’s fast growing private preventive healthcare services market, today announced its unaudited financial results for the fiscal third quarter ended December 31, 2017.

 

Fiscal Third Quarter Ended December 31, 2017 Financial Highlights

 

·                  Net revenues were US$206.4 million, an increase of 33.5% year-over-year (an increase of 29.3% on RMB basis) (1)

 

·                  Gross profit was US$104.9 million, an increase of 43.5% year-over-year (an increase of 38.9% on RMB basis) (1)

 

·                  Net income attributable to the Company was US$27.1 million, an increase of 93.0% year-over-year (an increase of 86.8% on RMB basis) (1)

 

·                  Non-GAAP net income attributable to the Company(2) was US$27.5 million, an increase of 89.2% year-over-year (an increase of 83.1% on RMB basis) (1)

 

·                  Basic and diluted income per ADS attributable to common shareholders were US$0.39 and US$0.39, respectively, as compared to US$0.21 and US$0.20, respectively, in the fiscal third quarter of 2016

 

·                  Non-GAAP basic and diluted income per ADS(3) attributable to common shareholders were US$0.40 and US$0.40, respectively, as compared to US$0.21 and US$0.21, respectively, in the fiscal third quarter of 2016

 

Fiscal Nine Months Ended December 31, 2017 Financial Highlights

 

·                  Net revenues were US$474.4 million, an increase of 26.3% year-over-year (an increase of 26.2% on RMB basis) (1)

 

·                  Gross profit was US$224.0 million, an increase of 30.2% year-over-year (an increase of 29.9% on RMB basis) (1)

 

·                  Net income attributable to the Company was US$50.1 million, an increase of 127.7% year-over-year (an increase of 124.1% on RMB basis) (1)

 

·                  Non-GAAP net income attributable to the Company(2) was US$51.3 million, an increase of 118.5% year-over-year (an increase of 115.2% on RMB basis) (1)

 

·                  Basic and diluted income per ADS attributable to common shareholders were US$0.73 and US$0.72, respectively, as compared to US$0.32 and US$0.32, respectively, in the first fiscal nine months of 2016

 

·                  Non-GAAP basic and diluted income per ADS(3) attributable to common shareholders were US$0.75 and US$0.74, respectively, as compared to US$0.35 and US$0.34, respectively, in the first fiscal nine months of 2016

 


(1) RMB basis refers to the year on year comparison made on local currency — Chinese Renminbi basis.

(2) Non-GAAP net income attributable to the Company is defined as net income attributable to the Company excluding share-based compensation expenses. For more information on these non-GAAP financial measures, please see the section captioned under “Non-GAAP Financial Measures” and the tables captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this release.

(3) Non-GAAP basic and diluted earnings per ADS is defined as non-GAAP net income divided by the weighted average number of basic and diluted ADS.

 

1



 

“We delivered another very strong quarter with robust performance across all of our business, financial and operation metrics.” said Mr. Lee Ligang Zhang, Chairman and Chief Executive Officer of iKang. “The continuous growth and outstanding performance are strong testaments to our strategic initiative of building an ecosystem of preventive healthcare service with iKangCare+ and iKangPartners+  plans and our focus on delivering innovative and premium service to our customers. ”

 

“In this quarter, iKang recorded an exceptional revenue growth of 33.5% year-over-year, supported by a 21.2% increase in customer visits and increasing demand for both our core and value-added services with the increase in the average selling price for both individual and corporate customers. As our scale continues to expand, service penetration continues to deepen and operations of medical centers continue to mature, our operating leverage has further enhanced and margins significantly increased. Our gross profit margin increased to 50.8% from 47.3%, operating margin to 23.1% from 17.4% and net profit margin to 13.1% from 9.1%.

 

We have made great strides in executing our strategic priorities of iKangCare+ and iKangPartners+ plans to enable the Company to capitalize on the significant opportunity ahead of us.  Our energy and focus are on expanding our geographical coverage, deepening market penetration in fast-growing tier-2 and tier-3 cities, improving the utilization of our medical centers, improving operational efficiency and introducing additional value-added services to drive business expansion. We are very excited about our significant short term and long term opportunities as we continue to enhance our service differentiation and market leadership to drive sustainable profitable growth.”

 

FISCAL THIRD QUARTER ENDED DECEMBER 31, 2017 UNAUDITED FINANCIAL RESULTS

 

Net Revenues

 

Net revenues for the fiscal third quarter were US$206.4 million, representing a 33.5% increase from US$154.6 million in the same period of the last fiscal year. On RMB basis, the revenue growth was 29.3%. As of December 31, 2017, the number of self-owned medical centers totaled 108 compared to 104 as of December 31, 2016. In this quarter, the Company served approximately a total of 2.40 million customer visits under both corporate and individual programs, representing an increase of 21.2% over the fiscal third quarter of 2016.

 

The table below sets forth a breakdown of net revenues:

 

(US$ million)

 

3rd Fiscal Quarter Ended
December 31, 2017

 

3rd Fiscal Quarter Ended
December 31, 2016

 

YoY % Change

 

Medical Examinations

 

168.0

 

129.3

 

29.9

%

Disease Screening

 

20.7

 

12.7

 

62.5

%

Dental Services

 

5.9

 

3.2

 

83.0

%

Other Services

 

11.8

 

9.3

 

28.0

%

Total

 

206.4

 

154.6

 

33.5

%

 

Medical Examinations: Net revenues for the quarter were US$168.0 million, representing a 29.9% increase from US$129.3 million in the same period of the last fiscal year.

 

Disease Screening: Net revenues for the quarter were US$20.7 million, representing a 62.5% increase from US$12.7 million in the same period of the last fiscal year. Disease screening services refer to the additional services requested by individuals under the basic corporate medical examination programs as a result of individual needs.

 

2



 

Dental Services: Net revenues for the quarter were US$5.9 million, representing an 83.0% increase from US$3.2 million in the same period of the last fiscal year.

 

Other Services: Net revenues for the quarter were US$11.8 million, representing a 28.0% increase from US$9.3 million in the same period of the last fiscal year.

 

Cost of Revenues

 

Cost of revenues for the quarter was US$101.4 million, representing a 24.6% increase from US$81.4 million in the same period of the last fiscal year.

 

Gross Profit and Gross Margin

 

Gross profit for the quarter was US$104.9 million, representing a 43.5% increase from US$73.1 million in the same period of the last fiscal year. Gross margin for the quarter was 50.8%, as compared to 47.3% in the third quarter of the last fiscal year.

 

Operating Expenses

 

Total operating expenses for the quarter were US$57.2 million, representing a 23.7% increase from US$46.2 million in the same period of the last fiscal year.

 

Selling and marketing expenses

 

Selling and marketing expenses for the quarter were US$32.6 million, accounting for 15.8% of total net revenues as compared to 13.9% in the same period of the last fiscal year.

 

General and administrative expenses

 

General and administrative expenses for the quarter were US$23.8 million, accounting for 11.5% of total net revenues as compared to 15.4% in the same period of the last fiscal year.

 

Research and development expenses

 

Research and development expenses for the quarter were US$0.8, accounting for 0.4% of total net revenues as compared to 0.6% in the same period of the last fiscal year.

 

Income from Operations

 

Income from operations for the quarter was US$47.7 million, representing a 77.4% increase from US$26.9 million in the same period of the last fiscal year. Excluding share-based compensation expenses of US$389,000 for this quarter and US$489,000 for the same quarter last year, non-GAAP income from operations for the quarter was US$48.1 million as compared to US$27.4 million, which reflected an increase of 75.7%.

 

Non-GAAP EBITDA

 

Non-GAAP EBITDA for the quarter was US$58.7 million, representing a 59.6% increase from US$36.8 million in the same period of the last fiscal year.  Non-GAAP EBITDA margin for the quarter was 28.4% as compared to 23.8% for the same quarter last year.

 

Net Income

 

Net income attributable to the Company for the quarter was US$27.1 million, representing an increase of 93.0% from US$14.0 million in the same period of the last fiscal year.

 

Non-GAAP net income for the quarter was US$27.5 million, representing an increase of 89.2% from US$14.5 million in the same period of the last fiscal year. Non-GAAP net income margin for the quarter was 13.3% as compared to 9.4% for the same quarter last year.

 

3



 

Basic and Diluted Earnings per ADS

 

Basic and diluted income per ADS attributable to common shareholders were US$0.39 and US$0.39, respectively, as compared to US$0.21 and US$0.20, respectively, in the same quarter of 2016.

 

Non-GAAP basic and diluted income per ADS attributable to common shareholders were US$0.40 and US$0.40, respectively, as compared to US$0.21 and US$0.21, respectively, in the same quarter of 2016.

 

FIRST FISCAL NINE MONTHS ENDED DECEMBER 31, 2017 UNAUDITED FINANCIAL RESULTS

 

Net Revenues

 

Net revenues for the first fiscal nine months were US$474.4 million, representing 26.3% increase from US$375.6 million in the same period of the last fiscal year. On RMB basis, the revenue growth was 26.2%.  From the beginning of the year, we have added eight new medical centers. During this period, the Company served approximately a total of 5.64 million customer visits under both corporate and individual programs, representing an increase of 16.7% over the first fiscal nine months of 2016.

 

The table below sets forth a breakdown of net revenues:

 

(US$ million)

 

First Fiscal Nine Months
Ended December 31, 2017

 

First Fiscal Nine Months
Ended December 31, 2016

 

YoY % Change

 

Medical Examinations

 

385.0

 

314.5

 

22.4

%

Disease Screening

 

45.1

 

29.0

 

55.4

%

Dental Services

 

13.4

 

6.9

 

93.3

%

Other Services

 

30.9

 

25.1

 

23.2

%

Total

 

474.4

 

375.6

 

26.3

%

 

Medical Examinations: Net revenues for the period were US$385.0 million, representing a 22.4% increase from US$314.5 million in the same period of last fiscal year.

 

Disease Screening: Net revenues for the period were US$45.1 million, representing a 55.4% increase from US$29.0 million in the same period of last fiscal year. Disease screening services refer to the additional services requested by individuals under the basic corporate medical examination programs as a result of individual needs.

 

Dental Services: Net revenues for the period were US$13.4 million, representing a 93.3% increase from US$6.9 million in the same period of the last fiscal year.

 

Other Services: Net revenues for the period were US$30.9 million, representing a 23.2% increase from US$25.1 million in the same period of the last fiscal year.

 

Cost of Revenues

 

Cost of revenues for the period was US$250.4 million, representing a 23.0% increase from US$203.6 million in the same period of the last fiscal year.

 

4



 

Gross Profit and Gross Margin

 

Gross profit for the period was US$224.0 million, representing a 30.2% increase from US$172.0 million in the same period in the last fiscal year. Gross margin for the period was 47.2%, as compared to 45.8% in the same period of the last fiscal year.

 

Operating Expenses

 

Total operating expenses for the period were US$134.9 million, representing an 8.8% increase from US$123.9 million in the same period of the last fiscal year.

 

Selling and marketing expenses

 

Selling and marketing expenses for the period were US$71.5 million, accounting for 15.1% of total net revenues as compared to 15.0% in the same period of the last fiscal year.

 

General and administrative expenses

 

General and administrative expenses for the period were US$61.1 million, accounting for 12.9% of total net revenues as compared to 17.3% in the same period of the last fiscal year.

 

Research and development expenses

 

Research and development expenses for the period were US$2.3 million, accounting for 0.5% of total net revenues as compared to 0.7% in the same period of the last fiscal year.

 

Income from Operations

 

Income from operations for the period was US$89.1 million, representing an 85.4% increase from US$48.1 million in the same period of the last fiscal year. On RMB Basis, the increase was 83.1%.  Excluding share-based compensation expenses of US$1,162,000 for this period and US$1,462,000 for the same period of the last year, non-GAAP income from operations for the period was US$90.2 million as compared to US$49.5 million, which reflected an increase of 82.2%.

 

Non-GAAP EBITDA

 

Non-GAAP EBITDA for the period was US$121.4 million, representing a 57.7% increase from US$77.0 million for the same period of the last fiscal year.  Non-GAAP EBITDA margin for the period was 25.6% as compared to 20.5% for the same period last year.

 

Net Income

 

Net income attributable to the Company for the period was US$50.1 million, representing an increase of 127.7% from US$22.0 million in the same period of the last fiscal year.

 

Non-GAAP net income for the period was US$51.3 million, representing an increase of 118.5% from US$23.5 million in the same period of the last fiscal year. Non-GAAP net income margin for the period was 10.8% as compared to 6.3% for the same period last year.

 

Basic and Diluted Earnings per ADS

 

Basic and diluted income per ADS attributable to common shareholders were US$0.73 and US$0.72, respectively, as compared to US$0.32 and US$0.32, respectively, in the first fiscal nine months of 2016.

 

Non-GAAP basic and diluted income per ADS attributable to common shareholders were US$0.75 and US$0.74, respectively, as compared to US$0.35 and US$0.34, respectively, in the first fiscal nine months of 2016.

 

5



 

Cash and Cash Equivalents

 

As of December 31, 2017, the Company’s cash and cash equivalents, restricted cash and term deposit totaled US$77.7 million, as compared to US$45.5 million as of September 30, 2017.

 

GUIDANCE FOR FISCAL YEAR 2017 ENDING MARCH 31, 2018

 

For the fiscal year 2017 ending March 31, 2018, the Company reaffirms its guidance of net revenue to be between RMB3.57 billion and RMB3.72 billion, representing a year-on-year increase between 22% and 27%.

 

This guidance is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

 

Conference Call

 

iKang’s management will host a conference call at 8:00 am US Eastern Time (8:00 pm Beijing/Hong Kong Time) on March 23, 2018, to discuss its quarterly results and recent business activities.

 

To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time:

 

China:

4006-208-038

Hong Kong:

800-906-601

United States:

186-6519-4004

International:

+65 6713-5090

Passcode:

7294807

 

The Company will also broadcast a live audio webcast of the conference call. The webcast will be available at http://ir.ikang.com/.

 

Following the earnings conference call, an archive of the call will be available by dialing:

 

China:

4006-322-162

Hong Kong:

800-963-117

United States:

185-5452-5696

International:

+61 2 8199-0299

Replay Passcode:

7294807

Replay Available Date:

11:00 ET March 23, 2018 — 08:59 ET March 31, 2018

 

6



 

About iKang Healthcare Group, Inc.

 

iKang Healthcare Group, Inc. is one of the largest providers in China’s fast-growing private preventive healthcare space through its nationwide healthcare services network.

 

iKang’s nationwide integrated network of multi-brand self-owned medical centers and third-party facilities, provides comprehensive and high-quality preventive healthcare solutions across China, including medical examination, disease screening, outpatient service and other value-added services. iKang’s customer base primarily comprises corporate clients, who contract with iKang to deliver medical examination services to their employees and clients, and receive these services at pre-agreed rates. iKang also directly markets its services to individual customers. In the fiscal year ended December 31, 2017, iKang served a total of 5.64 million customer visits under both corporate and individual programs.

 

As of March 22, 2018, iKang has a nationwide network of 110 self-owned medical centers, covering 33 of China’s most affluent cities: Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, Tianjin, Nanjing, Suzhou, Hangzhou, Chengdu, Fuzhou, Jiangyin, Changzhou, Wuhan, Changsha, Yantai, Yinchuan, Weihai, Weifang, Shenyang, Xi’an, Wuhu, Guiyang, Ningbo, Foshan, Jinan, Bijie, Qingdao, Wuxi, Kaili, Mianyang and Zhenjiang, as well as Hong Kong. iKang has also extended its coverage to over 200 cities by contracting with over 400 third-party facilities, which include select independent medical examination centers and hospitals across all of China’s provinces, creating a nationwide network that allows iKang to serve its customers in markets where it does not operate its own medical centers.

 

Forward-looking Statements

 

This press release contains forward-looking statements. These statements, including management quotes and business outlook, are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “intend,” “potential,” “plan,” “goal” and similar statements. iKang may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These forward-looking statements include, but are not limited to, statements about: the Company’s goals and strategies; its future business development, financial condition and results of operations; its ability to retain and grow its customer base and network of medical centers; the growth of, and trends in, the markets for its services in China; the demand for and market acceptance of its brand and services; competition in its industry in China; relevant government policies and regulations relating to the corporate structure, business and industry; fluctuations in general economic and business conditions in China. Further information regarding these and other risks is included in iKang’s filing with the Securities and Exchange Commission. iKang undertakes no duty to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

 

IR Contact:

 

iKang Healthcare Group, Inc.

Christy Xie

Director of Investor Relations

Tel: +86 10 5320 8599

Email: ir@ikang.com

Website: www.ikanggroup.com

 

FleishmanHillard

Email: ikang@fleishman.com

 

7



 

IKANG HEALTHCARE GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of US dollars, except share data and per share data)

(Unaudited)

 

 

 

As of

 

As of

 

 

 

March 31,

 

December 31,

 

 

 

2017

 

2017

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

64,898

 

$

77,671

 

Restricted cash

 

392

 

 

Term deposits

 

4,359

 

 

Accounts receivable, net of allowance for doubtful accounts of $14,261 and $20,530 as of March 31, 2017 and December 31, 2017, respectively

 

79,576

 

157,361

 

Inventories

 

6,781

 

9,269

 

Deferred tax assets-current

 

9,635

 

12,724

 

Amount due from related parties

 

4,538

 

4,698

 

Prepaid expenses and other current assets

 

49,736

 

67,903

 

Total current assets

 

$

219,915

 

$

329,626

 

Property and equipment, net

 

$

163,081

 

$

170,146

 

Acquired intangible assets, net

 

25,852

 

22,863

 

Goodwill

 

107,237

 

114,200

 

Long-term investments

 

180,758

 

188,814

 

Deferred tax assets-non-current

 

16,698

 

21,335

 

Rental deposit and other non-current assets

 

14,950

 

19,190

 

TOTAL ASSETS

 

$

728,491

 

$

866,174

 

LIABILITIES, MEZZANINE AND EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable (including accounts payable of the consolidated VIEs without recourse to iKang Healthcare Group, Inc. of $34,637 and $ 47,226 as of March 31, 2017 and December 31, 2017, respectively)

 

$

39,892

 

$

55,989

 

Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to iKang Healthcare Group, Inc. of $48,910and $73,595 as of March 31, 2017 and December 31, 2017, respectively)

 

59,278

 

89,020

 

Income tax payable (including income tax payable of the consolidated VIEs without recourse to iKang Healthcare Group, Inc. of $6,414 and $21,785 as of March 31, 2017 and December 31, 2017, respectively)

 

11,951

 

29,906

 

Deferred revenues (including deferred revenues of the consolidated VIEs without recourse to iKang Healthcare Group, Inc. of $57,361 and $80,804 as of March 31, 2017 and December 31, 2017, respectively)

 

64,740

 

87,690

 

Short term borrowings (including short term borrowings of the consolidated VIEs without recourse to iKang Healthcare Group, Inc. of $111,299 and $168,399 as of March 31, 2017 and December 31, 2017, respectively)

 

111,299

 

168,399

 

Total current liabilities

 

$

287,160

 

$

431,004

 

Long-term borrowings (including long term borrowings of the consolidated VIEs and VIEs’ subsidiaries without recourse to iKang Healthcare Group, Inc. of $101,697 and $10,836 as of March 31, 2017 and December 31, 2017, respectively)

 

101,697

 

10,836

 

Deferred tax liabilities-non-current (including deferred tax liabilities non-current of the consolidated VIEs without recourse to iKang Healthcare Group, Inc. of $7,009 and $5,171as of March 31, 2017 and December 31, 2017, respectively)

 

7,229

 

6,163

 

Long term payables

 

 

9,222

 

TOTAL LIABILITIES

 

$

396,086

 

$

457,225

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Total iKang Healthcare Group, Inc. shareholders’ equity

 

312,437

 

383,916

 

Non-controlling interests

 

19,968

 

25,033

 

TOTAL EQUITY

 

$

332,405

 

$

408,949

 

TOTAL LIABILITIES AND EQUITY

 

$

728,491

 

$

866,174

 

 

8



 

IKANG HEALTHCARE GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of US dollars, except share data and per share data)

(Unaudited)

 

 

 

Three-month periods

 

Nine-month periods

 

 

 

ended December 31

 

ended December 31

 

 

 

2016

 

2017

 

2016

 

2017

 

Net revenues

 

$

154,569

 

$

206,390

 

$

375,556

 

$

474,406

 

Cost of revenues

 

81,426

 

101,448

 

203,559

 

250,427

 

Gross profit

 

$

73,143

 

$

104,942

 

$

171,997

 

$

223,979

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

$

21,518

 

$

32,586

 

$

56,443

 

$

71,508

 

General and administrative expenses

 

23,864

 

23,783

 

65,009

 

61,085

 

Research and development expenses

 

851

 

835

 

2,485

 

2,301

 

Total operating expenses

 

$

46,233

 

$

57,204

 

$

123,937

 

$

134,894

 

Income from operations

 

$

26,910

 

$

47,738

 

$

48,060

 

$

89,085

 

Interest expense

 

4,370

 

10,036

 

10,733

 

16,291

 

Interest income

 

188

 

64

 

801

 

305

 

Income before income tax expenses and loss from equity method investments

 

$

22,728

 

$

37,766

 

$

38,128

 

$

73,099

 

Income tax expenses

 

5,682

 

9,478

 

9,532

 

18,400

 

Loss from equity method investments

 

(2,920

)

(350

)

(6,082

)

(2,775

)

Net income

 

$

14,126

 

$

27,938

 

$

22,514

 

$

51,924

 

Less: Net income attributable to non-controlling interest

 

90

 

848

 

491

 

1,780

 

Net income attributable to iKang Healthcare Group, Inc.

 

$

14,036

 

$

27,090

 

$

22,023

 

$

50,144

 

Net income attributable to common shareholders of iKang Healthcare Group, Inc.

 

$

14,036

 

$

27,090

 

$

22,023

 

$

50,144

 

Net income per share attributable to common shareholders of iKang Healthcare Group, Inc.

 

 

 

 

 

 

 

 

 

Basic

 

$

0.41

 

$

0.79

 

$

0.65

 

$

1.46

 

Diluted

 

$

0.41

 

$

0.78

 

$

0.64

 

$

1.45

 

Net income per ADS (one common share equals to two ADSs)

 

 

 

 

 

 

 

 

 

Basic

 

$

0.21

 

$

0.39

 

$

0.32

 

$

0.73

 

Diluted

 

$

0.20

 

$

0.39

 

$

0.32

 

$

0.72

 

Weighted average shares used in calculating net income per common share

 

 

 

 

 

 

 

 

 

Basic

 

34,091,668

 

34,314,565

 

34,010,851

 

34,266,628

 

Diluted

 

34,563,876

 

34,672,162

 

34,484,412

 

34,610,248

 

 

9



 

IKANG HEALTHCARE GROUP, INC.

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(In thousands of US dollars, except share data and per share data)

(Unaudited)

 

 

 

Three-month periods

 

Nine-month periods

 

 

 

ended December 31

 

ended December 31

 

 

 

2016

 

2017

 

2016

 

2017

 

Income from operations

 

$

26,910

 

$

47,738

 

$

48,060

 

$

89,085

 

Add:

 

 

 

 

 

 

 

 

 

Share-based compensation expenses

 

489

 

389

 

1,462

 

1,162

 

Non-GAAP operating income

 

$

27,399

 

$

48,127

 

$

49,522

 

$

90,247

 

Net income attributable to iKang Healthcare Group, Inc.

 

$

14,036

 

$

27,090

 

$

22,023

 

$

50,144

 

Add:

 

 

 

 

 

 

 

 

 

Share-based compensation expenses

 

489

 

389

 

1,462

 

1,162

 

Non-GAAP net income

 

$

14,525

 

$

27,479

 

$

23,485

 

$

51,306

 

Income from operations

 

$

26,910

 

$

47,738

 

$

48,060

 

$

89,085

 

Add:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

9,395

 

10,582

 

27,442

 

31,162

 

Share-based compensation expenses

 

489

 

389

 

1,462

 

1,162

 

Non-GAAP EBITDA

 

$

36,794

 

$

58,709

 

$

76,964

 

$

121,409

 

Non-GAAP net income attributable to common shareholders of iKang Healthcare Group, Inc.

 

$

14,525

 

$

27,479

 

$

23,485

 

$

51,306

 

Non-GAAP net income per share attributable to common shareholders of iKang Healthcare Group, Inc.

 

 

 

 

 

 

 

 

 

Basic

 

$

0.43

 

$

0.80

 

$

0.69

 

$

1.50

 

Diluted

 

$

0.42

 

$

0.79

 

$

0.68

 

$

1.48

 

Non-GAAP net income per ADS (one common share equals to two ADSs)

 

 

 

 

 

 

 

 

 

Basic

 

$

0.21

 

$

0.40

 

$

0.35

 

$

0.75

 

Diluted

 

$

0.21

 

$

0.40

 

$

0.34

 

$

0.74

 

 

10