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6-K
IKANG HEALTHCARE GROUP, INC. filed this Form 6-K on 12/21/2018
Entire Document
 

Exhibit 99.1

 

 

iKang Announces Unaudited Financial Results for the Fiscal Second Quarter Ended September 30, 2018

 

BEIJING, DECEMBER 20, 2018 (GLOBE NEWSWIRE) — iKang Healthcare Group, Inc. (“iKang” or the “Company”) (Nasdaq: KANG), a major provider in China’s fast growing private preventive healthcare services market, today announced its unaudited financial results for the fiscal second quarter ended September 30, 2018.

 

Fiscal Second Quarter Ended September 30, 2018 Financial Highlights

 

·                  Net revenues were US$177.7 million, an increase of 16.6% year-over-year (an increase of 19.0% on RMB basis) (1)

·                  Gross profit was US$81.7 million, an increase of 15.6% year-over-year (an increase of 18.0% on RMB basis) (1)

·                  Net income attributable to the Company was US$16.1 million, a decrease of 17.2% year-over-year (a decrease of 15.5% on RMB basis) (1)

·                  Non-GAAP net income attributable to the Company(2) was US$16.4 million, a decrease of 17.7% year-over-year (a decrease of 16.0% on RMB basis) (1)

·                  Basic and diluted income per ADS attributable to common shareholders were US$0.23 and US$0.22, respectively, as compared to US$0.28 and US$0.28, respectively, in the fiscal second quarter of 2017

·                  Non-GAAP basic and diluted income per ADS(3) attributable to common shareholders were US$0.23 and US$0.23, respectively, as compared to US$0.29 and US$0.29, respectively, in the fiscal second quarter of 2017

 

First Fiscal Six Months Ended September 30, 2018 Financial Highlights

 

·                  Net revenues were US$327.9 million, an increase of 22.4% year-over-year (an increase of 19.8% on RMB basis) (1)

·                  Gross profit was US$141.8 million, an increase of 19.1% year-over-year (an increase of 17.0% on RMB basis) (1)

·                  Net income attributable to the Company was US$22.4 million, a decrease of 2.9% year-over-year (a decrease of 3.1% on RMB basis) (1)

·                  Non-GAAP net income attributable to the Company(2) was US$22.9 million, a decrease of 3.9%  year-over-year (a decrease of 4.1% on RMB basis) (1)

·                  Basic and diluted income per ADS attributable to common shareholders were US$0.32 and US$0.31, respectively, as compared to US$0.34 and US$0.33, respectively, in the first fiscal six months of 2017

·                  Non-GAAP basic and diluted income per ADS(3) attributable to common shareholders were US$0.33 and US$0.32, respectively, as compared to US$0.35 and US$0.34, respectively, in the first fiscal six months of 2017 “iKang’s diversified and integrated portfolio of services continued to deliver solid performance for yet another quarter, while the continued investment in strategic initiatives demonstrated our forward-thinking vision to drive transformation in preventive private healthcare in China” commented Mr. Lee Ligang Zhang, Chairman and Chief Executive Officer of iKang. “Total net revenues for the fiscal second quarter and first fiscal six months grew by 16.6% and 22.4%, respectively, compared to those for the same period last year (by 19.0% and 19.8% on RMB basis). We finished the quarter with 115 self-owned medical centers and customers visits under both corporate and individual programs have increased by 15% to approximately 2.10 million as compared to the fiscal second quarter of 2017.”

 


(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


 

“Since the successful launch of iKangCare+ and iKangPartners+ plans in fiscal 2017, we have made significant strides in leveraging these initiatives to further diversify revenue streams and have yielded promising results over the past few quarters.  We are also advancing several new initiatives to deepen our focus in areas of Ai through iKangAi+ and partnership with public hospitals through iKangNetwork+, which were initiatives recently launched in Beijing, Shanghai and Guangzhou” said Mr. Zhang. “We expect the impact of these efforts to accelerate through the remaining of fiscal 2018 and beyond. Our strategy is focused on placing our customers at the center of everything we do and I am very pleased with our progress in continuing to deliver increasing value at an accelerating pace to the millions of customers we serve, helping them live healthier lives and helping make the healthcare system work better for everyone.”

 

“We are very excited of the enormous opportunities presented to us in the private preventive healthcare industry in China. As we look forward, we will drive our growth on the strength of practical innovation that anticipates and responds to increasing customer expectations and needs. We believe we are on solid trajectory to build on our continuous success and commitment to advancing our growth strategies that aim to deliver long-term and sustainable returns to our shareholders.”

 

FISCAL SECOND QUARTER ENDED SEPTEMBER 30, 2018 UNAUDITED FINANCIAL RESULTS

 

Net Revenues (4)

 

Net revenues for the fiscal second quarter were US$177.7 million, representing a 16.6% increase from US$152.4 million in the same period of the last fiscal year. On a RMB basis, the revenue growth was 19.0% compared to the fiscal second quarter of 2017. As of September 30, 2018, the number of self-owned medical centers totaled 115 compared to 110 as of September 30, 2017. In this quarter, the Company served approximately a total of 2.10 million customer visits under both corporate and individual programs, representing an increase of 15.0% compared to the fiscal second quarter of 2017.

 

The table below sets forth a breakdown of net revenues:

 

(US$ million)

 

Fiscal Second Quarter
Ended September 30, 2018

 

Fiscal Second Quarter
Ended September 30, 2017

 

YoY % Change

 

Medical Examinations

 

139.6

 

122.0

 

14.4

%

Disease Screening

 

20.5

 

14.8

 

38.7

%

Dental Services

 

4.6

 

4.6

 

0.8

%

Other Services

 

13.0

 

11.0

 

18.1

%

Total

 

177.7

 

152.4

 

16.6

%

 

Medical Examinations: Net revenues for the quarter were US$139. 6 million, representing a 14.4% increase from US$122.0 million in the same period of the last fiscal year.

 

Disease Screening: Net revenues for the quarter were US$20.5 million, representing a 38.7% increase from US$14.8 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.

 


(4)         iKang adopted ASC 606 by using modified retrospective method since April 1, 2018. The impact of applying this ASC is insignificant.

 

2


 

Dental Services: Net revenues for the quarter were US$4.6 million, which remained stable compared to US$4.6 million in the same period of the last fiscal year.

 

Other Services: Net revenues for the quarter were US$13.0 million, representing an 18.1% increase from US$11.0 million in the same period of the last fiscal year.

 

Cost of Revenues

 

Cost of revenues for the quarter was US$96.0 million, representing a 17.4% increase from US$81.7 million in the same period of the last fiscal year.

 

Gross Profit and Gross Margin

 

Gross profit for the quarter was US$81.7 million, representing a 15.6% increase from US$70.7 million in the same period of the last fiscal year. Gross margin for the quarter was 46.0%, as compared to 46.4% in the second quarter of the last fiscal year.

 

Operating Expenses

 

Total operating expenses for the quarter was US$53.5 million, representing a 39.9% increase from US$38.2 million in the same period of the last fiscal year.

 

Selling and marketing expenses

 

Selling and marketing expenses for the quarter were US$26.8 million, accounting for 15.1% of total net revenues as compared to 12.9% in the same period of the last fiscal year.

 

General and administrative expenses

 

General and administrative expenses for the quarter were US$25.7 million, accounting for 14.5% of total net revenues as compared to 11.7% in the same period of the last fiscal year.  Excluding share-based compensation expenses of US$234,000 for this quarter and US$389,000 for the same quarter of the last fiscal year, the general and administrative expenses for the quarter was US$25.5 million, accounting for 14.3% of total net revenue as compared to 11.4% in the same period of the last fiscal year.

 

Research and development expenses

 

Research and development expenses for the quarter were US$0.9 million, accounting for 0.5% of total net revenues as compared to 0.5% in the same period of the last fiscal year.

 

Income from Operations

 

Income from operations for the quarter was US$28.2 million, representing a 13.0% decrease from US$32.4 million in the same period of the last fiscal year. Excluding share-based compensation expenses of US$234,000 for this quarter and US$389,000 for the same quarter of the last fiscal year, non-GAAP income from operations for the quarter was US$28.5 million as compared to US$32.8 million, which reflected a decrease of 13.3%.

 

Non-GAAP EBITDA

 

Non-GAAP EBITDA for the quarter was US$38.8 million, representing a 10.2% decrease from US$43.2 million in the same period of the last fiscal year.

 

Net Income

 

Net income attributable to the Company for the quarter was US$16.1 million, representing a decrease of 17.2% from US$19.5 million in the same period of the last fiscal year.

 

Non-GAAP net income attributable to the Company for the quarter was US$16.4 million, representing a decrease of 17.7% from US$19.9 million in the same period of the last fiscal year.

 

Basic and Diluted Earnings per ADS

 

Basic and diluted income per ADS attributable to common shareholders were US$0.23 and US$0.22, respectively, as compared to US$0.28 and US$0.28, respectively, in the same quarter of 2017.

 

Non-GAAP basic and diluted income per ADS attributable to common shareholders were US$0.23 and US$0.23, respectively, as compared to US$0.29 and US$0.29, respectively, in the same quarter of 2017.

 

3


 

FIRST FISCAL SIX MONTHS ENDED SEPTEMBER 30, 2018 UNAUDITED FINANCIAL RESULTS

 

Net Revenues (4)

 

Net revenues for the first fiscal six months were US$327.9 million, representing a 22.4% increase from US$268.0 million in the same period of the last fiscal year. On a RMB basis, the revenue growth was 19.8%. From the beginning of the year, we have added five new medical centers. During the period, the Company served approximately a total of 3.79 million customer visits under both corporate and individual programs, representing an increase of 16.7% over the first fiscal six months of 2017.

 

The table below sets forth a breakdown of net revenues:

 

(US$ million)

 

Fiscal Six Months
Ended September 30,
2018

 

Fiscal Six Months
Ended September 30,
2017

 

YoY % Change

 

Medical Examinations

 

258.4

 

217.0

 

19.1

%

Disease Screening

 

37.7

 

24.4

 

54.4

%

Dental Services

 

9.9

 

7.5

 

32.7

%

Other Services

 

21.9

 

19.1

 

14.7

%

Total

 

327.9

 

268.0

 

22.4

%

 

Medical Examinations: Net revenues for the period were US$258.4 million, representing a 19.1% increase from US$217.0 million in the same period of the last fiscal year.

 

Disease Screening: Net revenues for the period were US$37.7 million, representing a 54.4% increase from US$24.4 million in the same period of the last fiscal year.

 

Dental Services: Net revenues for the period were US$9.9 million, representing a 32.7% increase from US$7.5 million in the same period of the last fiscal year.

 

Other Services: Net revenues for the period were US$21.9 million, representing a 14.7% increase from US$19.1 million in the same period of the last fiscal year.

 

Cost of Revenues

 

Cost of revenues for the period was US$186.1 million, representing a 24.9% increase from US$149.0 million in the same period of the last fiscal year.

 

Gross Profit and Gross Margin

 

Gross profit for the period was US$141.8 million, representing a 19.1% increase from US$119.0 million for the same period of the last fiscal year. Gross margin for the period was 43.2 %, as compared to 44.4% for the same period last fiscal year.

 

Operating Expenses

 

Total operating expenses for the period were US$99.6 million, representing a 28.2% increase from  US$77.7 million for the same period of the last fiscal year.

 

Selling and marketing expenses

 

Selling and marketing expenses for the period were US$51.2 million, accounting for 15.6% of total net revenues as compared to 14.5% for the same period of the last fiscal year.

 

General and administrative expenses

 

General and administrative expenses for the period were US$46.8 million, accounting for 14.3% of total net revenues as compared to 14.0% for the same period of the last fiscal year. Excluding share-based compensation expenses of US$526,000 for this period and US$773,000 for the same period last year, the general and administrative expenses for the quarter was US$46.2 million, accounting for 14.1% of total net revenue as compared to 13.6% in the same period of the last fiscal year.

 

Research and development expenses

 

Research and development expenses for the period were US$1.7 million, accounting for 0.5% of total net revenues as compared to 0.5% for the same period of the last fiscal year.

 


(4)         iKang adopted ASC 606 by using modified retrospective method since April 1, 2018. The impact of applying this ASC is insignificant.

 

4


 

Income from Operations

 

Income from operations for the period was US$42.2 million, representing a 2.0% increase from US$41.3 million for the same period of the last fiscal year. Excluding share-based compensation expenses of US$526,000 for this period and US$773,000 for the same period of the last fiscal year, non-GAAP income from operations for the period was US$42.7 million as compared to US$42.1 million for the same period of last fiscal year, which reflected a rise of 1.4%.

 

Non-GAAP EBITDA

 

Non-GAAP EBITDA for the period was US$64.4 million, representing a 2.7% increase from US$62.7 million for the same period of the last fiscal year.  Non-GAAP EBITDA margin for the period was 19.6% as compared to 23.4% for the same period of the last fiscal year.

 

Net Income

 

Net income attributable to the Company for the period was US$22.4 million, representing a 2.9% decrease from US$23.1 million for the same period of the last fiscal year.

 

Non-GAAP net income for the period was US$22.9 million, representing a 3.9% decrease from US$23.8 million for the same period of fiscal 2017.  Non-GAAP net income margin for the period was 7.0% as compared to 8.9% for the same period of the last fiscal year.

 

Basic and Diluted Income per ADS

 

Basic and diluted income per ADS attributable to common shareholders were US$0.32 and US$0.31, respectively, compared to basic and diluted income per ADS attributable to common shareholders of US$0.34 and US$0.33, respectively, in the first fiscal six months 2017.

 

Non-GAAP basic and diluted income per ADS attributable to common shareholders were US$0.33 and US$0.32, respectively, compared to basic and diluted income per ADS attributable to common shareholders of US$0.35 and US$0.34, respectively, in the first fiscal six months 2017.

 

Cash and Cash Equivalents

 

As of September 30, 2018, the Company’s cash and cash equivalents and restricted cash totaled US$38.3 million, as compared to US$46.4 million as of June 30, 2018.

 

5


 

STATEMENT REGARDING UNAUDITED FINANCIAL INFORMATION

 

The unaudited financial information set forth above is subject to adjustments that may be identified when audit work is performed on the Company’s year-end financial statements, which could result in significant differences from this unaudited financial information.

 

NON-GAAP FINANCIAL MEASURES

 

To supplement our consolidated financial statements which are presented in accordance with U.S. GAAP, we also use non-GAAP operating income, non-GAAP net income and non-GAAP EBITDA as additional non-GAAP financial measures. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance. We also believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our consolidated results of operations in the same manner as our management and in comparing financial results across accounting periods and to those of our peer companies.

 

Reconciliation of non-GAAP operating income, non-GAAP net income and non-GAAP EBITDA to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP is set forth at the end of this release.

 

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 six months ended September 30, 2018, iKang served a total of 3.79 million customer visits under both corporate and individual programs.

 

As of December 20, 2018, iKang has a nationwide network of 119 self-owned operating medical centers, covering 35 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, Zhenjiang, Guyuan and Liupanshui, 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,

 

September 30,

 

 

 

2018

 

2018

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

62,901

 

$

38,276

 

Accounts receivable, net of allowance for doubtful accounts of $23,142 and $24,396 as of March 31, 2018 and September 30, 2018, respectively

 

149,259

 

219,649

 

Inventories

 

9,261

 

9,506

 

Amount due from related parties

 

7,019

 

6,552

 

Prepaid expenses and other current assets

 

66,939

 

79,180

 

Total current assets

 

$

295,379

 

$

353,163

 

Property and equipment, net

 

$

173,283

 

$

161,712

 

Acquired intangible assets, net

 

21,993

 

17,611

 

Goodwill

 

117,995

 

108,792

 

Long-term investments

 

196,816

 

180,473

 

Deferred tax assets-non-current

 

39,380

 

48,826

 

Rental deposit and other non-current assets

 

20,309

 

22,976

 

TOTAL ASSETS

 

$

865,155

 

$

893,553

 

LIABILITIES, MEZZANINE AND EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable (including accounts payable of the consolidated VIEs without recourse to iKang Healthcare Group, Inc. of $43,840 and $ 49,476 as of March 31, 2018 and September 30, 2018, respectively)

 

$

52,800

 

$

59,219

 

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 $60,281 and $64,257, as of March 31, 2018 and September 30, 2018, respectively)

 

76,586

 

79,904

 

Income tax payable (including income tax payable of the consolidated VIEs without recourse to iKang Healthcare Group, Inc. of $13,523 and $21,139 as of March 31, 2018 and September 30, 2018, respectively)

 

15,579

 

24,038

 

Deferred revenues (including deferred revenues of the consolidated VIEs without recourse to iKang Healthcare Group, Inc. of $87,388 and $97,023 as of March 31, 2018 and September 30, 2018, respectively)

 

95,422

 

103,447

 

Amounts due to related parties (including amounts due to related parties of the consolidated VIEs and VIEs’ subsidiaries without recourse to iKang Healthcare Group, Inc. of $3,480 and $3,668 as of March 31, 2018 and September 30, 2018, respectively)

 

3,692

 

3,819

 

Short term borrowings (including short term borrowings of the consolidated VIEs without recourse to iKang Healthcare Group, Inc. of $196,450 and $186,824 as of March 31, 2018 and September 30, 2018, respectively)

 

196,450

 

186,824

 

Total current liabilities

 

$

440,529

 

$

457,251

 

 

8


 

IKANG HEALTHCARE GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS - continued

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

(Unaudited)

 

 

 

As of

 

As of

 

 

 

March 31,

 

September 30,

 

 

 

2018

 

2018

 

 

 

 

 

 

 

Deferred revenues-non-current

 

 

172

 

Long-term borrowings (including long term borrowings of the consolidated VIEs and VIEs’ subsidiaries without recourse to iKang Healthcare Group, Inc. of $38,884 and $40,769 as of March 31, 2018 and September 30, 2018, respectively)

 

38,884

 

45,989

 

Deferred tax liabilities-non-current (including deferred tax liabilities non-current of the consolidated VIEs without recourse to iKang Healthcare Group, Inc. of $4,944 and $3,811 as of March 31, 2018 and September 30, 2018, respectively)

 

5,917

 

4,607

 

TOTAL LIABILITIES

 

$

485,330

 

$

508,019

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Total iKang Healthcare Group, Inc. shareholders’ equity

 

355,707

 

362,101

 

Non-controlling interests

 

24,118

 

23,433

 

TOTAL EQUITY

 

$

379,825

 

$

385,534

 

TOTAL LIABILITIES AND EQUITY

 

$

865,155

 

$

893,553

 

 

9


 

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

 

Six-month periods

 

 

 

ended September 30

 

ended September 30

 

 

 

2017

 

2018

 

2017

 

2018

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

152,417

 

$

177,691

 

$

268,016

 

$

327,928

 

Cost of revenues

 

81,743

 

95,985

 

148,979

 

186,111

 

Gross profit

 

$

70,674

 

$

81,706

 

$

119,037

 

$

141,817

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

$

19,663

 

$

26,848

 

$

38,922

 

$

51,171

 

General and administrative expenses

 

17,813

 

25,726

 

37,302

 

46,765

 

Research and development expenses

 

760

 

912

 

1,466

 

1,694

 

Total operating expenses

 

$

38,236

 

$

53,486

 

$

77,690

 

$

99,630

 

Income from operations

 

$

32,438

 

$

28,220

 

$

41,347

 

$

42,187

 

Interest expense

 

3,166

 

4,817

 

6,255

 

9,577

 

Interest income

 

96

 

71

 

241

 

154

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expenses and loss from equity method investments

 

$

29,368

 

$

23,474

 

$

35,333

 

$

32,764

 

Income tax expenses

 

7,372

 

5,952

 

8,922

 

8,285

 

Loss from equity method investments

 

(1,555

)

(969

)

(2,425

)

(1,609

)

Net income

 

$

20,441

 

$

16,553

 

$

23,986

 

$

22,870

 

Less: Net income attributable to non-controlling interest

 

963

 

433

 

932

 

493

 

Net income attributable to iKang Healthcare Group, Inc.

 

$

19,478

 

$

16,120

 

$

23,054

 

$

22,377

 

 

 

 

 

 

 

 

 

 

 

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

 

$

19,478

 

$

16,120

 

$

23,054

 

$

22,377

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

$

0.57

 

$

0.46

 

$

0.67

 

$

0.64

 

Diluted

 

$

0.56

 

$

0.45

 

$

0.67

 

$

0.63

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

$

0.28

 

$

0.23

 

$

0.34

 

$

0.32

 

Diluted

 

$

0.28

 

$

0.22

 

$

0.33

 

$

0.31

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in calculating net income per common share

 

 

 

 

 

 

 

 

 

Basic

 

34,254,031

 

35,113,172

 

34,242,528

 

34,809,743

 

Diluted

 

34,654,980

 

36,049,669

 

34,643,077

 

35,742,277

 

 

10


 

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

 

Six-month periods

 

 

 

ended September 30

 

ended September 30

 

 

 

2017

 

2018

 

2017

 

2018

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

32,438

 

$

28,220

 

$

41,347

 

$

42,187

 

Add:

 

 

 

 

 

 

 

 

 

Share-based compensation expenses

 

389

 

234

 

773

 

526

 

Non-GAAP operating income

 

$

32,827

 

$

28,454

 

$

42,120

 

$

42,713

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to iKang Healthcare Group, Inc.

 

$

19,478

 

$

16,120

 

$

23,054

 

$

22,377

 

Add:

 

 

 

 

 

 

 

 

 

Share-based compensation expenses

 

389

 

234

 

773

 

526

 

Non-GAAP net income

 

$

19,867

 

$

16,354

 

$

23,827

 

$

22,903

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

32,438

 

$

28,220

 

$

41,347

 

$

42,187

 

Add:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

10,372

 

10,349

 

20,580

 

21,674

 

Share-based compensation expenses

 

389

 

234

 

773

 

526

 

Non-GAAP EBITDA

 

$

43,199

 

$

38,803

 

$

62,700

 

$

64,387

 

 

 

 

 

 

 

 

 

 

 

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

 

$

19,867

 

$

16,354

 

$

23,827

 

$

22,903

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

$

0.58

 

$

0.47

 

$

0.70

 

$

0.66

 

Diluted

 

$

0.57

 

$

0.45

 

$

0.69

 

$

0.64

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

$

0.29

 

$

0.23

 

$

0.35

 

$

0.33

 

Diluted

 

$

0.29

 

$

0.23

 

$

0.34

 

$

0.32

 

 

11



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