ATA, Inc. (NASDAQ:ATAI) Q3 2018 Earnings Conference Call Transcript

Nov 08, 2018 • 08:00 pm ET

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ATA, Inc. (NASDAQ:ATAI) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, everyone. Welcome to the ATA Inc. 2018 Third Quarter Financial Results Conference Call. My name is Javin. I will be your event operator for the call today. During the presentation, your lines will remain on listen-only. (Operator Instructions) I would like to advise all parties that conference is being recorded. (Operator Instructions)

And now, I would like to hand over to Adam Prior, from The Equity Group. Please go ahead.

Executive
Adam Prior

Thank you, operator and hello, everyone thank you for joining us. The press release announcing ATA's results for the third quarter ended September 30, 2018, is available at the IR section of the company's website at www.atai.net.cn. As part of this conference call, the company has an accompanying slide presentation available on the company's website. A replay of this broadcast will also be made available at ATA's website for the next 90 days.

(Forward-Looking Cautionary Statements)

All US dollar amounts in this conference call, relating to financial results for the third quarter ended September 30, 2018, are converted from RMB using an exchange rate of RMB6.8680 to US$1, the noon buying rate as of September 30, 2018. All historical conversions are accurate as of the time reported, unless otherwise noted. But the company reports its financial results under US GAAP in RMB, and all percentages calculated in the presentation are based on RMB unless otherwise noted. For those of you following along with the accompanying presentation, there is an overview of the company on Slide 3.

On today's call, the company's CFO, Ms. Amy Tung will provide a brief overview of financial highlights for the third quarter of 2018. ATA's Chairman and CEO, Mr. Kevin Ma and President, Jack Huang will conclude the remarks with a brief discussion on ATA's outlook and long-term growth strategy, as we head into 2019 before opening the floor for any questions.

With that, I'll turn the call over to ATA's CFO, Ms. Amy Tung. Please go ahead, Amy.

Executive
Amy Tung

Thank you, Adam, and welcome everyone. I'll begin on Slide 5, with financial highlights, but first I'd like to note a few important changes in the way we reported our financial statements for the three and nine months ended September 30, 2018. With the closing of the ATA Online transaction in August, the balance sheet items related to the disposed business lines were not consolidated into ATA's September 30, 2018 financial statements.

For the periods presented in this deck and in the related press release, the results of the discontinued operations, less applicable income taxes, pertaining to the time period prior to the disposal date are reported as two separate components of income or loss on the consolidated statements of consolidated income or loss, which are, loss from operations of discontinued operations, net of income taxes, and gain from disposal of discontinued operations, net of income taxes.

Briefly, ATA's total net revenues for the three months ended September 30, 2018, were RMB1.1 million, compared to RMB2.1 million in the prior-year period. Same as the first