Puxin Limited (NYSE:NEW) Q2 2019 Earnings Conference Call Transcript
Aug 13, 2019 • 08:00 am ET
due to increase in selling and marketing staff compensation.
G&A expenses were RMB227.1 million, an increase 91.2% from the same period last year. Non-GAAP G&A expenses, which exclude share-based compensation expenses, were RMB118.2 million, an increase of 13.3% from the second quarter of 2018. The increase was primarily due to increase in stock compensation.
Total share-based compensation expenses allocated to related operating costs and expenses were RMB115.4 million, an increase of 360.4% from the same period of 2018. The increase was primarily due to new grants for options to employees in the first quarter of 2019. Operating loss was RMB168.7 million, an increase of 96.1% from the second quarter of 2018. Operating margin was 26.7% compared with negative 16.2% for the same period in 2018.
Non-GAAP operating loss was RMB53.3 million compared with RMB61 million in the second quarter of 2018. Non-GAAP operating margin was negative 8.4% compared with negative 11.5% in the same period of the prior year. Net loss attributable to Puxin Limited was RMB194.6 million, an increase of 3.3% from the second quarter of 2018. Basic and diluted net loss per ADS attributable to Puxin Limited were RMB2.28 compared with RMB2.88 during the same period of 2018. Non-GAAP net most attributable to Puxin Limited was RMB60.7 million compared with RMB17.9 million during the same period of 2018. Non-GAAP basic and diluted net loss per ADS attributable to Puxin Limited was RMB0.71 compared with RMB1.09 during the same period of 2018.
EBITDA was negative RMB159.8 million compared with negative RMB156.2 million in the second quarter of 2018. EBITDA margin was negative 25.2% compared with negative 29.5% for the same period in 2018. Non-GAAP was negative RMB25.8 million compared with negative RMB38.7 million in the second quarter of 2018. Non-GAAP EBITDA was negative 4.1% compared with negative 7.3% during the same period last year.
Next, we'll move on to the balance sheet. As of June 30, 2019, we had a total cash and cash equivalents of RMB500.6 million compared with RMB778 million as of December 31, 2018.
Finally, for guidance, for the third quarter of 2019, we expect net revenues to be between RMB937.5 million to RMB971 million ---and RMB971 million, which represents an increase of 40% to 45% year-over-year. This forecast reflects the Company's current and preliminary views on the markets and operational conditions, which are subject to change.
This concludes our prepared remarks. I now turn the call over to the operator and open the call up for Q&A. Operator, we are ready to take questions.