Is Market views Favorable For financing? Ambow Education Holding Ltd (NYSE: AMBO)

On Tuesday, Ambow Education Holding Ltd (NYSE: AMBO) remained among the day losers and traded with change of -1.43% on volume of 21,728 shares in the last session as compared to average volume of 284274 shares. During last trade its minimum price was $2 and it gained highest price of $2.18. AMBO has total market capitalization of $42.43M. Its closing value stands at $2.07.

Ambow Education Holding Ltd. (AMBO) recently reported its unaudited financial and operating results for the three-month period ended March 31, 2020.

First Quarter 2020 Financial Highlights

Net revenues for the first quarter of 2020 reduced by 28.2% to US$12.7M from US$17.7M in the same period of 2019. The decrease was primarily Because of fewer services provided at the Company’s K-12 schools and tutoring centers as operations during the quarter were temporarily suspended Because of the outbreak of COVID-19, partially offset by revenue from NewSchool, purchased in the period.

Gross profit for the first quarter of 2020 reduced by 72.4% to US$1.6M from US$5.8M in the same period of 2019. Gross profit margin was 12.6%, contrast with 32.8% for the first quarter of 2019. The decrease in gross profit and margin was mainly attributable to the decrease of net revenues.

Operating expenses for the first quarter of 2020 reduced by 19.1% to US$7.2M from US$8.9M for the same period of 2019. The decrease was primarily attributable to less expenditures Because of the temporary suspension of operations at schools and tutoring centers in the period as part of the national pandemic containment effort, and stringent expense controls to improve operating efficiency.

Net income attributable to ordinary shareholders in the first quarter of 2020 was US$0.8M, or US$0.02 per basic and diluted share, contrast with a net loss of US$3.5M, or US$0.08 per basic and diluted share, for the first quarter of 2019.

As of March 31, 2020, Ambow maintained strong cash resources of US$30.4M, comprised of cash and cash equivalents of US$14.2M and short-term investments of US$16.2M.

As of March 31, 2020, the Company’s deferred revenue balance was US$23.9M, representing a slight increase contrast with US$23.7M as of December 31, 2019.Because of the temporary suspension of school operations to contain COVID-19, the Company postponed tuition and fee collection in its K-12 schools during the first quarter which led to the lower-than-usual increase in deferred revenue.

The price moved ahead of 6.58% from the mean of 20 days, 2.25% from mean of 50 days SMA and performed 4.96% from mean of 200 days price. Company’s performance for the week was -0.96%, – 8.41% for month and YTD performance remained 4.55%.

Leave a Reply

Your email address will not be published. Required fields are marked *