Country Style Cooking Restaurant Chain Reports Fourth Quarter and Fiscal Year 2012 Financial Results

Country Style Cooking Restaurant Chain Reports Fourth Quarter and Fiscal Year
                            2012 Financial Results

4Q12 Revenues up 8.9% YoY to RMB296.5 Million

4Q12 Net Income up to RMB6.6 Million

4Q12 Adjusted Net Income (non-GAAP) up to RMB9.9 Million

PR Newswire

CHONGQING, China, March 6, 2013

CHONGQING, China, March 6, 2013 /PRNewswire/ -- Country Style Cooking
Restaurant Chain Co., Ltd. (NYSE: CCSC) ("Country Style Cooking" "CSC" or the
"Company"), a fast-growing quick service restaurant chain in China, today
announced its unaudited financial results for the fourth quarter and fiscal
year 2012.

Fourth Quarter 2012 Financial Highlights

  oRevenues in the fourth quarter of 2012 were RMB296.5 million ($47.6
    million), an increase of 8.9% from RMB272.4 million in the same quarter of
    2011.
  oComparable restaurant sales decreased by 4.9% from the same quarter of
    2011. There were 166 restaurants in the comparison.
  oRestaurant level operating margin was 14.9%, an increase of 840 basis
    points from the same quarter of 2011.
  oNet income for the fourth quarter of 2012 was RMB6.6 million ($1.1
    million), compared to net loss of RMB18.9 million in the same quarter of
    2011. Adjusted net income (non-GAAP), which excludes share-based
    compensation expenses, was RMB9.9 million ($1.6 million), compared to
    adjusted net loss of RMB13.7 million in the same quarter of 2011.
  oDiluted net income per American depositary share ("ADS") was RMB0.25
    ($0.04). Adjusted diluted net income per ADS (non-GAAP), which excludes
    share-based compensation expenses, was RMB0.38 ($0.06). Each ADS
    represents four ordinary shares of the Company.
  oTotal number of restaurants increased by a net of 18 in the fourth quarter
    of 2012 to 256 restaurants as of December 31, 2012, covering 30 cities and
    up from 199 restaurants as of December 31, 2011.

Fiscal Year 2012 Financial Highlights

  oRevenues in 2012 were RMB1.19 billion ($190.8 million), an increase of
    16.6% from RMB1.02 billion in 2011.
  oComparable restaurant sales decreased by 3.7% from 2011. There were 118
    restaurants in the comparison.
  oRestaurant level operating margin was 15.6%, an increase of 110 basis
    points from 2011.
  oNet income in 2012 was RMB75.6 million ($12.1 million), compared to net
    loss of RMB7.0 million in 2011. Adjusted net income (non-GAAP), which
    excludes share-based compensation expenses and one-time tax
    levy/(benefit), was RMB65.6 million ($10.5 million), compared to adjusted
    net income of RMB26.6 million in 2011.
  oBasic and diluted net income per ADS was RMB2.91 ($0.47) and RMB2.88
    ($0.46), respectively. Adjusted diluted net income per ADS (non-GAAP),
    which excludes share-based compensation expenses and one-time tax
    levy/(benefit), was RMB2.50 ($0.40). Each ADS represents four ordinary
    shares of the Company.

Ms. Hong Li, chairman and chief executive officer of Country Style Cooking,
commented, "We are pleased to end 2012 with steady revenue growth and an
expanded network of 256 restaurants. During the year we sought out and
delivered on effective ways to strengthen our financial performance in the
face of declining same store sales and an inflationary environment. These
measures include introducing the Mr. Rice line of canteen-style restaurants
and focusing on lowering our overall operating expenses and improving
restaurant-level profitability. We are now seeing gradual improvement with
same store sales ("SSS") measures and feel we are better positioned for
balanced growth going forward. Looking to 2013, we plan to open around 60 new
restaurants and expect continuous top line growth for the full year."

Mr. Adam Zhao, chief financial officer of Country Style Cooking, added, "As
Ms. Li has touched upon regarding our financial performance, in 2012, in the
area of financial management we focused on cost controls and improvements in
operational efficiency. The effectiveness of these policies has been further
augmented by cost-effective brand expansion which we have achieved through
novel ways to grow brand visibility and market presence through less expensive
means, such as developing online and mobile device applications, other IT
improvements, and gradually rolling out our new line of Mr. Rice restaurants
which operate at lower cost than typical CSC restaurants. While overall SSS
growth was negative, our multifaceted approach has been bearing results and we
have started to see quarter-over-quarter improvement. We expect an overall
upward trajectory with SSS in 2013."

Fourth Quarter 2012 Financial Performances

Revenues in the fourth quarter of 2012 increased by 8.9% to RMB296.5 million
($47.6 million) from RMB272.4 million in the same quarter of 2011. Revenue
growth was primarily supported by the Company's expanding restaurant network.
During the fourth quarter of 2012, Country Style Cooking added a net of 18
restaurants, bringing the total restaurant count to 256 as of December 31,
2012, compared to its total restaurant count of 199 as of December 31, 2011.
Comparable restaurant sales decreased by 4.9% compared with the same quarter
of 2011. There were 166 restaurants in the comparison.

Costs of food and paper decreased by 1.5% to RMB135.4 million ($21.7 million)
in the fourth quarter of 2012 from RMB137.4 million in the same quarter of
2011, primarily as a result of less sales volume due to less extensive
promotional activities compared with the same quarter of 2011. As a percentage
of revenues, cost of food and paper decreased to 45.7% in the fourth quarter
of 2012 from 50.4% in the same quarter of 2011. Since the first quarter of
2012, restaurant staff catering and welfare expenses have been reclassified
from food and paper and other restaurant operating expense to the category of
restaurant wages and related expenses. Prior period numbers have been
reclassified accordingly to conform with the current means of data
presentation. For details, please refer to note 1 in the Company's Condensed
Consolidated Statements of Income included below.

Restaurant wages and related expenses decreased by 0.4% to RMB55.4 million
($8.9 million) in the fourth quarter of 2012 from RMB55.6 million in the same
quarter of 2011. The decrease was primarily due to decrease in accrued annual
bonus and decrease in share based compensation to restaurant staff, which was
offset by increased wage levels and the Company's overall expansion of its
employee base. As a percentage of revenues, restaurant wages and related
expenses decreased to 18.7% in the fourth quarter of 2012 from 20.4% in the
same quarter of 2011.

Restaurant rent expenses increased by 13.6% to RMB31.6 million ($5.1 million)
in the fourth quarter of 2012 from RMB27.8 million in the same quarter of
2011. The increase was primarily due to the expansion of the Company's
restaurant network. As a percentage of revenues, restaurant rental expenses
increased slightly to 10.7% in the fourth quarter of 2012 from 10.2% in the
fourth quarter of 2011.

Restaurant utility expenses decreased by 8.7% to RMB16.9 million ($2.7
million) in the fourth quarter of 2012 from RMB18.5 million in the same
quarter of 2011. As a percentage of revenues, restaurant utility expenses were
5.7% in the fourth quarter of 2012, down from 6.8% in the fourth quarter of
2011. The decrease was primarily due to effective cost control.

Other restaurant operating expenses decreased by 17.2% to RMB12.8 million
($2.1 million) in the fourth quarter of 2012 from RMB15.5 million in the same
quarter of 2011. As a percentage of revenues, other restaurant operating
expenses decreased to 4.3% in the fourth quarter of 2012 from 5.7% in the
fourth quarter of 2011.

Restaurant-level operating margin was 14.9% in the fourth quarter of 2012, an
increase of 840 basis points over the same quarter of 2011. The increase was
primarily due to effective cost control measures and less extensive
promotional activities.

Selling, general and administrative (SG&A) expenses decreased by 10.5% to
RMB20.1 million ($3.2 million) in the fourth quarter of 2012 from RMB22.4
million in the same quarter of 2011, reflecting a combination of offsetting
factors including expanded restaurant network, increased spending on
administrative staff cost, decreased share-based compensation expenses and
effective cost control measures. Share-based compensation expenses included in
SG&A was RMB2.3 million ($0.4 million) in the fourth quarter of 2012, compared
to RMB4.0 million in the fourth quarter of 2011. As a percentage of revenues,
SG&A expenses were 6.8% in the fourth quarter of 2012, down from 8.2% in the
fourth quarter of 2011.

Pre-opening expense for the fourth quarter of 2012 was RMB4.0 million ($0.6
million), representing a decrease of 33.6% as compared to RMB6.0 million in
the same quarter of 2011, primarily because of more prudent expenditures for
new restaurant openings and tighter cost controls in the fourth quarter of
2012. As a percentage of revenues, pre-opening expense decreased to 1.3% in
the fourth quarter of 2012 from 2.2% in the same quarter of 2011.

Depreciation expense for the fourth quarter of 2012 was RMB16.0 million ($2.6
million), representing an increase of 32.5% as compared to RMB12.1 million in
the same quarter of 2011, primarily because of the increase in total fixed
assets as a result of restaurant network expansion. As a percentage of
revenues, depreciation expense increased to 5.4% in the fourth quarter of 2012
from 4.4% in the same quarter of 2011.

Fixed assets impairment charges were RMB5.8 million ($0.9 million) in the
fourth quarter of 2012, representing costs related to asset impairment with
eleven underperforming restaurants, two of which the Company plans to close in
the first quarter of 2013.

Goodwill impairment charges were RMB0.5 million ($0.07 million) in the fourth
quarter of 2012, representing decrease in carrying value of the goodwill
associated with two restaurants, one of which the Company plans to close in
the first quarter of 2013.

Loss from operations for the fourth quarter of 2012 was RMB1.9 million ($0.3
million), compared to a loss of RMB24.0 million in the same quarter of 2011.

Interest income for the fourth quarter of 2012 was RMB6.5 million ($1.0
million), representing an increase of 20.6% as compared to RMB5.4 million in
the same quarter of 2011.

Foreign currency exchange loss for the fourth quarter of 2012 was RMB1.0
million ($159,000), as compared to a loss of RMB1.1 million in the same
quarter of 2011.

Other income for the fourth quarter of 2012 was RMB7.2 million ($1.2 million)
mainly representing government subsidies received, as compared to RMB0.4
million in the same quarter of 2011.

Income tax expense in the fourth quarter of 2012 was RMB4.1 million ($0.7
million), compared to a gain of RMB0.3 million in the same quarter of 2011.

Net income was RMB6.6 million ($1.1 million), compared to a loss of RMB18.9
million in the fourth quarter of 2011. Adjusted net income (non-GAAP), which
excludes share-based compensation expenses, was RMB9.9 million ($1.6 million)
in the fourth quarter of 2012, compared to adjusted net loss of RMB13.7
million in the fourth quarter of 2011.

Diluted net income per ADS in the fourth quarter of 2012 was RMB0.25 ($0.04),
compared to diluted net loss per ADS of RMB0.73 in the fourth quarter of 2011.
Adjusted diluted net income per ADS (non-GAAP), which excludes share-based
compensation expenses, was RMB0.38 ($0.06) in the fourth quarter of 2012,
compared to adjusted diluted net loss per ADS (non-GAAP) of RMB0.53 in the
fourth quarter of 2011. The Company had approximately 26.3 million weighted
average diluted ADSs outstanding during the quarter ended December 31, 2012.

EBITDA (non-GAAP), defined as net income before interest, income tax
(benefit)/expense, depreciation and amortization, was RMB20.3 million ($3.3
million) in the fourth quarter of 2012, compared to a loss of RMB12.5 million
from the same quarter of 2011. Adjusted EBITDA (non-GAAP), defined as EBITDA
excluding foreign exchange loss, other income, impairment charges, goodwill
impairment and share-based compensation expenses, was RMB23.7 million ($3.8
million) in the fourth quarter of 2012, compared to a loss of RMB5.6 million
in the same quarter of 2011.

As of December 31, 2012, the Company had cash, cash equivalents and short-term
investments of RMB550.1 million ($88.3 million), compared to RMB517.5 million
as of December 31, 2011.

Net cash provided by operating activities was RMB173.7 million ($27.9 million)
for the twelve months ended December 31, 2012, up from RMB62.6 million in the
same period of 2011.

Outlook

For the full year 2013, the Company plans to open approximately 60 new
restaurants. For the first quarter of 2013, the Company currently estimates
that revenues will be between RMB303 million ($48.6 million) and RMB313
million ($50.2 million), representing a year-over-year growth of between
approximately 6.1% and 9.6%.

These forecasts reflect the Company's current and preliminary view, which are
subject to change.

Definitions

The following definitions apply to these terms used throughout this release:

Comparable restaurants are defined as restaurants that were open throughout
the periods under comparison. A restaurant is included in the comparison once
it has been in operation for 12 full months before the start of the quarter.
Comparable restaurants exclude (i) restaurants whose operational area has
increased or decreased by more than 5% during the periods under comparison
(ii) restaurants that were closed for more than 5% of total days in any period
under comparison and (iii) restaurants that were operated under different
business style in the comparison period.

Restaurant level operating margin represents total revenue less restaurant
operating costs (including food and paper, restaurant wages and related
expenses, restaurant rent expenses, restaurant utilities expenses and other
restaurant operating expenses), expressed as a percentage of total revenues.

Exchange Rate

This announcement contains translations of certain Renminbi amounts into US
dollars at specified rates solely for the convenience of readers. Unless
otherwise noted, all translations from Renminbi to US dollars in this
announcement were made at the noon buying rate of RMB6.2301 to US$1.00 on
December 31, 2012 in the City of New York for cable transfers in Renminbi per
U.S. dollar as certified for customs purposes by the Federal Reserve Bank of
New York.

Conference Call

The Company will host a conference call at 7:30 pm, Eastern Time on March 6,
2013, which is 8:30 am, Beijing Time on March 7, 2013, to discuss fourth
quarter and fiscal year 2012 results and answer questions from investors.
Listeners may access the call by dialing:

US:                    +1-866-519-4004
International:         +65-6723-9381
Hong Kong:            +800-930-346
China Domestic:       +800-819-0121
China Domestic Mobile: +400-620-8038
Passcode:              98302093

A live and archived webcast of the conference call will be available at
http://ir.csc100.com.

About Country Style Cooking Restaurant Chain Co., Ltd.

Country Style Cooking Restaurant Chain Co., Ltd. (NYSE: CCSC) ("Country Style
Cooking") is a fast-growing quick service restaurant chain in China, offering
delicious, everyday Chinese food to customers who desire fast and affordable
quality meals. Country Style Cooking directly operates all of its restaurants
and is the largest quick service restaurant chain in Chongqing municipality,
home to Sichuan cuisine, one of the best-known Chinese regional cuisines.
Additional information about Country Style Cooking can be found at
http://ir.csc100.com.

Contact:

Country Style Cooking Restaurant Chain Co., Ltd.

Adam Zhao
Chief Financial Officer
Phone: +86-23-8866-8866
Email: ir@csc100.com

ICR Inc.

Rob Koepp
Phone: +86-10-6583-7516 or +1-646-328-2520
E-mail: robert.koepp@icrinc.com

Non-GAAP Disclosure

To supplement the unaudited consolidated financial information presented in
accordance with United States Generally Accepted Accounting Principles
("GAAP"), the Company uses the following measures defined as non-GAAP measures
under Regulation G and Item 10(e) of Regulation S-K of SEC: adjusted net
income, adjusted diluted earnings per ADS, EBITDA and adjusted EBITDA. The
presentation of these non-GAAP financial measures is not intended to be
considered in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP. We define adjusted net income
as net income excluding share-based compensation expenses and one-time tax
levy/(benefit). We define adjusted diluted earnings per ADS as diluted
earnings per ADS excluding share-based compensation expenses and one-time tax
levy/(benefit). We define EBITDA as earnings before interest, income tax
expense, depreciation and amortization. We define adjusted EBITDA as EBITDA
excluding foreign exchange gain or loss, other income or expense, fixed assets
impairment charges, goodwill impairment and share-based compensation expenses.
For more information on these non-GAAP financial measures, please see the
tables captioned "Supplementary Metrics -- Reconciliations of GAAP to Non-GAAP
Financial Measures" set forth at the end of this release.

The Company believes that in conjunction with GAAP financial measures, these
non-GAAP financial measures provide meaningful supplemental information
regarding its operating performance and liquidity. The Company believes that
both management and investors benefit from referring to these non-GAAP
financial measures in assessing its performance and when planning and
forecasting future periods. These non-GAAP financial measures also facilitate
management's internal comparisons to the Company's historical performance and
liquidity. Management uses both GAAP and non-GAAP information in evaluating
and operating the business internally and therefore deems it important to
provide all of these information to investors. Management also believes that
these non-GAAP financial measures facilitate comparisons to the Company's
historical performance.

One of the limitations of using adjusted net income, adjusted diluted earnings
per ADS, EBITDA and adjusted EBITDA is that they do not include all items that
impact the Company's net income for the relevant periods. A limitation of
using these non-GAAP measures is that they exclude certain items including
share-based compensation charges that have been and will continue to be for
the foreseeable future a significant recurring expense in our business. In
addition, the Company's EBITDA and adjusted EBITDA may not be comparable to
EBITDA, adjusted EBITDA or similarly titled measures utilized by other
companies since such other companies may not calculate EBITDA and adjusted
EBITDA in the same manner as the Company does. Management compensates for
these limitations by providing specific information regarding the GAAP amounts
excluded from each non-GAAP measure. The accompanying tables have more details
on the reconciliations between GAAP financial measures that are most directly
comparable to non-GAAP financial measures.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements 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," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements. Among
other things, the outlook for the first quarter 2013, quotations from
management in this announcement, as well as Country Style Cooking's strategic
and operational plans, contain forward-looking statements. The Company may
also make written or oral forward-looking statements in its reports filed
with, or furnished to, the U.S. Securities and Exchange Commission, in its
annual reports to shareholders, in press releases and other written materials
and in oral statements made by its officers, directors or employees to third
parties. Statements that are not historical facts, including statements about
the Company's beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. A number
of factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not limited to the
following: uncertainties regarding our ability to open and profitably operate
new restaurants and manage our growth effectively and efficiently; risks
associated with changing consumer taste and discretionary spending;
uncertainties regarding our ability to maintain and enhance the attractiveness
of our restaurants and our brand and image; risks related to instances of
food-borne illnesses, health epidemics and other outbreaks; uncertainties
regarding our ability to respond to competitive pressures; and uncertainties
associated with factors typically affecting the consumer food services
industry in general. Further information regarding these and other risks is
included in the Company's reports filed with, or furnished to the Securities
and Exchange Commission. All information provided in this press release and in
the attachments is as of the date of this press release, and Country Style
Cooking undertakes no duty to update such information, except as required
under applicable law.



Condensed Consolidated Balance Sheets
(Amounts in thousands, except shares data)
(Unaudited)
                                            As of December  As of December 31,
                                            31,
                                            2011            2012
                                            RMB             RMB        US$
ASSETS
Current assets:
 Cash and cash equivalents                 327,546         229,367    36,816
 Short-term investments                    190,000         320,727    51,480
 Due from related parties                  100             -          -
 Inventories                               48,442          42,159     6,767
 Prepaid rent                              10,674          13,063     2,097
 Prepaid expenses and other current assets 15,078          21,837     3,506
 Deferred income taxes-current             3,216           2,135      343
Total current assets                        595,056         629,288    101,009
Property and equipment, net                 298,125         368,239    59,106
Goodwill                                    6,019           5,563      893
Deferred income taxes - non current         4,879           4,661      748
Deposits for leases                         16,695          17,968     2,884
Total assets                                920,774         1,025,719  164,640
Current liabilities:
 Accounts payable                          43,702          49,139     7,887
 Deferred revenue                          4,303           3,544      569
 Due to related parties                    -               25         4
 Accrued payroll                           22,764          23,734     3,810
 Income taxes payable                      17,554          7,437      1,194
 Other current liabilities                 34,778          46,217     7,418
Total current liabilities                   123,101         130,096    20,882
Deferred rent - non current                 15,610          22,041     3,538
Prepaid subscription                        391             158        25
Advanced receipts from depositary bank      3,768           3,296      529

Total liabilities                           142,870         155,591    24,974
Equity:
Ordinary shares ($0.001 par value,
1,000,000,000
 shares authorized, 103,844,239 and
 104,404,831 shares issued and            741             745        120
outstanding as of
 December 31, 2011 and December31, 2012,
 respectively)
 Additional paid-in capital               702,995         719,641    115,510
 Retained earnings                        82,432          158,068    25,372
 Accumulated other comprehensive loss     (8,264)         (8,326)    (1,336)
Total equity                                777,904         870,128    139,666
Total liabilities and equity                920,774         1,025,719  164,640







Condensed Consolidated Statements of Income 
(Amounts in thousands, except percentages, shares, per share and per ADS data)

(Unaudited) 
                      For the three months ended December 31,
                      2011                  2012
                      RMB          %        RMB          %        US$
Revenue - restaurant  272,368      100.0    296,500      100.0    47,592
sales
Costs and expenses:
 Restaurant
expenses:
 Food and       137,400      50.4     135,357      45.7     21,726
paper(1)
 Restaurant
wages and related     55,619       20.4     55,395       18.7     8,892
expenses(1)(2)
 Restaurant     27,826       10.2     31,604       10.7     5,073
rent expense
 Restaurant     18,488       6.8      16,877       5.7      2,709
utilities expense
 Other
restaurant operating  15,477       5.7      12,811       4.3      2,056
expenses(1)
 Selling, general
and administrative    22,446       8.2      20,094       6.8      3,225
expenses(2)
 Pre-opening        6,003        2.2      3,986        1.3      640
expense
 Depreciation       12,095       4.4      16,030       5.4      2,573
 Fixed assets       750          0.3      5,831        2.0      936
impairment charges
Goodwill impairment  267          0.1      457          0.2      73
Total operating       296,371      108.7    298,442      100.8    47,903
expenses
Loss from operations  (24,003)     (8.7)    (1,942)      (0.8)    (311)
Interest income       5,382        2.0      6,492        2.2      1,042
Foreign exchange loss (1,089)      (0.4)    (988)        (0.3)    (159)
Other income          449          0.2      7,220        2.4      1,159
Income/(loss) before (19,261)     (6.9)    10,782       3.5      1,731
income taxes
Income tax            (324)        (0.1)    4,140        1.4      665
expense/(benefit)
Net income/(loss)     (18,937)     (6.8)    6,642        2.1      1,066
Basic net
income/(loss) per     (0.18)                0.06                  0.01
share
Diluted net
income/(loss) per     (0.18)                0.06                  0.01
share
Basic net             (0.73)                0.25                  0.04
income/(loss) per ADS
Diluted net           (0.73)                0.25                  0.04
income/(loss) per ADS
Basic weighted
average ordinary      103,826,324           104,333,732           104,333,732
shares
 outstanding
Diluted weighted
average ordinary      103,826,324           105,210,029           105,210,029
shares
 outstanding
(1) Since the first quarter of 2012, restaurant staff catering and welfare
expenses have been reclassified from food and paper and other restaurant
operating expense to the category of restaurant wages and related expenses.
Prior period numbers have been reclassified accordingly to conform with the
current presentation.
(2) Includes share-based compensation expenses of RMB5.3 million and RMB3.3
million ($0.5 million) for the three months ended December 31, 2011 and 2012,
respectively.







Condensed Statements of Consolidated Comprehensive Income
(Amounts in thousands)
(Unaudited)
                                       For the three months ended December 31,
                                       2011              2012
                                       RMB               RMB          US$
Net income/(loss)                      (18,937)          6,642        1,066
Other comprehensive loss, net of tax:
 Foreign currency translation      (122)             (282)        (45)
adjustments
Comprehensive income/(loss)            (19,059)          6,360        1,021









Condensed Consolidated Cash Flow Statements
(Amounts in thousands)
(Unaudited)
                                                Year ended December 31
                                                2011       2012
                                                RMB        RMB        US$
Operating activities:
 Net income/(loss)                            (6,950)    75,636     12,140
 Adjustments to reconcile net income to net
cash
 provided from operating activities:
 Loss on disposals of property and         1,432      4,374      702
equipment
 Fixed assets impairment charges           6,396      13,820     2,218
Goodwill impairment                             267        457        73
 Depreciation                              38,274     59,411     9,536
Deferred income taxes                           (4,572)    1,300      209
 Gain on forward contracts                 734        -          -
 Share based compensation                  15,818     15,700     2,520
 Changes in operating assets and liabilities:
 Due from related parties                  -          100        16
 Inventories                               (23,491)   8,330      1,337
 Prepaid rent                              (4,105)    (2,389)    (383)
 Prepaid expenses and other current assets 1,077      (6,759)    (1,085)
 Deposits for leases                       (6,675)    (1,273)    (204)
 Accounts payable                          9,498      5,437      873
 Deferred revenue                          1,479      (759)      (122)
 Due to related parties                    (560)      25         4
 Accrued payroll                           7,472      970        156
 Income taxes payable                      11,028     (10,117)   (1,624)
 Deferred rent                             7,073      7,114      1,142
 Other current liabilities                 8,391      2,353      378
Net cash provided by operating activities       62,586     173,730    27,886
Investing activities:
 Restaurant and office space capital          (159,081)  (142,355)  (22,850)
expenditures
 Proceeds from disposals of property and      948        542        87
equipment
 Purchase of short-term investment            (290,000)  (320,727)  (51,480)
 Withdraw of short-term investment            100,000    190,000    30,497
Net cash used in investing activities           (348,133)  (272,540)  (43,746)
Financing activities:
 Proceeds from exercise (early exercise) of
employee                                        3,085      693        111
 stock options
 Offering expense                             (891)      -          -
Net cash provided by financing activities:      2,194      693        111
Effect of exchange rate                         (1,684)    (62)       (10)
Net decrease in cash and cash equivalents       (285,037)  (98,179)   (15,759)
Cash and cash equivalents, beginning of year    612,583    327,546    52,575
Cash and cash equivalents, end of year          327,546    229,367    36,816







Supplementary Metrics – Reconciliations of GAAP to Non-GAAP Financial Measures
(Amounts in thousands, except ADSs and per ADS data)
                             Three months ended December 31,
                             2011              2012
                             RMB               RMB               US$
Net income/(loss)            (18,937)          6,642             1,066
Share-based compensation
expenses:
Restaurant wages and related 1,265             958               154
expenses
Selling, general and         4,012             2,337             375
administrative expenses
Adjusted net income/(loss)   (13,660)          9,937             1,595
(non-GAAP)
Diluted net income/(loss)    (0.73)            0.25              0.04
per ADS
Adjusted diluted net
income/(loss) per ADS        (0.53)            0.38              0.06
(non-GAAP)
Diluted weighted average     25,956,581        26,302,507        26,302,507
ADSs outstanding(1)
                             Three months ended December 31,
                             2011              2012
                             RMB               RMB               US$
Net income/(loss)            (18,937)          6,642             1,066
Income tax expense/(benefit) (324)             4,140             665
Interest income              (5,382)           (6,492)           (1,042)
Depreciation and             12,095            16,030            2,573
amortization
EBITDA (Non-GAAP)            (12,548)          20,320            3,262
EBITDA (Non-GAAP)            (12,548)          20,320            3,262
Foreign exchange loss        1,089             988               159
Other income                 (449)             (7,220)           (1,159)
Fixed assets impairment      750               5,831             936
charges
Goodwill impairment          267               457               73
Share-based compensation
expenses
Restaurant wages and related 1,265             958               154
expenses
Selling, general and
administrative               4,012             2,337             375
expenses
Adjusted EBITDA (Non-GAAP)   (5,614)           23,671            3,800
                             Year ended December 31,
                             2011              2012
                             RMB               RMB               US$
Net income/(loss)            (6,950)           75,636            12,140
Share-based compensation
expenses:
Restaurant wages and related 3,351             3,928             630
expenses
Selling, general and         12,467            11,772            1,890
administrative expenses
One-time tax levy/(benefit)  17,769            (25,687)          (4,123)
Adjusted net income          26,637            65,649            10,537
(non-GAAP)
Diluted net income/(loss)    (0.27)            2.88              0.46
per ADS
Adjusted diluted net income  1.01              2.50              0.40
per ADS (non-GAAP)
Diluted weighted average     25,896,004        26,260,103        26,260,103
ADSs outstanding(2)
                             Year ended December 31,
                             2011              2012
                             RMB               RMB               US$
Net income/(loss)            (6,950)           75,636            12,140
Income tax expense           37,895            (6,778)           (1,088)
Interest income              (17,226)          (21,976)          (3,527)
Depreciation and             38,274            59,411            9,536
amortization
EBITDA (Non-GAAP)            51,993            106,293           17,061
EBITDA (Non-GAAP)            51,993            106,293           17,061
Foreign exchange loss        15,466            307               49
Other income                 (9,403)           (19,808)          (3,179)
Fixed assets impairment      6,396             13,820            2,218
charges
Goodwill impairment          267               457               73
Share-based compensation
expenses
Restaurant wages and related 3,355             3,928             630
expenses
Selling, general and         12,463            11,772            1,890
administrative expenses
Adjusted EBITDA (Non-GAAP)   80,537            116,769           18,742


(1) Diluted weighted average ADSs outstanding during the quarter ended
December 31, 2011 excludes the ADSs issuable upon the assumed exercise of
options or vesting of restricted shares amounting to1,864,866, as their effect
would be anti-dilutive.

(2) Non-GAAP adjusted diluted weighted average ADSs outstanding during year
ended December 31, 2011 is 26,477,095 ADS including the weighted average ADSs
of options amounting to 581,091 ADS, which were not included in the
calculation of GAAP diluted net loss per ADS as their effect would be
anti-dilutive.



SOURCE Country Style Cooking Restaurant Chain Co., Ltd.

Website: http://ir.csc100.com
 
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