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Country Style Cooking Restaurant Chain Reports First Quarter 2013 Financial Results



 Country Style Cooking Restaurant Chain Reports First Quarter 2013 Financial
                                   Results

1Q13 Revenues up 7.7% YoY to RMB307.2 Million

1Q13 Adjusted Net Income up 17.0% YoY to RMB5.9 Million

1Q13 Adjusted EBITDA up 24.7% to RMB 21.6 Million

PR Newswire

CHONGQING, China, May 14, 2013

CHONGQING, China, May 14, 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 first quarter of 2013.

First Quarter 2013 Financial Highlights

  o Revenues in the first quarter of 2013 were RMB307.2 million ($49.5
    million), an increase of 7.7% from RMB285.2 million in the same quarter of
    2012.
  o Comparable restaurant sales decreased by 4.1% from the same quarter of
    2012. There were 177 restaurants in the comparison.
  o Restaurant level operating margin was 12.7%, an increase of 140 basis
    points from the same quarter of 2012.
  o Adjusted EBITDA was RMB21.6 million ($3.5 million) in the first quarter of
    2013, compared to RMB17.3 million in the same quarter of 2012.
  o Net income for the first quarter of 2013 was RMB2.0 million ($0.3
    million), a decrease of 89.1% from RMB18.3 million in the same quarter of
    2012. Adjusted net income (non-GAAP), which excludes share-based
    compensation expenses and the one-time tax benefit in the first quarter of
    2012, was RMB5.9 million ($0.9 million), an increase of 17.0% from RMB5.0
    million in the same quarter of 2012.
  o Diluted net income per American depositary share ("ADS") was RMB0.08
    ($0.01). Adjusted diluted net income per ADS (non-GAAP), which excludes
    share-based compensation expenses, was RMB0.22 ($0.04). Each ADS
    represents four ordinary shares of the Company.
  o Total number of restaurants increased by a net total of six in the first
    quarter of 2013 to 262 restaurants as of March 31, 2013, including 232
    "Country Style Cooking" and 30 "Mr. Rice" branded restaurants, covering 29
    cities and up from 212 restaurants as of March 31, 2012.

Ms. Hong Li, chairman and chief executive officer of Country Style Cooking,
commented, "We are off to an encouraging start in 2013 with steady revenue
growth and an expanded network of 262 restaurants. Our top line growth was in
line with our guidance forecast and our adjusted net income showed improvement
from the same year period in 2012. Comparable restaurant sales were negative
as expected during the first quarter but continue to show signs of
improvement. Comparable restaurant sales turned positive in March and we
believe quarterly comparable restaurant sales will improve in the remaining
three quarters of the year. Our operating margin in the first quarter was
impacted by our decision to close nine non-productive restaurants, but we
expect the exit from these select locations to improve our operating
performance in future quarters. We continue to focus on implementing effective
cost control measures and enhancing our marketing efforts to boost customer
loyalty and brand recognition. We also managed to increase average selling
prices by rolling out different products on our menu and introducing new combo
meals in March, which has upheld our profitability in an inflationary
environment. Maintaining high levels of food quality, product variety and
customer service is critical to sustaining high levels of customer
satisfaction and pricing power. For the remainder of 2013, we reiterate our
plan to open around 60 new restaurants and expect low double digit revenue
growth for the full year."

Mr. Adam Zhao, chief financial officer of Country Style Cooking, added, "We
remain optimistic that our operations are making progress, particularly as we
exit from underperforming store locations. As we conduct frequent and thorough
evaluations of our new restaurants opened from the 2012 second quarter onward,
we expect reduced store closures and significant decreases in our impairment
charges in the second half of 2013. Our new restaurants are opened under more
prudent expenditure schemes and our gradual roll out of 'Mr. Rice' branded
restaurants has reduced the breakeven period for our new restaurant locations.
Overall, we are well positioned to capture customer traffic in the upcoming
busy summer months and achieve balanced growth in the long term."

First Quarter 2013 Financial Performances

Revenues in the first quarter of 2013 increased by 7.7% to RMB307.2 million
($49.5 million) from RMB285.2 million in the same quarter of 2012. Revenue
growth was primarily supported by the Company's expanding restaurant network.
During the first quarter of 2013, Country Style Cooking added a total of ten
restaurants and closed four restaurants, bringing the total restaurant count
to 262 as of March 31, 2013, compared to its total restaurant count of 212 as
of March 31, 2012. Restaurants opened in the first quarter included six
"Country Style Cooking" and four "Mr. Rice" restaurants. Comparable restaurant
sales decreased by 4.1% compared with the same quarter of 2012. There were 177
restaurants in the comparison.

Costs of food and paper increased by 7.6% to RMB144.6 million ($23.3 million)
in the first quarter of 2013 from RMB134.3 million in the same quarter of
2012, primarily due to the expansion of the Company's restaurant network and
increased price level of raw material. As a percentage of revenues, cost of
food and paper was 47.1% in the first quarter of 2013, similar to the prior
year period.

Restaurant wages and related expenses increased by 5.4% to RMB60.9 million
($9.8 million) in the first quarter of 2013 from RMB57.8 million in the same
quarter of 2012. The increase was primarily due to increased wage levels and
the Company's overall expansion of its employee base. As a percentage of
revenues, restaurant wages and related expenses decreased slightly to 19.8% in
the first quarter of 2013 from 20.2% in the same quarter of 2012. ^

Restaurant rent expenses increased by 5.6% to RMB32.4 million ($5.2 million)
in the first quarter of 2013 from RMB30.6 million in the same quarter of 2012.
The increase was primarily due to the expansion of the Company's restaurant
network. As a percentage of revenues, restaurant rental expenses dropped
slightly to 10.5% in the first quarter of 2013 from 10.7% in the first quarter
of 2012.

Restaurant utility expenses decreased by 2.0% to RMB18.3 million ($3.0
million) in the first quarter of 2013 from RMB18.7 million in the same quarter
of 2012. As a percentage of revenues, restaurant utility expenses were 6.0% in
the first quarter of 2013, down from 6.6% in the first quarter of 2012. The
decrease of restaurant utility expenses as a percentage of revenue was
primarily due to effective cost control.

Other restaurant operating expenses increased by 1.4% to RMB11.9 million ($1.9
million) in the first quarter of 2013 from RMB11.7 million in the same quarter
of 2012. As a percentage of revenues, other restaurant operating expenses
decreased to 3.9% in the first quarter of 2013 from 4.1% in the first quarter
of 2012.

Restaurant-level operating margin was 12.7% in the first quarter of 2013, an
increase of 140 basis points over the same quarter of 2012. The improvement in
restaurant-level operating margin was primarily due to effective cost control
measures.

Selling, general and administrative (SG&A) expenses increased by 20.9% to
RMB19.3 million ($3.1 million) in the first quarter of 2013 from RMB16.0
million in the same quarter of 2012. The increase was primarily due to
RMB2.1million of disposal loss on leasehold improvements and equipments of
closed stores, followed by increased administrative staff compensation.
Share-based compensation expenses included in SG&A was RMB2.8 million ($0.5
million) in the first quarter of 2013, compared to RMB3.6 million in the first
quarter of 2012. As a percentage of revenues, SG&A expenses were 6.3% in the
first quarter of 2013, up from 5.6% in the first quarter of 2012.

Pre-opening expense for the first quarter of 2013 was RMB2.1 million ($0.3
million), representing a decrease of 36.4% as compared to RMB3.3 million in
the same quarter of 2012, primarily because of less new store openings
compared to the prior year period and more prudent expenditures in the first
quarter of 2013. As a percentage of revenues, pre-opening expense decreased to
0.7% in the first quarter of 2013 from 1.2% in the same quarter of 2012.

Depreciation expense for the first quarter of 2013 was RMB16.8 million ($2.7
million), representing an increase of 23.7% as compared to RMB13.6 million in
the same quarter of 2012, 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 5.5% in the first quarter of 2013
from 4.8% in the same quarter of 2012.

Property and equipment impairment charges were RMB4.0 million ($0.6 million)
in the first quarter of 2013, representing costs related to asset impairment
with seven underperforming restaurants, five of which the Company plans to
close in the second quarter of 2013.

Loss from operations for the first quarter of 2013 was RMB3.1 million ($0.5
million), compared to a loss of RMB3.3 million in the same quarter of 2012.

Interest income for the first quarter of 2013 was RMB6.1 million ($1.0
million), representing an increase of 16.5% as compared to RMB5.2 million in
the same quarter of 2012.

Foreign currency exchange loss for the first quarter of 2013 was RMB0.4
million ($57,000), as compared to a loss of RMB0.1 million in the same quarter
of 2012.

Other income/(loss) for the first quarter of 2013 was RMB0.1 million
($22,000), compared to a loss of RMB0.7 million in the same quarter of 2012.

Income tax expense in the first quarter of 2013 was RMB0.8 million ($0.1
million), compared to a gain of RMB17.2 million in the same quarter of 2012.
In the first quarter of 2012, the Company was granted a retroactive
preferential change in its tax rate and as a result, the Company reversed its
income tax liability of RMB11.4 million previously accrued in connection with
income tax rate change for 2008 and 2010 and received a refund of RMB6.4
million in income taxes paid for 2009.

Net income was RMB2.0 million ($0.3 million), compared to RMB18.3 million in
the first quarter of 2012. Adjusted net income (non-GAAP), which excludes
share-based compensation expenses and the one-time tax benefit in the first
quarter of 2012, was RMB5.9 million ($0.9 million) in the first quarter of
2013, compared to RMB5.0 million in the first quarter of 2012.

Diluted net income per ADS in the first quarter of 2013 was RMB0.08 ($0.01),
compared to RMB0.69 in the first quarter of 2012. Adjusted diluted net income
per ADS (non-GAAP), which excludes share-based compensation expenses and the
one-time tax benefit in the first quarter of 2012, was RMB0.22 ($0.04) in the
first quarter of 2013, compared to RMB0.19 in the first quarter of 2012. The
Company had approximately 26.4 million diluted weighted average ADSs
outstanding during the quarter ended March 31, 2013.

EBITDA (non-GAAP), defined as net income before interest, income tax
(benefit)/expense, depreciation and amortization,was RMB13.5 million ($2.2
million) in the first quarter of 2013, compared to RMB9.4 million from the
same quarter of 2012. Adjusted EBITDA (non-GAAP), defined as EBITDA excluding
foreign exchange loss, other income/(loss), property and equipment impairment
charges, and share-based compensation expenses, was RMB21.6 million ($3.5
million) in the first quarter of 2013, compared to RMB17.3 million in the same
quarter of 2012.

As of March 31, 2013, the Company had cash, cash equivalents and short-term
investments of RMB559.9 million ($90.1 million), compared to RMB550.1 million
as of December 31, 2012.

Net cash provided by operating activities was RMB28.3 million ($4.6 million)
for the three months ended March 31, 2013, up from RMB27.3 million in the same
period of 2012.

Outlook

For the second quarter of 2013, the Company currently estimates that revenues
will be between 307 million ($49.3 million) and RMB317 million ($51.0
million), representing a year-over-year growth of between approximately 9.6%
and 13.2%.

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.

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 RMB6.2108 to US$1.00 on
March 31, 2013 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 8:30 pm, Eastern Time on May 14,
2013, which is 8:30 am, Beijing Time on May 15, 2013, to discuss first quarter
2013 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:               61123866

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.
Bill Zima
Phone: +86-10-6583-7511 or +1-646-328-2520
E-mail: bill.zima@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, property and
equipment 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. 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 second 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 31,  As of March 31,
                                        2012                2013
                                        RMB                 RMB        US$
ASSETS
Current assets:
  Cash and cash equivalents             229,367             209,880    33,793
  Short-term investments                320,727             349,992    56,352
  Due from related parties              -                   464        75
  Inventories                           42,159              43,366     6,982
  Prepaid rent                          13,063              11,974     1,928
  Prepaid expenses and other current    21,837              18,645     3,002
assets
  Deferred tax assets-current           771                 771        124
Total current assets                    627,924             635,092    102,256
Property and equipment, net             368,239             364,955    58,761
Goodwill                                5,563               5,563      896
Deferred tax assets - non current       6,025               6,025      970
Deposits for leases                     17,968              18,664     3,005
Total assets                            1,025,719           1,030,299  165,888
Current liabilities:
  Accounts payable                      49,139              45,499     7,326
  Deferred revenue                      3,544               8,046      1,295
  Due to related parties                25                  18         3
  Accrued payroll                       23,734              21,228     3,418
  Income taxes payable                  7,437               3,476      560
  Other current liabilities             46,627              48,603     7,825
Total current liabilities               130,506             126,870    20,427
Deferred rent - non current             21,631              23,917     3,851
Prepaid subscription                    158                 120        19
Advanced receipts from depositary bank  3,296               3,181      512
Total liabilities                       155,591             154,088    24,809
Equity:
Ordinary shares ($0.001 par value,
1,000,000,000

   shares authorized, 104,404,831 and

   104,577,506 shares issued and        745                 746        120
outstanding as of

   December 31, 2012 and March 31,
2013,

   respectively)
   Additional paid-in capital           719,641             723,811    116,541
   Retained earnings                    158,068             160,063    25,772
   Accumulated other comprehensive loss (8,326)             (8,409)    (1,354)
Total equity                            870,128             876,211    141,079
Total liabilities and equity            1,025,719           1,030,299  165,888

 

Condensed Consolidated Statements of Income
(Amounts in thousands, except percentages, shares, per share and per ADS data)
(Unaudited)
                      For the three months ended March 31,
                      2012                  2013
                      RMB          %        RMB          %        US$
Revenue - restaurant  285,248      100.0    307,224      100.0    49,466
sales
Costs and expenses:
   Restaurant
expenses:
       Food and paper 134,315      47.1     144,581      47.1     23,279
       Restaurant
wages and related     57,752       20.2     60,896       19.8     9,805
expenses^1
       Restaurant     30,641       10.7     32,365       10.5     5,211
rent expense
       Restaurant     18,700       6.6      18,325       6.0      2,951
utilities expense
       Other
restaurant operating  11,749       4.1      11,919       3.9      1,918
expenses
   Selling, general
and administrative    15,989       5.6      19,330       6.3      3,112
expenses^1
   Pre-opening        3,319        1.2      2,110        0.7      340
expense
   Depreciation       13,585       4.8      16,808       5.5      2,706
   Property and
equipment impairment  2,529        0.9      3,982        1.3      641
charges
Total operating       288,579      101.2    310,316      101.1    49,963
expenses
Loss from operations  (3,331)      (1.2)    (3,092)      (1.1)    (497)
Interest income       5,225        1.8      6,088        2.0      980
Foreign exchange loss (105)        (0.0)    (353)        (0.1)    (57)
Other income/(loss)   (703)        (0.2)    138          0.0      22
Income before income  1,086        0.4      2,781        0.8      448
taxes
Income tax            (17,181)     (6.0)    786          0.3      127
expense/(benefit)
Net income            18,267       6.4      1,995        0.5      321
Basic net income per  0.18                  0.02                  0.003
share
Diluted net income    0.17                  0.02                  0.003
per share
Basic net income per  0.70                  0.08                  0.01
ADS
Diluted net income    0.69                  0.08                  0.01
per ADS
Basic weighted
average ordinary
shares                103,871,006           104,420,350           104,420,350

  outstanding
Diluted weighted
average ordinary
shares                105,182,834           105,615,904           105,615,904

   outstanding
Note [1] Includes share-based compensation expenses of RMB4.5 million and
RMB3.9 million ($0.6 million) for the three months ended March 31, 2012 and
2013, respectively.

 

Condensed Statements of Consolidated Comprehensive Income
(Amounts in thousands)
(Unaudited)
                                              For the three months ended March
                                              31,
                                              2012          2013
                                              RMB           RMB         US$
Net income                                    18,267        1,995       321
Other comprehensive loss
     Foreign currency translation adjustments (43)          (83)        (13)
Comprehensive income                          18,224        1,912       308

 

Condensed Consolidated Cash Flow Statements
(Amounts in thousands)
(Unaudited)
                                          For the three months ended March 31,
                                          2012          2013
                                          RMB           RMB          US$
Operating activities:
   Net income                             18,267        1,995        321
   Adjustments to reconcile net income to
net cash

      provided by operating activities:
      Loss/(gain) on disposals of         (44)          2,284        368
property and equipment
      Property and equipment impairment   2,529         3,982        641
charges
      Depreciation                        13,585        17,199       2,769
      Share based compensation            4,519         3,875        624
   Changes in operating assets and                                   -
liabilities:
      Due from related parties            100           (464)        (75)
      Inventories                         12,490        (1,207)      (194)
      Prepaid rent                        1,103         1,089        175
      Prepaid expenses and other current  (1,248)       3,192        514
assets
      Deposits for leases                 (55)          (696)        (112)
      Accounts payable                    (11,940)      (3,640)      (586)
      Deferred revenue                    (544)         4,502        725
      Due to related parties              -             (7)          (1)
      Accrued payroll                     (1,757)       (2,506)      (403)
      Income taxes payable                (12,550)      (3,961)      (638)
      Deferred rent                       2,589         2,440        393
      Other liabilities                   243           201          33
Net cash provided by operating activities 27,287        28,278       4,554
Investing activities:
   Purchase of property and equipment     (49,982)      (18,731)     (3,016)
   Proceeds from disposals of property    224           76           12
and equipment
   Purchase of short-term investment      -             (159,849)    (25,737)
   Withdrawal of short-term investment    -             130,583      21,025
Net cash used in investing activities     (49,758)      (47,921)     (7,716)
Financing activity:
   Proceeds from exercise (early
exercise) of employee                     26            239          38

      stock options
Net cash provided by financing activity:  26            239          38
Effect of exchange rate                   (43)          (83)         (13)
Net decrease in cash and cash equivalents (22,488)      (19,487)     (3,137)
Cash and cash equivalents, beginning of   327,546       229,367      36,930
period
Cash and cash equivalents, end of period  305,058       209,880      33,793

 

Supplementary Metrics – Reconciliations of GAAP to non-GAAP Financial Measures
(Amounts in thousands, except ADSs and per ADS data)
                                             Three months ended March 31,
                                             2012        2013
                                             RMB         RMB         US$
Net income                                   18,267      1,995       321
Share-based compensation expenses:
Restaurant wages and related expenses        872         1,082       174
Selling, general and administrative expenses 3,647       2,793       450
One-time income tax benefit                  (17,769)    -           -
Adjusted net income (non-GAAP)               5,017       5,870       945
Diluted net income per ADS                   0.69        0.08        0.01
Adjusted diluted net income per ADS (non-
                                             0.19        0.22        0.04
GAAP)
Diluted weighted average ADSs outstanding    26,295,709  26,403,976  26,403,976
                                             Three months ended March 31,
                                             2012        2013
                                             RMB         RMB         US$
Net income                                   18,267      1,995       321
Income tax expense/(benefit)                 (17,181)    786         127
Interest income                              (5,225)     (6,088)     (980)
Depreciation and amortization                13,585      16,808      2,706
EBITDA (non-GAAP)                            9,446       13,501      2,174
EBITDA (non-GAAP)                            9,446       13,501      2,174
Foreign exchange loss                        105         353         57
Other income/(loss)                          703         (138)       (22)
Property and equipment impairment charges    2,529       3,982       641
Share-based compensation expenses
Restaurant wages and related expenses        872         1,082       174
Selling, general and administrative expenses 3,647       2,793       450
Adjusted EBITDA (non-GAAP)                   17,302      21,573      3,474

SOURCE Country Style Cooking Restaurant Chain Co., Ltd.

Website: http://ir.csc100.com/
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