HQ Global Education Inc. recently announced their financial results for the first quarter of fiscal year 2011, ended November 30, 2010.
Revenues generated in the first quarter of fiscal year 2011 increased by 27.9 percent to $16.6 million, up from $13.0 million in the first quarter of fiscal year 2009. Tuition and other fees generated $12.2 million, or 73.3 percent, of revenues. Services generated $4.4 million, or 26.7 percent of revenues.
Gross margin for the first quarter of fiscal year 2011 was 39.0 percent. This is in comparison to a 39.6 percent margin in the first quarter of fiscal year 2010. Gross profit for the first quarter of fiscal year 2011 ended November 30, 2010 was $6.5 million as compared to $5.2 million for the period ended November 30, 2009.
Net income for the first quarter of fiscal year 2011 increased 53.5 percent to $5.5 million, compared with $3.6 million in the first quarter of fiscal year 2010. Earnings per diluted share were $0.17 for the quarter. This is in comparison with diluted EPS of $0.17 achieved in the same period the year prior.
Mr. Guangwen He, Chairman and CEO of HQ Global Education Inc., stated, “Our first quarter fiscal 2011 performance was highlighted by solid revenue and net income growth, as well as improved margins. These strong results demonstrate our ability to successfully manage costs as we expand our operations. We grew our student enrollment at HQ-operated schools to a record 37,408 students in the first semester of fiscal year 2011. There is an urgent need for skilled workers in China’s rapidly developing economy, and we anticipate that enrollment in vocational training programs such as ours will continue to increase.”
Mr. He continued, “During the remainder of fiscal 2011, we plan to seek strategic partnerships with other schools, expand our existing facilities and program offerings, and promote the HQ brand name to increase our market presence and attract new students to our schools. By leveraging our strong reputation and successful operating history, we expect the positive growth pattern of recent years to continue into 2011.”
Headquartered in Hunan Province, China, HQ Global Education Inc. provides “customized training” services to a broad spectrum of students. This is through operating their own private schools or cooperating with selected public vocational schools in China.
The Company provides full educational and job placement services, realizing recurring revenues such as tuition, school logistics services fees, off-campus internship management fees, and job placement fees. As of November 30, 2010, there were more than 374,000 students from 25 provinces throughout China enrolled in HQ-operated schools. By November 30, 2010, the Company has kept the record 100 percent job placement rate for their graduates.
HQ Global Education Inc. has established contractual relationships with approximately 128 corporate clients. They provide training and internship arrangements to students who upon graduation are hired by these corporate employers. The HQ brand has become increasingly synonymous throughout China with superior vocational training to meet employer needs and with career fulfillment for those who aspire to become skilled workers.
For more information visit: www.hq-education.com