Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Xueda Education Group (NYSE:XUE)

Q2 2013 Earnings Conference Call

August 14, 2013 8:00 p.m. ET

Executives

Ross Warner – IR Director

Xin Jin – Co-Founder and CEO

Christine Lu-Wong – CFO

Analysts

Fei Fang – Goldman Sachs

Mark Marostica – Piper Jaffray

Jack Yang – T.H. Capital

Chao Wang – Bank of America-Merrill Lynch

Operator

Good day everyone and welcome to the Second Quarter 2013 Earnings Conference for Xueda Education Group.

(Operator Instructions).

I would now turn the call over to Mr. Ross Warner, the company's IR Director. Please go ahead.

Ross Warner

Hello everyone. Welcome to Xueda Education Group's second quarter 2013 earnings call. Our earnings released crossed the wire a few hours ago and is available on newswire services and on our website. On our website you'll also find a PowerPoint presentation to follow along with today's presentation.

Before starting, I will remind you that all statements included in this conference call other than statements of characterizations of historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the US Private Securities Litigation Reform Act of 1995.

Forward-looking are not guarantees of future results and are subject to risks and uncertainties and as such our results may be materially different from the views expressed here today. A number of potential risks and uncertainties are outlined in our public filings with the SEC. Xueda does not undertake any obligation to update any forward-looking statements except as required under applicable law.

In today's call we will discuss various non-GAAP financial matters as defined by the SEC's Regulation G. A reconciliation of the differences between GAAP and the non-GAAP financial numbers can be found in our earnings release.

Speaking today will be Mr. Xin Jin, Xueda's Co-Founder and Chief Executive Officer, and Ms. Christine Lu-Wong, the company's Chief Financial Officer.

I will now turn the call over to our CEO, Mr. Xin Jin.

Xin Jin

Thank you, Ross. Good morning and good evening everyone. Thank you for joining Xueda Education Group's second quarter 2013 earnings call. I'm proud to report our second quarter 2013 results. We've not only exceeded guidance but also reached record highs across a broad base of key financial and operating metrics.

Total net revenue for the quarter topped record about $115 million, increasing 18% year over year, and the non-GAAP EPS up [$0.28 with] guidance, growing 33% over the same period last year. Enrollment and course hours delivered also hit record highs for the quarter. This strong result further validates that our focus on profit strategy is working (inaudible) shareholder value.

I'd like to draw attention to key operating metrics introduced in last quarter's earnings call that are [course hours], our focus on profit strategy, labor utilization and space utilization. Simply speaking, by concentrating on ways to increase the number of course hours delivered per learning center square meter, we're [drawing] more profit to the profit line. Compared to the same quarter last year, our labor utilization rate increased 9% and our space utilization rate increased nearly 8%. These are significant year-over-year gains.

Here is an example to illustrate the improved utilization efficiency. In the second quarter, full-time instructors delivered nearly 600,000 more course hours than the previous quarter. (inaudible) significant uptick in course hours, our learning center principals (inaudible) optimization met the demand, we are keeping the full-time instructor headcount essentially flat, adding only 21 new full-time instructors across the network from the previous quarter. As a further point of comparison, in 2012, for the same two quarters, at the time, instructors headcount increased by 1,000 to meet our increase in demand of [600,000] course hours.

Essentially what this shows is that our learning center principals are becoming more efficient in operating their centers by delivering more course hours with fewer instructors (inaudible) profitability for the second quarter of 2013 of full-time instructors delivered 326 course hours, up significantly from 299 in the second quarter of last year. We believe that labor utilization rates has [generated] upside potential. During the peak season, we estimate labor utilization rates can reach 400 course hours versus full-time instructor per quarter. We believe our space utilization rate also has room to expand. Currently at 12.8 hours per square meter per quarter, we target this rate to increase to around 20 hours per square meter per quarter.

Moreover, the composition of (inaudible) classroom to improve labor and space utilization (inaudible) learning center expansion and further ASP increase provides us with confidence that we can sustain double-digit revenue and profit growth in 2014 and beyond.

Turning now to academic matters, as investors know, the second quarter of the year is a peak season as many students prepare for national high school and college entrance exams, known as Zhongkao and Gaokao. I am especially proud to report that for the 2013 exam year, more than 30% students have started with (inaudible) test results (inaudible) the qualification requirements to enter China's tier 1 universities for bachelor's degree and 60% (inaudible) test results above the entrance qualification requirements for tier 2 universities.

These results are the highest in our operating history. We attribute not only to the students but also to our dedicated instructors, curriculum developers and learning centers (inaudible) personalized [teaching] system so effective. We are seeing (inaudible) between the grade good test results for schools of students and future enrollment [goals]. It is undeniable that our results of Xueda business achieved our marketplace expectation. In fact, in July and August 2013, the month immediately following the Zhongkao/Gaokao testing period, our new student enrollment reached record high for the (inaudible) and our enrollment reached a renewal rate (inaudible) 20%. It is too early too for us and conclude for the third quarter, but at first glance we are encouraged to see that our commitment to children excellence is growing marketplace (inaudible) new enrollment growth.

In closing, as we look forward the second half of the year and more (inaudible) that we are on the track (inaudible) executing the right strategy and focusing on the right key metrics, that we (inaudible) increase profitability and sustain growth for Xueda.

Now here's Christine, CFO, to highlight portions of our second quarter 2013 financial results and provide our outlook for third quarter and full year.

Christine Lu-Wong

Thank you very much, Xin. Hello. Hello to everyone on the call.

I'm pleased that Xueda delivered strong financial results in the second quarter 2013, comfortably beating our previously stated guidance. As outlined in our last earnings call, we view profitability as our top priority for 2013. And as evidenced by the solid utilization and margin improvement in the second quarter, we are executing according to plan and are well on our way to reaching our operating goals and business outlook for the year.

Now let me review our financial results for the second quarter of 2013. Please note that all numbers discussed today are in US dollars unless otherwise stated. First let's turn to slide five.

Total net revenues in the second quarter of 2013 increased 18.4% year-over-year to $114.6 million, from $96.9 million in the year-ago period. Total course hours delivered in the quarter increased 6% year over year to approximately 3.7 million hours from 3.5 million hours in the previous year. Average hourly course fee increased nearly 10% year over year to approximately $31.5 from $28.7 a year ago. Embedded in this increase is the 3% foreign exchange gain.

Next, let's look at cost of revenues and gross margin details on slide six. Cost of revenues increased 12% year over year to $69.8 million from $62.4 million a year ago. The increase was principally due to higher teaching staff costs.

Teaching staff cost is the largest single item in our cost of revenues. And in the second quarter of 2013 it decreased to 47% of total net revenues compared to nearly 49% in the prior-year period. This improvement was driven by our continued labor cost control vigilance and staffing optimization as we reduced in force of more than 1,100 full-time instructors and sales consultants from the year-ago period.

Total rental costs, the second largest item in our cost of revenues, also decreased year over year, accounting for only 8.9% of total net revenues in the second quarter of 2013 compared to 10% in the year-ago period. This reduction is largely the result of downsizing facility requirement at the time of lease expiry or relocating to less expensive sites. In 2013, approximately 120 learning center [leases passed] all will come to expiry. By design, we are reducing the average size of our learning centers from roughly 900 to 1,000 square meters to 400 to 500 square meters.

Accordingly, gross profit in the second quarter increased 30% year over year to $44.9 million from $34.5 million a year ago. Gross margin increased to 39% from 36%. The improvement in gross margin was mainly driven by the greater efficiency across the learning center network and improved teaching staff utilization.

Looking deeper into our productivity metrics on slide seven, as Xin mentioned earlier, both course hour delivered per full-time instructor and per square meter of learning center have reached a new record in the second quarter. In addition, consistent with our strategy to slow new learning center expansion in the near term, we opened only two new learning centers and closed four centers, resulting in the net decrease of two learning centers for the second quarter of 2013.

Under the present condition we reiterate our goal to open 30 to 40 learning centers in 2013. Currently we prefer to wait until the second half of the year when approximately 50% of our second -- of our existing learning center will have been opened three or more years. At that time, with the majority of learning centers in mature stage of operation, the margin pressures associated with opening new centers can be better absorbed.

Turning to slide eight. Non-GAAP general and administrative expenses of $12.7 million in the second quarter decreased to nearly 11% of total net revenue, compared with nearly 13% in the prior year. Non-GAAP selling and marketing expenses of $9.5 million accounted for 8% of total net revenue. As the third quarter is traditionally a slow season for tutoring, we will invigorate marketing initiatives and promote brand awareness, drive new enrollments and capture referrals.

Consequently, we expect selling and marketing expenses as a percentage of total net revenue to be slightly higher in the third quarter than those in the second quarter of this year, but on [a trended] basis, to remain relatively flat for the year.

Benefiting from a combination of higher gross margin and expanded operating leverage, non-GAAP operating margin for the second quarter improved to 19.8%, compared with 14.1% for the same period last year. Non-GAAP net income was $18.3 million compared with $13.9 million a year ago. Non-GAAP diluted EPS was $0.28 compared to $0.21 in the year-ago period.

As some of you have asked about share-based compensation expenses, now let me quickly provide you with our estimate for the second half of 2013. To incentivize the long-term focus on our strategy, we have granted a pool of performance-based stock which will likely increase our share-based compensation expenses from 1.1% of revenue in the first half of 2013 to around 2.5% of revenue in the second quarter of 2013. As a result, our fully diluted share count will also increase to around 65.6 million ADS in the third quarter and around 59.8 million in the fourth quarter.

Moving to cash and cash flow on slide nine, we continue to have a healthy cash position. As of June 30, 2013, cash and short-term investments totaled $235 million compared with $250 million net of dividend payable as of December 31, 2012. Total deferred revenue for the second quarter decreased to $116.2 million from $149.7 million in the first quarter of 2013. This was anticipated and reflected the typical heavy usage of [contact] hours as Zhongkao and Gaokao students finish or has unused tutor -- or has unused tuition refunding. It also reflects [marked] year-over-year gains in enrollment and new contract signing of 2% and 4%, respectively.

With the customary renewal of marketing initiatives after Zhongkao and Gaokao testing season, as cited earlier, we've already seen an increase in July and August new enrollment and renewals, and we anticipate upticks in cash collections and deferred revenue from the second quarter levels.

Net operating outflow for the second quarter $5.3 million compared with $9.4 million for the second quarter in 2012. Capital expenditure for the second quarter was -- were $1.7 million compared to $5.6 million for the first quarter in 2013 and reflected our lower learning center expansion.

Overall the second quarter was a very good quarter for Xueda. We've built on the solid gains of the first quarter and validated that our focus on profit strategy is capable of delivering bottom line impacts. With the 2013 year-to-date performance evidence before us, we remain confident in our ability to expand profit margins through better labor and space utilization, improved operating leverage, and effective delivery, sustainable profit and outstanding cash flow.

Let me now provide you with our guidance for the third quarter 2013 which is summarized on slide 11. For the third quarter of 2013 we currently forecast net revenues to be in the range of $79 million to $81 million, an increase of 13.7% to 16.5% from the same quarter of the previous year. We estimate that the non-GAAP diluted EPS to be in the range of $0.01 to $0.02 compared to a loss of $0.05 per share in the third quarter of 2012. In our estimate, we assume an effective income tax rate -- we assume an effective income tax rate for the full year of 22% on non-GAAP income before income tax and weighted average diluted ADS of 68.5 million shares.

For the full year 2013 we maintain the high end of our existing net revenue guidance range at $352 million and raise the low end of the range from $342 million to $347 million. In other words, for the full year 2013, we forecast net revenue to be in the estimated range of $347 million to $352 million, an increase of 18.3% to 20% from the previous year.

Please note that our guidance is based on the current market conditions and reflect the company's current and preliminary estimates of market and operating conditions and customer demand which are all subject to change.

This concludes our prepared remarks. Operator, please open the call up now for questions.

Question-and-Answer Session

Operator

(Operator Instructions).

Your first question today comes from the line of Fei Fang from Goldman Sachs. Fei, please go ahead.

Fei Fang – Goldman Sachs

Hi, Mr. Jin, Christine. Congratulations on the great results.

My first question is, on your 3Q earnings guidance, you guided possibility of [$1.50] per share relative to the loss-making quarter in the past few years. Can you elaborate on the underlying assumptions behind the positive guidance? Are you seeing utilization further rises? And also how your competitors are behavior that gives you the visibility for 3Q breakeven? Thank you.

Christine Lu-Wong

So hello, good morning, Fei. Let me ask -- sorry, the line was a little bit not clear. I heard that as for the assumptions supporting the guidance, right? And second question please?

Fei Fang – Goldman Sachs

Correct. Yes. First question, Christine, is operating assumption, other tax assumptions, operating assumptions behind your positive guidance, so, especially in terms of utilization and competition. And I have a follow-up question but can we just address this first?

Christine Lu-Wong

That's the first question. Okay. Sure.

For the assumption supporting the third quarter EPS guidance, mainly we have -- still executing the utilization improvement and including our cost structure improvement in gross margin line. So from that, we are quite confident that on a full-year basis, looking at the full-year basis, we still execute on plan as we had planned will be close to the 2011 year on the gross margin. So we had planned on in between the 2011 number which is 29.7 and then in the between the 25 gross margin we had in 2012. So we are on plan executing the full-year range on the gross margins, mainly achieved through our utilization improvement.

Fei Fang – Goldman Sachs

Great. So 2011 is the benchmark for the upcoming third quarter. That's helpful.

Christine, if I may have a follow-up question, so, how fast do you plan to raise your ASP in the coming quarters? And just in relation to that, how fast have the rental cost and teacher salary has been rising?

Christine Lu-Wong

Okay. So let me start on this and then maybe, Xin, if you have further comment, we can add on. So for the ASP, our ASP is around $31.50 in second quarter. And that should be sustainable for the remainder of 2013. We do believe that we have additional pricing power to offset the teacher cost inflation. And we also anticipate a gradual increase in our ASP, but we will control it on a very paced -- controlled pace level because we do believe the service level has to be offered in line with the ASP increase.

So let me also touch upon on the teacher inflation. Overall (inaudible) cost structure is -- for teachers, they are on a combination of fixed salary, fixed base salary and also on their incentives delivered on the variable. So on the base salary wise, we didn't really have much inflation from the base salary. However, we do see that the teacher can gain more -- can gain more on their compensation is through delivering more of the course hour. So in that sense this is a win-win situation because the company does not need to offer a fixed cost and yet both party can gain a higher pricing power.

Fei Fang – Goldman Sachs

Great, Christine, that's very helpful. Thank you so much.

Christine Lu-Wong

You're welcome, Fei.

Operator

Your next question today comes from the line of Mark Marostica from Piper Jaffray. Mark, please go ahead.

Mark Marostica – Piper Jaffray

Yes, nice work on the quarter. A couple of questions. Actually my first one is just a follow-on on the prior question. I'm just curious with regards to the teacher situation. How many more teachers do you need to add on the staffing perspective, or is -- the case that you're just not planning to add teachers at all? Could you give us a sense of the hiring plans for teachers?

Christine Lu-Wong

Okay. Maybe Xin, you can have additional color on the teachers?

(Chinese language spoken)

Xin Jin

(Chinese language spoken)

Christine Lu-Wong

So the answer from Xin is that traditionally second quarter for Xueda is our peak season. So from what we see right now, if we do not open centers, this workforce is enough to support our growth, if we use the same learning center. However, as we are planning to add -- execute to our plan on the new center on the second half, the new center will require some level of teaching staff to maintain the center. However, the overall level is going to be -- remain at the existing per teacher hour, the hour delivered per teacher, that metric is going to remain quite stable.

Mark Marostica – Piper Jaffray

Okay, thank you for that color. And then in regards to your comments, Christine, about the learning centers coming up for lease renewal or expiration of the leases, I think you mentioned that there are 120 that will come up sometime in 2013. How many of those have already come up for renewal and how many are less of the 120? And then can you give us a sense of the I think 387 total learning centers, how many remain out there that were finishing, coming up for lease renewal?

Christine Lu-Wong

Okay. All right. Let me get the first shot.

So our --

Mark Marostica – Piper Jaffray

And by the way, just to clarify, come up for lease renewal whereby you need to or you will look opportunistically at right-sizing the square footage?

Christine Lu-Wong

Okay, okay. I see. Hi, Mark. Let give a first shot and then Xin can add on to it.

Out of the 387 learning centers, 120 are up for renewal for this year. And out of that, to your first question, we had already renewed about 40 of them. And then for the remaining, we are using a metric on the utilization rate to decide whether we need to downsize it or just keep on the same level. So there is still room to -- there's room to grow on our efficiency on the learning center. So that's the first question, right?

And then what's the second question, Mark?

Mark Marostica – Piper Jaffray

Yeah, the second question is just extending that same thought process, looking at the total number of learning centers that you have, how many roughly would you say at this point, and maybe too premature to know, but trying to get a sense for how many of those are not yet sized appropriately, you know, where you can get them down from 1,000 square feet to let's about 400 to 500 square foot sweet spot that you'd talked about, or excuse me, square meters, sweet spot that you talked about.

Christine Lu-Wong

So how many out of the 387 we need to downsize, right?

Mark Marostica – Piper Jaffray

Yeah.

Christine Lu-Wong

We have put our work on two stage. One is only look at the one that is going to -- due for renewal, because that way the penalty for early [exit] will be minimized. And then we will further look into next year when we come to expiration, so we will look at them batch by batch. So we have not fully [listed] the full 387 centers --

Xin Jin

(Chinese language spoken)

Christine Lu-Wong

So we have not planned to do them all at once. We will do it by batch when they do renewals. However, looking at the overall, there's about 200-plus, about one-third of the centers, they can be readjust, their size, and then put them into the right size according to the calculation of healthy utilization rate.

Mark Marostica – Piper Jaffray

Okay, great. Thank you. I'll turn it over.

Christine Lu-Wong

Thank you, Mark. Thanks.

Operator

(Operator Instructions).

Your next question comes from the line of Jack Yang from T.H. Capital. Jack, please go ahead.

Jack Yang – T.H. Capital

Hello, Xin and Christine. I have a question about the ramp-up of the 88 learning centers opening in the second half 2012. So my question is, how much could it contribute to the 2Q '13 results? And what would be the performance of the ramp-up of learning centers like in the second half 2013?

Christine Lu-Wong

Hi. Good morning, Jack. I actually can barely hear your question. May I ask your help to repeat the question please?

Jack Yang – T.H. Capital

Okay. Can you give us color on the ramp-up 80-plus learning centers opened in second half 2012? And I want to know how much could it contribute to the 2Q '13 results and what could be the performance this ramp-up in learning centers be like in second 2013.

Christine Lu-Wong

Okay. I see. First of all, the add 88 is in the first half of 2012, not the second half. We added on the first half of 2012.

Jack Yang – T.H. Capital

Sorry.

Christine Lu-Wong

First half, that's right. In terms of how much revenue for these centers contribute to the year 2013, we do not have the number right on-hand right here. However, I do know that the contribution to last year's revenue is about 5% of last year's total revenue. And then typically a first year learning center growth on the top line is around 300%. I have not tracked them for the year 2013, but that's the general trend.

Jack Yang – T.H. Capital

Okay. I have a follow-up question about your operating expenses. As you -- as the press release said, you're doing some [diligent] cost containment and expenses management. I just want to know what additional [expense-cutting] measures were taken during the quarter to control the expenses, especially for the selling and marketing as we see that the competitive that all of your competitors doing aggressively the marketing in terms of spend in marketing. Can you give us more color on the expenses side and also the competitive landscape on this, you know, selling and marketing expenses?

Christine Lu-Wong

Okay. So let start it and then Xin can jump on, on this, selling and marketing expenses. First of all, let me clarify, for Xueda, we actually have not -- we had never planned to cut our selling and marketing expenses or the G&A. We have no need to cut the expenses. So we had been executing on our plan as to spend a stable level of selling and marketing expenses as a percentage of our new enrollment dollars, new cash collection dollars. So that has been still on the plan.

The reason we're seeing that the percentage on the selling and marketing decreased from 9.1% last year to 8.3% this year, however, the dollar actually had increased from the $8.8 million last year to $9.5 million this year. That is mainly we are still planning -- we are still spending on that level that we designed. However, in the third quarter, typically is a heavy season for spending on sales and marketing, to promote the new enrollment. We will see that the new enrollment dollar will increase as well as the selling and marketing dollar will increase, still keeping to the same percentage level that we are operating on. So that's first question about the selling and marketing.

And then to the G&A dollars, we are spending approximately the same dollar level from the prior year, that's what we have planned to do, and maybe just slightly a little bit year-on-year on dollar terms. But as the revenue expands, the percentage of G&A as a percentage of revenue will come down. So that's what we are seeing in the second quarter.

Jack Yang – T.H. Capital

Okay. How about -- I have a follow-up question about the competitive landscape, in terms of some of your competitors are doing aggressively the selling and marketing on about the one-on-one business. Can Xin or you give us some color on the competitive landscape?

Christine Lu-Wong

(Chinese language spoken)

Xin Jin

(Chinese language spoken)

Jack Yang – T.H. Capital

Xie-xie, Xin. Thank you.

Christine Lu-Wong

So what Xin was saying on the selling and marketing expenses, what we are seeing on the -- on our industry, we had not seen anyone has heavily spent on the sales and marketing. Overall we see the industry spending pretty stable and keep on the same trend.

Operator

Our next question today comes from the line of Chao Wang from Merrill Lynch. Chao, please go ahead.

Chao Wang – Bank of America-Merrill Lynch

Thank you for taking my questions. My first question is regarding the full-year guidance. It seems that ASP increase contribute about 10% of growth. So do you expect similar level of ASP increase for next year?

And second question was, could you update us on your small class business? Thank you.

Christine Lu-Wong

What is the second question, Chao? Sorry about that.

Chao Wang – Bank of America-Merrill Lynch

I wonder if you could give us some update on your small class business --

Christine Lu-Wong

Small class, update on small class. Okay.

(Chinese language spoken)

Xin Jin

(Chinese language spoken)

Christine Lu-Wong

Okay. For the first question, Chao, we have seen that our ASP rise between 7% to 10% this year. For next year we are anticipating keeping around the same range, approximately 7% to 10%. That is the rate that we are anticipating to be, a very stable increase on ASP. However, there are still other factors that we consider. One is that on the labor cost and also rental cost increase that we have to cover, that is a major factor on the ASP. However, we also have our own pricing strategy focusing in a few differentiated class offerings, so, also differentiate the teacher level. So we actually, we're pricing according to the differentiating classroom teacher we are offering, to pricing differently. So overall we do see that next year of seeing a stable level on the price increase on ASP.

Xin Jin

(Chinese language spoken)

Christine Lu-Wong

Around the second question from Chao on the update on small class, Xin Jin answered the following.

First of all, in Xueda, we don't call it small class. We call it small group, meaning one teacher facing less than 10 students. So within 10 studies, it's quite a small group. If we had over 10 to 20 student per class, then we call it small class. However, what we wanted to emphasize, that Xueda is an organization really focusing on personalized learning. So this is the strategy on our learning strategy, is that we wanted to offer tailor-made and personalized learning experience to our students. In that broader base, we have the strategies that we don't set up a separate brand name within Xueda and then operate small class, because what we wanted to develop is every learning center, they will offer a combination of both one-on-one class as well as small group class for the -- to fulfill the need by students according to their needs. So this is our strategy, is to have a combination offering to our students to deliver a personalized service to the students.

Chao Wang – Bank of America-Merrill Lynch

Thank you.

Christine Lu-Wong

Thank you, Chao.

Operator

There are no further questions on the line today. I would now like to hand the call back to management for closing remarks.

Ross Warner

On behalf of the Xueda Education Group, thank you for your interest and participation in today's call. If you have further questions, please email us at investor_relations@xueda.com or contact us through any of the channels listed in the Investor Relations section of our website, www.xueda.com.

This concludes our second quarter 2013 earnings call. Thank you.

Operator

Ladies and gentlemen, that does conclude the conference for today. Thank you all for your participation. You may all disconnect.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Xueda Education Group's CEO Discusses Q2 2013 Results - Earnings Call Transcript
This Transcript
All Transcripts