51 Job (NASDAQ:JOBS)

First Quarter 2013 Financial Results:

• Total revenues of RMB380.4 million (US$61.2 million), a 0.1% decrease compared to Q1 2012 and within the Company's guidance range
• Fully diluted earnings per common share were RMB1.82 (US$0.59 per ADS)
• Excluding share-based compensation expense and loss from foreign currency translation as well as their related tax impact, non-GAAP adjusted fully diluted earnings per common share were RMB2.07 (US$0.67per ADS), within the Company's guidance range

Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said, "Although the lateChinese New Year holiday meaningfully delayed the recruitment peak season and affected the amount of revenues we were able to capture in the first quarter, we have observed a solid increase in hiring activity and improved sentiment among employers in 2013. The acceleration in the growth of online employers was especially encouraging as we stepped up our customer acquisition efforts and strengthened our market leadership position. For this year, we remain focused on expanding our customer base, deepening relationships with HR departments for cross-selling opportunities, and innovating new products to increase user engagement and effectiveness for our corporate clients and individuals alike."

Business Outlook

Based on current market conditions and an expected year-over-year decrease in print advertising revenues as the Company transitions away from this business, the Company's revenue target for the second quarter of 2013 is in the estimated range of RMB395 million to RMB410 million (US$63.6 million to US$66.0 million). Excluding share-based compensation expense and any loss or gain from foreign currency translation as well as their related tax impact, the Company's non-GAAP fully diluted earnings target for the second quarter of 2013 is in the estimated range of RMB2.20 to RMB2.35 per common share (US$0.71 to US$0.76 per ADS). The Company expects total share-based compensation expense in the second quarter of 2013 to be approximately RMB15 million to RMB16 million (US$2.4 million to US$2.6 million).

SHANGHAI, March 18, 2013 /PRNewswire/ -- 51job, Inc. (Nasdaq: JOBS), a leading provider of integrated human resource services in China, announced today that the board of directors has appointed Mr. Li-Lan Cheng as an independent director and a member of the audit committee.

Li-Lan Cheng is the chief operating officer of E-House (China) Holdings Limited, a real estate services company listed on the New York Stock Exchange, since April 2012 and served as its chief financial officer from November 2006 to April 2012. Prior to joining E-House, Mr. Cheng served from 2005 to 2006 as the chief financial officer of SouFun Holdings Limited, a leading real estate Internet portal and a leading home furnishing website in China. From 2002 to 2004, Mr. Cheng served as an executive director and the chief financial officer of SOHO China Limited, a real estate developer inBeijing. From 1997 to 2002, he was an assistant director and the head of Asian transportation sector investment banking group of ABN AMRO Asia. Mr. Cheng is also an independent director of Country Style Cooking Restaurant Chain Co. Ltd., a quick service restaurant chain listed on the New York Stock Exchange, and Le Gaga Holdings Limited, a leading greenhouse vegetable producer in China listed on the Nasdaq Stock Market. Mr. Cheng received his Bachelors degree in Economics from Swarthmore College and his Ph.D. degree in Economics from theMassachusetts Institute of Technology. Mr. Cheng is a chartered financial analyst.

"We warmly welcome Li-Lan as a director. His extensive experience and financial background will add significant value to our board," said Rick Yan, President and Chief Executive Officer of 51job, Inc.

Pursuant to this appointment, the Company's board of directors is now comprised of five members, a majority of whom are independent directors, and its audit committee has three members, all of whom are independent directors. As a result, the Company has returned to full compliance with Nasdaq listing requirements.

In addition, David K. Chao, an independent director who has been a member of the Company's board since 2000, was elected as chairman of the board.

Fourth Quarter 2012 Financial Highlights:

• Total revenues increased 7.4% over Q4 2011 to RMB397.3 million (US$63.8 million), exceeding the Company's guidance
• Online recruitment services revenues increased 9.6% over Q4 2011 to RMB237.9 million (US$38.2 million)
• Gross margin was 70.6% compared with 71.2% in Q4 2011
• Income from operations increased 6.5% over Q4 2011 to RMB119.4 million (US$19.2 million)
• Fully diluted earnings per common share were RMB2.06 (US$0.66 per ADS)

Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said, "Against the backdrop of an uncertain economic climate in China, weaker hiring demand and the accelerated wind down of our print operations, we are pleased to have achieved revenue growth and improved profitability in 2012. With a sharp focus on executing our product development and sales strategies, we made meaningful progress in our online business, expanding our customer base and enhancing the user experience of job seekers. We also benefited from the increasing contribution from our other HR services, which maintained a healthy growth trajectory despite volatile market conditions. Our initiatives for 2013 are centered on further strengthening our position as the leading platform connecting employers and individuals in China, and we look forward to capturing exciting opportunities over the coming year."

Business Outlook

For the first quarter of 2013, the Company's business outlook will be impacted by the late arrival of the Chinese New Year holiday relative to 2012, which will materially affect seasonality and year-over-year comparisons. Based on current market conditions and an expected significant year-over-year decrease in print advertising revenues as the Company transitions away from this business, the Company's revenue target for the first quarter of 2013 is in the estimated range of RMB380 million to RMB400 million (US$61.0 million to US$64.2 million). Excluding share-based compensation expense and any loss or gain from foreign currency translation as well as their related tax impact, the Company's non-GAAP fully diluted earnings target for the first quarter of 2013 is in the estimated range of RMB1.95 to RMB2.20 per common share (US$0.63 to US$0.71 per ADS). The Company expects total share-based compensation expense in the first quarter of 2013 to be approximately RMB13 million to RMB14 million (US$2.1 million to US$2.2 million).

The Company informed Nasdaq of its material non-compliance with Nasdaq's corporate governance rules, and the Company received a letter dated December 6, 2012 from Nasdaq stating that the Company no longer complies with Nasdaq's independent director and audit committee requirements as set forth in Listing Rules 5605(b)(1) and 5605(c)(2)(A), respectively.

The letter also stated that, consistent with Listing Rules 5605(b)(1)(A) and 5605(c)(4)(B), Nasdaq will provide the Company a cure period in order to regain compliance. The Company intends to regain full compliance by adding a new independent director before the earlier of the Company's next annual shareholders meeting or December 6, 2013. If the next annual shareholders meeting is held before June 4, 2013, then the Company will evidence compliance no later than June 4, 2013.

SHANGHAI, December 7, 2012 /PRNewswire/ -- 51job, Inc. (Nasdaq: JOBS), a leading provider of integrated human resource services in China, announced the results of its annual general meeting ("AGM") of shareholders held inShanghai on December 6, 2012.

At the meeting, shareholders resolved to elect each of the following four individuals to the Company's Board of Directors until the close of its next annual general meeting of shareholders: David K. Chao, James Jianzhang Liang,Kazumasa Watanabe and Rick Yan. Mr. Donald L. Lucas did not seek re-election at the AGM, and therefore one vacancy currently exists in the Company's Board of Directors.

Following the results of the AGM, the Company informed Nasdaq of its material non-compliance with Nasdaq's corporate governance rules, and the Company received a letter dated December 6, 2012 from Nasdaq stating that the Company no longer complies with Nasdaq's independent director and audit committee requirements as set forth in Listing Rules 5605(b)(1) and 5605(c)(2)(A), respectively.

The letter also stated that, consistent with Listing Rules 5605(b)(1)(A) and 5605(c)(4)(B), Nasdaq will provide the Company a cure period in order to regain compliance. The Company intends to regain full compliance by adding a new independent director before the earlier of the Company's next annual shareholders meeting or December 6, 2013. If the next annual shareholders meeting is held before June 4, 2013, then the Company will evidence compliance no later than June 4, 2013.

Third Quarter 2012 Results

• Total revenues increased 8.9% over Q3 2011 to RMB373.7 million (US$59.5 million), exceeding the Company's guidance
• Excluding share-based compensation expense and gain from foreign currency translation as well as their related tax impact, non-GAAP adjusted fully diluted earnings per common share were RMB2.13 (US$0.68 per ADS), exceeding the Company's guidance vs. US$0.50 in prior year.
  

Second Quarter 2012 Financial Highlights:

• Total revenues increased 8.4% over Q2 2011 to RMB360.4 million (US$56.7 million), within the Company's guidance
• Online recruitment services revenues increased 17.6% over Q2 2011 to RMB235.9 million (US$37.1 million)
• Gross margin increased to 72.6% compared with 71.8% in Q2 2011
• Income from operations increased 8.8% over Q2 2011 to RMB118.4 million (US$18.6 million)
• Fully diluted earnings per common share were RMB1.93 (US$0.61 per ADS)
• Excluding share-based compensation expense and gain from foreign currency translation as well as their related tax impact, non-GAAP adjusted fully diluted earnings per common share were RMB2.10 (US$0.66per ADS), exceeding the Company's guidance
• Cash and short-term investments increased to RMB2,280.4 million (US$358.9 million) as of June 30, 2012

Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said, "Amid increased economic uncertainty in China, we observed softer market demand for our recruitment services in the second quarter. Despite these stronger headwinds, we moved ahead in executing our key business initiatives, adding new corporate customers and extending our sales coverage. In addition, we were pleased that the continued, rising contribution of our other HR services area offset some of the recruitment demand volatility. While employers remain cautious about hiring, we will focus our efforts on product development and service efficiency to strengthen our market position and company fundamentals for sustainable, long-term growth."

Business Outlook

Based on current market conditions and factoring in a significant year-over-year decrease in print advertising revenues as the Company transitions away from this business, the Company's revenue target for the third quarter of 2012 is in the estimated range of RMB355 million to RMB370 million (US$55.9 million to US$58.2 million). Excluding share-based compensation expense and any loss or gain from foreign currency translation as well as their related tax impact, the Company's non-GAAP fully diluted earnings target for the third quarter of 2012 is in the estimated range of RMB1.95 to RMB2.10 per common share (US$0.61 to US$0.66 per ADS). The Company expects total share-based compensation expense in the third quarter of 2012 to be approximately RMB13 million to RMB14 million (US$2.0 million to US$2.2 million).

First Quarter 2012 Financial Highlights:

• Total revenues increased 17.3% over Q1 2011 to RMB380.8 million (US$60.5 million), within the Company's guidance range of RMB375 million to RMB390 million 
• Online recruitment services revenues increased 32.6% over Q1 2011 to RMB 229.1 million (US$36.4 million) 
• Gross margin expanded to 72.4% compared with 70.5% in Q1 2011
• Income from operations increased 21.0% over Q1 2011 to RMB130.8 million (US$20.8 million)
• Fully diluted earnings per common share were RMB2.03 (US$0.64 per ADS)
• Excluding share-based compensation expense and loss from foreign currency translation as well as their related tax impact, non-GAAP adjusted fully diluted earnings per common share were RMB2.23 (US$0.71per ADS), exceeding the Company's guidance range of RMB2.05 to RMB2.20
• Cash and short-term investments increased to RMB2,222.4 million (US$352.9 million) as of March 31, 2012

Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said, "We are pleased to start off the year with solid financial results driven by healthy employer demand for our online and other HR services in the first quarter. Although concerns about macroeconomic conditions continue to weigh on enterprises in China, we made steady progress in expanding our customer base and geographic reach. Leveraging our competitive advantages in brand recognition, product effectiveness, service quality and execution capability, we believe that we are strongly positioned for profitable growth in 2012 and beyond."

Business Outlook

Based on current market conditions and factoring in a significant year-over-year decrease in print advertising revenues as the Company transitions away from this business, the Company's revenue target for the second quarter of 2012 is in the estimated range of RMB360 million to RMB375 million (US$57.2 million to US$59.5 million). Excluding share-based compensation expense and any loss or gain from foreign currency translation as well as their related tax impact, the Company's non-GAAP fully diluted earnings target for the second quarter of 2012 is in the estimated range of RMB1.90 to RMB2.05 per common share (US$0.60 to US$0.65 per ADS). The Company expects total share-based compensation expense in the second quarter of 2012 to be approximately RMB14 million to RMB15 million (US$2.2 million to US$2.4 million).

Fourth Quarter 2011 Results

• Total revenues increased 22.6% over Q4 2010 to RMB369.8 million (US$58.8 million), within the Company's guidance range of RMB360 million to RMB370 million 
• Online recruitment services revenues increased 39.1% over Q4 2010 to RMB216.9 million (US$34.5 million)
• Gross margin expanded to 71.2% compared with 65.4% in Q4 2010
• Income from operations increased 44.2% over Q4 2010 to RMB112.1 million (US$17.8 million)
• Fully diluted earnings per common share were RMB1.93 (US$0.61 per ADS)
• Excluding share-based compensation expense and loss from foreign currency translation as well as their related tax impact, non-GAAP adjusted fully diluted earnings per common share were RMB2.14 (US$0.68 per ADS), exceeding the Company's guidance range of RMB1.85 to RMB1.95

Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said, "Driven by continued strength in our online business and increasing contribution from our other HR services, we ended the year on a high note with record revenues and net income in the fourth quarter. In 2012, we are moving ahead confidently in executing our growth plan and key initiatives focused on product innovation, new customer acquisition and geographic expansion. Guided by our constant goal to deliver the most effective, best-in-class set of HR solutions to employers in China, we believe that we are very well positioned to capture new revenue opportunities, extend our market leadership position and create greater value for our shareholders."

Third Quarter 2011 Results

To date, we have primarily financed our operations through cash flows from operating activities, equity investments by certain of our founders, the sale of preferred shares in 2000 and our initial public offering in 2004. We have not financed our operations through significant borrowings, and as of December 31, 2010, we had no material debt obligations outstanding.

We believe that our current cash and cash flow from operations will be sufficient to meet our anticipated cash needs, including our cash needs for working capital and capital expenditures, for the foreseeable future. We may, however, require additional cash resources due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. As of December 31, 2010, we did not have any material commitment for capital expenditure.

First Quarter Results:

• Total revenues increased 27.6% over Q1 2010 to RMB324.5 million (US$49.6 million), exceeding the Company's guidance range of RMB305 million to RMB315 million
• Online recruitment services revenues increased 57.5% over Q1 2010 to RMB172.8 million (US$26.4 million)
• Gross margin expanded to 70.5% compared with 64.3% in Q1 2010
• Income from operations increased 77.0% over Q1 2010 to RMB108.1 million (US$16.5 million)
• Fully diluted earnings per common share were RMB1.55 (US$0.47 per ADS)
• Excluding share-based compensation expense and foreign currency translation loss as well as their related tax impact, non-GAAP adjusted fully diluted earnings per common share were RMB1.71 (US$0.52 per ADS), exceeding the Company's guidance range of RMB1.20 to RMB1.30

Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said, "We have continued to observe favorable market conditions and robust customer demand for our services thus far in 2011.  Our online recruitment business maintained a rapid growth rate as we achieved record revenues and transacted with a record number of unique employers in the first quarter.  Through operational discipline and improved efficiency, we also successfully drove margin expansion despite higher employee costs and investments for the long term.  We believe these strong first quarter results provide further confirmation that we are executing the right strategic plan to develop the most powerful brand in human resource services in China."

For the second quarter of 2011, based on current market and operating conditions, the Company's revenue target is in the estimated range of RMB325 million to RMB335 million (US$49.6 million to US$51.2 million).  Excluding share-based compensation expense and any foreign currency translation loss or gain as well as their related tax impact, the Company's non-GAAP fully diluted earnings target for the second quarter of 2011 is in the estimated range of RMB1.60 to RMB1.70 per common share (US$0.49 to US$0.52 per ADS).  The Company expects aggregate share-based compensation expense to increase in the second quarter of 2011 to approximately RMB10 million (US$1.5 million).

Fourth Quarter Highlights:

Third Quarter 2010 Financial Highlights:

• Total revenues increased 23.7% over Q3 2009 to RMB271.6 million (US$40.6 million), exceeding the Company's guidance range of RMB255 million to RMB265 million.

• Online recruitment services revenues increased 58.4% over Q3 2009 to RMB142.7 million (US$21.3 million).

• Gross margin expanded to 68.4% compared with 62.4% in Q3 2009.

• Operating income increased 72.0% to RMB68.9 million (US$10.3 million) compared with RMB40.1 million in Q3 2009.

• Fully diluted earnings per common share were RMB1.10 (US$0.33 per ADS).

• Excluding share-based compensation expense and foreign currency translation loss as well as their related tax impact, non-GAAP adjusted fully diluted earnings per common share were RMB1.26 (US$0.38 per ADS), exceeding the Company's guidance range of RMB0.95 to RMB1.05.
  

Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said, "Through the successful execution of our growth initiatives, we achieved record revenues and profits in the third quarter.  In our online business, we continued to aggressively acquire new corporate customers, expand our geographic sales coverage and introduce product innovations.  We also saw solid progress in the development of our other HR services area led by increasing customer adoption of our outsourcing services.  With this robust business momentum on our side, we remain focused on taking actions to extend our market leadership position, investing for our long-term growth and creating value for our shareholders."

Business Outlook

For the fourth quarter of 2010, based on current market and operating conditions, the Company's

• Revenue target is in the estimated range of RMB275 million to RMB285 million (US$41.1 million to US$42.6 million).

• Excluding share-based compensation expense and any foreign currency translation loss or gain as well as their related tax impact, the Company's non-GAAP fully diluted earnings target is in the estimated range of RMB1.00 to RMB1.10 per common share (US$0.30 to US$0.33 per ADS).  

• The Company expects aggregate share-based compensation expense in the fourth quarter of 2010 to be in the estimated range of RMB6 million to RMB7 million (US$0.9 million to US$1.0 million).

Commenting on the second results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said, 'Our aggressive cost and expense management and focus on business process efficiency improvements yielded tangible results in the second quarter. We successfully drove margin expansion and delivered solid earnings despite challenging market conditions which continued to impact customer demand and revenues. Although spending per customer declined, we were pleased to see regained momentum in new customer acquisitions for our online business in the second quarter. The decisions and progress we have made to strengthen our operations and enhance our resource allocation this year reinforce our commitment to achieve sustainable growth and profitability for our shareholders over the long term.'

"As we expected, market demand for recruitment services in the first quarter was significantly impacted by the global economic crisis and the slowdown of the Chinese economy. However, through cost control and financial discipline, we were able to maintain our track record of profitability and achieve better than forecasted earnings in the first quarter. We believe the measures we are currently undertaking to streamline our processes, increase productivity and more effectively allocate resources will strengthen our operations and position us for greater profitability and growth when market conditions improve.''

Guidance Report: 

Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, Inc., said, 'Hiring activity slowed materially in the fourth quarter as many corporate customers scaled back their recruitment efforts and cut spending in the face of worsening global economic conditions. The current market sentiment among employers in China continues to be highly cautious and we believe it will remain so throughout 2009 as companies navigate through these unprecedented and challenging times.'

First Quarter Fiscal 2009 Guidance Ending March

EPS Figures exclude non-operating gains and losses. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information.For a more complete explanation of the company's definition of non-GAAP please refer to their fourth Quarter financial press release.

Source: PR Newswire (March 3, 2009)