Wednesday, July 21, 2010

HQ Global Education, Inc. (HQGE.OB) Reports Record Third Quarter Results

HQ Global Education Inc. provides customized training services to students through running its own private schools or cooperating with selected vocational schools in China. It is one of the leading providers of vocational education in China. By providing full-scale educational as well as job placement services, the company generates a recurring revenue stream. As of May 31, 2010, it operated 10 vocational schools and had more than 34,000 students from 22 Chinese provinces.

The company today announced record results for its third quarter and nine months ended May 31, 2010. Revenues in the company’s third fiscal quarter grew by 80.73% to $17.24 million from $9.5 million last year. Net income climbed to $5.5 million from $2.44 million the prior year. Earnings per share in the third quarter came in at $0.17 per share versus $0.15 per share in the same period last year.

HQ Global Education explained that much of the revenue gain in this year’s third quarter came as a result of the calendar. The 2010 second semester for its schools began this year on March 1st, as opposed to February 12th last year. This was due to the timing of the Chinese New Year.

Through the first nine months of the fiscal year, revenues grew 19% to $37.1 million compared with $31.1 million last year. Net income for the first nine months of this year was $11.7 million, a better than 20.5% gain from $9.72 million last year. Earnings per share for the nine months ended May 31, 2010 came in at $0.46 on 25,673,993 shares versus $0.47 on 20,500,000 shares last year.

HQ Global Education was pleased with its overall progress in the first nine months of 2010 and pointed to the increase in the number of schools it operated and student enrollment. The number of students enrolled in the company’s schools rose to 34,477 in the 2010 second semester versus 29,883 in the same period last year.

The chairman and CEO of the company, Guangwen He, stated “We anticipate contributions to our bottom line from new school additions…in a period of continuing strong demand for our well-trained graduates.” For more information on the company, please visit its website at www.hq-education.com.

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