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China Customer Relations Centers, Inc. Announces Full Year 2015 Financial ResultsTAI'AN, China, April 29, 2016 /PRNewswire/ -- China Customer Relations Centers, Inc. (NASDAQ: CCRC) ("CCRC" or the "Company"), a leading call center business process outsourcing ("BPO") service provider in China, today announced its financial results for the year ended December 31, 2015. 2015 Year-to-Date Financial Highlights (all comparisons to prior year unless noted)
Mr. Gary Wang, Chairman and Chief Executive Officer of CCRC, commented, "We are very pleased to report strong financial results for the year of 2015 with revenues growing by 39.1% to $59.4 million and net income by 167.9% to $4.8 million, respectively, both were record highs since our inception." Mr. Wang continued, "While 2015 was clearly a banner year for CCRC, we expect the momentum to continue as our relationships with existing key clients continue to expand and believe that we will continue to attract new clients due to our increasing public and financial profile following our recent IPO. We believe the Chinese BPO market remains in the early stages of development and is highly fragmented compared to other developed countries, offering plenty of opportunities for us to continue to grow at a healthy rate through organic growth and selective acquisitions. We are excited about our trajectory and look forward to our future." Twelve Months Ended December 31, 2015 Financial Results
Revenues For the twelve months ended December 31, 2015, revenues increased by $16.7 million, or 39.1%, to $59.4 million from $42.7 million for the same period last year. This increase was mainly driven by the growth of our BPO business with increased sales to our existing BPO clients and sales to new BPO clients. The provincial subsidiaries of China Mobile and China Telecom remained our largest clients, contributing $26.7 million and $11.0 million in revenues, respectively, in 2015. We added several new BPO clients in 2015, including, Qunar (an online travel company), DIDI (a mobile taxi-calling company), Jiedaibao (an online lending platform) a subsidiary of Alibaba and S.F. Express. Gross profit and gross margin Cost of revenues consists primarily of salaries, payroll taxes and employee benefits costs of our customer service associates and other operations personnel. Cost of revenues also includes direct communications costs, rent expense, information technology costs, and facilities support. Cost of revenues increased by $11.7 million, or 33.3%, to $46.9 million for the twelve months ended December 31, 2015 from $35.2 million for the same period last year. As a percentage of revenues, cost of revenues was 79.0% for the twelve months ended December 31, 2015, compared to 82.5% for the same period last year. Gross profit increased by $5.0 million, or 66.5%, to $12.5 million for the twelve months ended December 31, 2015 from $7.5 million for the same period last year. Gross margin increased by 3.5% to 21.0% for the twelve months ended December 31, 2015 from 17.5% for the same period last year. The increase in gross margin was primarily due to improvement in overall operating efficiency and the termination of certain less profitable business. Operating income and operating margin Selling, general and administrative expenses increased by $1.5 million, or 25.4%, to $7.3 million for the twelve months ended December 31, 2015 from $5.8 million for the same period last year. We anticipate that our administrative expenses, particularly those related to support personnel costs, professional fees, as well as Sarbanes-Oxley compliance, will continue to increase in 2016 due to becoming a publically traded company. Income from operations increased by $3.5 million, or 205.5%, to $5.2 million for the twelve months ended December 31, 2015 from $1.7 million for the same period last year. Operating margin was 8.8% for the twelve months ended December 31, 2015, compared to 4.0% for the same period last year. The increase in operating income and operating margin was mainly driven by an increase in revenues as a result of expansion of our BPO business and improvement in gross margin as a result of improvement in overall operating efficiency. Government Grants We received government grants, which are discretionary and unpredictable in nature, of $1.0 million for the twelve months ended December 31, 2015, a decrease of $0.4 million, or 28.6%, from $1.4 million for the same period last year. Government grants as a percentage of net income were 21.5% and 80.8% for the twelve months ended December 31, 2015 and 2014, respectively. Income Taxes Provision for income taxes was $1.3 million for the twelve months ended December 31, 2015, an increase of $0.7 million, or 100.6%, from $0.6 million for the same period last year. We were entitled to a preferential enterprise income tax ("EIT") rate of 15% in 2014 and 2015. The standard enterprise income tax rate in China is 25%. Net Income Net income increased by $3.0 million, or 167.9%, to $4.8 million for the twelve months ended December 31, 2015 from $1.8 million for the same period last year. Earnings per basic and diluted share was $0.30 for the twelve months ended December 31, 2015, compared to $0.11 for the same period last year. Financial Conditions As of December 31, 2015, the Company had cash of $13.6 million, compared to $5.1 million at December 31, 2014. Total working capital was $16.1 million as of December 31, 2015, compared to $5.5 million at the end of 2014. Net cash provided by operating activities was $6.0 million for the twelve months ended December 31, 2015, compared to $0.5 million for the same period last year. Net cash used in investing activities was $2.0 million for the twelve months ended December 31, 2015, compared to $1.3 million for the same period last year. Net cash provided by financing activities was $4.8 million for the twelve months ended December 31, 2015, compared to $0.2 million for the same period last year. The Company raised $8.5 million in net proceeds through an initial public offering of its common shares in December 2015. Notice Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding. About China Customer Relations Centers, Inc. The Company is a BPO service provider focusing on the complex, voice-based segment of customer care services, including:
The Company's service is currently delivered from 11 call center locations in Shandong Province, Jiangsu Province, Hebei Province, Anhui Province, the Xinjiang Uygur Autonomous Region, the Guangxi Zhuang Autonomous Region, Jiangxi Province and Chongqing City, with a capacity approximately of 9,053 seats. Forward-Looking Statement This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Specifically, the Company's statements regarding (i) the future generation of financial growth from the Company's anticipated execution of its business plan, and (ii) anticipated ability to obtain new clients are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the call center business process outsourcing market in China; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. For more information, please contact: Tina Xiao
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/china-customer-relations-centers-inc-announces-full-year-2015-financial-results-300260192.html SOURCE China Customer Relations Centers, Inc. |