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Wall Street Transcript Interview with Christine Lu-Wong, the CFO of Xueda Education Group (XUE)

67 WALL STREET, New York - August 30, 2013 - The Wall Street Transcript has just published its Education Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Gainful Employment Clarification - Enrollment and Retention Trends - Economic Recovery and Enrollment Trends - Growth Drivers in Chinese Education Sector

Companies include: Xueda Education Group (XUE) and many more.

In the following excerpt from the Education Report, the CFO of Xueda Education Group (XUE) discusses company strategy and the outlook for this vital industry:

TWST: I understand the company is shifting focus away from market expansion and toward profitability. What is the company doing to boost profitability, and what has been accomplished so far?

Ms. Lu-Wong: To frame how we have grown in recent years, I'll cite growth in four critical areas: service network, student enrollment, course hours delivered and financial performance.

First, service network: As mentioned earlier, we now operate nearly 400 learning centers nationwide, serving customers in 28 provinces and 73 cities. It is a geographically well-balanced base.

Second, student enrollment: We've increased the number of students served from approximately 89,000 in 2010, to approximately 139,000 in 2012. That is an approximate 56% increase in students served.

Third, course hours delivered: We've increased from approximately 7 million hours delivered in 2010, to approximately 10.6 million hours delivered in 2012.

And lastly, fourth, financial performance: Our net revenues have increased significantly, from U.S. $154.1 million in 2010 to U.S. $293.2 million in 2012. That represents a CAGR of 37.9%.

So it is against this backdrop of strong growth that we are now focusing on two key efficiency metrics to drive profitability: labor efficiency and space efficiency. We outlined these metrics to investors at the start of the year, and these metrics serve as cornerstones in our profitability strategy. Simply stated, by concentrating on ways to increase the number of course hours delivered per full-time instructor and to increase the number of course hours delivered per learning center square meter, we drive more profitability to the bottom line. In the second quarter of 2013 our labor utilization rate increased 9% year over year, and our space utilization rate increased 7.6% from the same time last year. These are the significant year-over-year gains.

Here's an example that illustrates how enhanced efficiency is propelling profitability. In the second quarter of 2013 we...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.