Quarterly Net Revenues Increased by 26.2%
Year-Over-Year
Quarterly Student Enrollments Increased by 5.9%
Year-Over-Year
Quarterly Operating Income Increased by 36.0%
Year-Over-Year
Quarterly Net Income Attributable to New Oriental Increased
by 39.6% Year-Over-Year
BEIJING, April 24, 2017 /PRNewswire/ -- New Oriental
Education and Technology Group Inc. (the "Company" or "New
Oriental") (NYSE: EDU), the largest provider of private educational
services in China, today announced
its unaudited financial results for the third fiscal quarter ended
February 28, 2017, which is the third
quarter of New Oriental's fiscal year 2017.
Financial Highlights for the Third Fiscal Quarter Ended
February 28, 2017
- Total net revenues increased by 26.2% year-over-year to
US$437.8 million.
- Operating income increased by 36.0% year-over-year to
US$57.5 million.
- Net income attributable to New Oriental increased by 39.6%
year-over-year to US$67.6
million.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
3Q
FY2017
|
3Q
FY2016
|
% of
change
|
Net
revenues
|
437,849
|
346,912
|
26.2%
|
Operating
income
|
57,515
|
42,297
|
36.0%
|
Non-GAAP operating
income (2)(3)
|
65,784
|
46,743
|
40.7%
|
Net income
attributable to New Oriental
|
67,619
|
48,442
|
39.6%
|
Non-GAAP net income
attributable to New Oriental (2)(3)
|
75,888
|
52,888
|
43.5%
|
Net income per ADS
attributable to New Oriental - basic
|
0.43
|
0.31
|
39.0%
|
Net income per ADS
attributable to New Oriental - diluted
|
0.43
|
0.31
|
39.3%
|
Non-GAAP net income
per ADS attributable to New Oriental
- basic(3)(4)
|
0.48
|
0.34
|
42.9%
|
Non-GAAP net income
per ADS attributable to New Oriental
- diluted(3)(4)
|
0.48
|
0.34
|
43.2%
|
(in thousands US$,
except per ADS(1) data)
|
9M
FY2017
|
9M
FY2016
|
% of
change
|
Net
revenues
|
1,313,156
|
1,083,483
|
21.2%
|
Operating
income
|
210,313
|
161,744
|
30.0%
|
Non-GAAP operating
income(2)(3)
|
221,628
|
174,922
|
26.7%
|
Net income
attributable to New Oriental
|
219,041
|
182,868
|
19.8%
|
Non-GAAP net income
attributable to New Oriental(2)(3)
|
230,356
|
196,046
|
17.5%
|
Net income per ADS
attributable to New Oriental - basic
|
1.39
|
1.17
|
19.2%
|
Net income per ADS
attributable to New Oriental - diluted
|
1.39
|
1.16
|
19.4%
|
Non-GAAP net income
per ADS attributable to New Oriental
- basic(3)(4)
|
1.46
|
1.25
|
16.9%
|
Non-GAAP net income
per ADS attributable to New Oriental
- diluted(3)(4)
|
1.46
|
1.25
|
17.1%
|
(1) Each
ADS represents one common share.
|
(2) GAAP
represents Generally Accepted Accounting Principles in the United
States of America.
|
(3) New
Oriental provides net income attributable to New Oriental,
operating income and net income per ADS attributable to New
Oriental on a non-GAAP basis that excludes share-based compensation
expenses to provide supplemental information regarding its
operating performance. For more information on these non-GAAP
financial measures, please see the section captioned "About
Non-GAAP Financial Measures" and the tables captioned
"Reconciliations of Non-GAAP Measures to the Most Comparable GAAP
Measures" set forth at the end of this release.
|
(4) The
non-GAAP net income per ADS is computed using non-GAAP net income
and the same number of shares and ADSs used in GAAP basic and
diluted EPS calculation.
|
Operating Highlights for the Third Fiscal Quarter Ended
February 28, 2017
- Total student enrollments in academic subjects tutoring and
test preparation courses increased by 5.9% year-over-year to
approximately 799,700 for the third fiscal quarter of 2017.
- The total number of schools and learning centers was 803 as of
February 28, 2017, an increase of 76
compared to 727 as of February 29,
2016, and an increase of 14 compared to 789 as of
November 30, 2016. The total number
of schools was 73 as of February 28,
2017.
Michael Minhong Yu, New
Oriental's Executive Chairman, commented, "We are very pleased to
deliver another strong quarter. We achieved both accelerated
top-line growth and continued solid bottom-line performance in the
third fiscal quarter, reflecting consistent progress in improving
our product mix and brand recognition and a continued focus on
optimizing operations across the business. Total net revenue growth
was 26.2%, or 33.4% if computed using our functional currency
Renminbi, which was ahead of expectations. The main driving force
for this was the significant increase in student enrollments in the
recent two quarters, which reached a year-over-year growth of 32%
for the second and third quarters of fiscal year 2017. For our key
revenue driver, K-12 all-subjects after-school tutoring business,
the year-to-date 2017 momentum has been strong and continuing, with
the revenue up approximately 41%, or 49% if computed using our
functional currency Renminbi. Furthermore, our U-Can middle and
high school all-subjects after-school tutoring business recorded
revenue growth of approximately 36%, and the POP Kids program grew
by approximately 52% year-over-year. It is also encouraging to see
a continuing strong momentum in enrollments and RMB cash proceeds
from student registrations in the first seven weeks of the fourth
fiscal quarter, which grew by approximately 37% and 39%
year-over-year."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "As we remain committed to our now
well-proven "Optimize-the-Market" strategy, we have continued to
make great strides in building out our online and offline
integrated education ecosystem. During the third fiscal quarter, we
added a net of ten learning centers in existing cities, opened a
new kindergarten in Beijing, and
rolled out three dual-teacher model schools in the city of Kaifeng,
Cangzhou and Qinhuangdao in order to bring our offerings to more
remote areas in China. Altogether,
these added a total of approximately 71,100 square meters of
classroom area, representing approximately 6% capacity expansion.
At the same time, we continued to roll out the well-proven O2O
integrated education system, including the new POP Kids program and
U-Can Visible Progress System, in all existing cities, and
continued to test the new O2O system for overseas test preparation
business, including IELTS, TOEFL and SAT programs, in seven large
cities in China. In addition, our
pure online education platform, Koolearn.com, recorded a revenue
growth of 19% year-over-year, with a 92% increase in paid
users."
Stephen Zhihui Yang, New
Oriental's Chief Financial Officer, commented, "We continued to
make great progress in increasing operational efficiency, improving
utilization of facilities and enhancing cost control in the
quarter. Operating margin increased 90 basis points and net margin
increased 140 basis points year-over-year. The continued strong
bottom-line performance demonstrates the result of our consistent
effort in creating sustainable long-term value for our customers
and shareholders."
Recent Development
In March 2017, New Oriental
announced that Beijing New Oriental Xuncheng Network Technology
Co., Ltd. ("Xun Cheng"), an
consolidated entity of the Company operating the Company's online
education platform, Koolearn.com, had received the approval from
the National Equities Exchange and Quotations Co., Ltd. of the
listing of Xun Cheng's shares on the
National Equities Exchange and Quotations (the "NEEQ") in
China. Xun
Cheng's shares started trading on the NEEQ on March 21, 2017. New Oriental will continue to
consolidate the financial results of Xun
Cheng after the listing.
Financial Results for the Third Fiscal Quarter Ended
February 28, 2017
Net Revenues
For the third fiscal quarter of 2017, New Oriental reported net
revenues of US$437.8 million,
representing a 26.2% increase year-over-year. Net revenues from
educational programs and services for the third fiscal quarter were
US$394.8 million, representing a
26.0% increase year-over-year. The growth was mainly driven by
increases in student enrollments in academic subjects tutoring and
test preparation courses in the recent two quarters. As the
registration for the 2017 winter and spring semester was
concentrated in the last month of the second fiscal quarter, it
contributed an exceptional 56% year-over-year enrollment growth in
the period. Following that, student enrollment continued to grow by
5.9% year-over-year in the third fiscal quarter. The combined
enrollment growth for the second and third quarter reached 32%.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$380.3 million, representing a 24.9% increase
year-over-year. Non-GAAP operating costs and expenses for the
quarter, which exclude share-based compensation expenses, were
US$372.1 million, representing a
24.0% increase year-over-year.
- Cost of revenues increased by 26.5% year-over-year to
US$183.6 million, primarily due to
increases in teachers' compensation for more teaching hours.
- Selling and marketing expenses increased by 24.2%
year-over-year to US$55.9 million,
primarily due to increases in brand promotion expenses.
- General and administrative expenses for the quarter
increased by 23.0% year-over-year to US$140.9 million. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, were US$132.6 million,
representing a 20.4% increase year-over-year, primarily due to
increased headcount as the Company expanded its network of schools
and learning centers by about 10% year-over-year.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, increased by 86.0% to
US$8.3 million in the third fiscal
quarter of 2017.
Operating Income and Operating Margin
Operating income for the quarter was US$57.5 million, a 36.0% increase from
US$42.3 million in the same period of
the prior fiscal year. Non-GAAP income from operations for the
quarter was US$65.8 million, a 40.7%
increase from US$46.7 million in the
same period of the prior fiscal year.
Operating margin for the quarter was 13.1%, compared to 12.2% in
the same period of the prior fiscal year. Non-GAAP operating
margin, which excludes share-based compensation expenses, for the
quarter was 15.0%, compared to 13.5% in the same period of the
prior fiscal year.
Net Income and EPS
Net income attributable to New Oriental for the quarter was
US$67.6 million, representing a 39.6%
increase from the same period of the prior fiscal year. Basic and
diluted earnings per ADS attributable to New Oriental were
US$0.43 and US$0.43, respectively.
Non-GAAP Net Income and Non-GAAP EPS
Non-GAAP net income attributable to New Oriental for the quarter
was US$75.9 million, representing a
43.5% increase from the same period of the prior fiscal year.
Non-GAAP basic and diluted earnings per ADS attributable to New
Oriental were US$0.48 and
US$0.48, respectively.
Cash Flow
Net operating cash flow for the third fiscal quarter of 2017 was
approximately US$101.0 million.
Capital expenditures for the quarter were US$24.0 million, which were primarily
attributable to the opening of four new schools and 30 learning
centers and renovations at existing learning centers.
Balance Sheet
As of February 28, 2017, New
Oriental had cash and cash equivalents of US$535.9 million, compared to US$520.7 million as of November 30, 2016. In addition, the Company had
US$183.1 million in term deposits,
US$1,251.6 million in short-term
investments.
New Oriental's deferred revenue balance, which is cash collected
from registered students for courses and recognized proportionally
as revenue as the instructions are delivered, at the end of the
third quarter of fiscal year 2017 was US$760.5 million, an increase of 29.9% compared
to US$585.3 million at the end of the
third quarter of fiscal year 2016.
Financial Results for the Nine Months Ended February 28, 2017
For the first nine months of fiscal year 2017, New Oriental
reported net revenues of US$1,313.2
million, representing a 21.2% increase year-over-year.
Total student enrollments in academic subjects tutoring and test
preparation courses in the first nine months of fiscal year 2017
increased by 31.9% to approximately 3,438,300.
Income from operations for the first nine months of fiscal year
2017 was US$210.3 million,
representing a 30.0% increase year-over-year. Non-GAAP income from
operations for the first nine months of fiscal year 2017 was
US$221.6 million, representing a
26.7% increase year-over-year.
Operating margin for the first nine months of fiscal year 2017
was 16.0 %, compared to 14.9 % for the same period of the prior
fiscal year. Non-GAAP operating margin, which excludes share-based
compensation expenses for the first nine months of fiscal year
2017, was 16.9%, compared to 16.1% for the same period of the prior
fiscal year.
Net income attributable to New Oriental for the first nine
months of fiscal year 2017 was US$219.0
million, representing a 19.8% increase year-over-year. Basic
and diluted net income per ADS attributable to New Oriental for the
first nine months of fiscal year 2017 amounted to US$1.39 and US$1.39, respectively.
Non-GAAP net income attributable to New Oriental for the first
nine months of fiscal year 2017 was US$230.4
million, representing a 17.5% increase year-over-year.
Non-GAAP basic and diluted net income per ADS attributable to New
Oriental for the first nine months of fiscal year 2017 amounted to
US$1.46 and US$1.46, respectively.
Outlook for Fourth Quarter of Fiscal Year 2017
New Oriental expects total net revenues in the fourth quarter of
fiscal year 2017 (March 1, 2017 to
May 31, 2017) to be in the range of
US$465.1 million to US$479.9 million,
representing year-over-year growth in the range of 18% to 22%.
The projected growth rate of net revenues in our functional
currency Renminbi is expected to be in the range of 25% to 29% for
the fourth quarter of fiscal year 2017.
This forecast reflects New Oriental's current and preliminary
view, which is subject to change.
Conference Call Information
New Oriental's management will host an earnings conference call
at 8 AM on April 24, 2017, U.S. Eastern Time (8 PM on April 24,
2017, Beijing/Hong Kong
Time).
Dial-in details for the earnings conference call are as
follows:
US:
|
+1-845-675-0437
|
Hong
Kong:
|
+852-3018-6771
|
UK:
|
+44-20-3621-4779
|
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call. The passcode is "New
Oriental Earnings Call."
A replay of the conference call may be accessed by phone at the
following number until May 2,
2017:
International:
|
+61-2-8199-0299
|
Passcode:
|
89318840
|
Additionally, a live and archived webcast of the conference call
will be available at http://investor.neworiental.org.
About New Oriental
New Oriental is the largest provider of private educational
services in China based on the
number of program offerings, total student enrollments and
geographic presence. New Oriental offers a wide range of
educational programs, services and products consisting primarily of
English and other foreign language training, test preparation
courses for major admissions and assessment tests in the United States, the PRC and Commonwealth
countries, primary and secondary school education, development and
distribution of educational content, software and other technology,
and online education. New Oriental's ADSs, each of which represents
one common share, currently trade on the New York Stock Exchange
under the symbol ''EDU.''
For more information about New Oriental, please visit
http://www.neworiental.org/english/.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the outlook for the third quarter of fiscal year 2017, quotations
from management in this announcement, as well as New Oriental's
strategic and operational plans, contain forward-looking
statements. New Oriental may also make written or oral
forward-looking statements in its reports filed or furnished to the
U.S. Securities and Exchange Commission, in its annual reports to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about New Oriental's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: our ability to attract students without a significant
decrease in course fees; our ability to continue to hire, train and
retain qualified teachers; our ability to maintain and enhance our
"New Oriental" brand; our ability to effectively and efficiently
manage the expansion of our school network and successfully execute
our growth strategy; the outcome of ongoing, or any future,
litigation or arbitration, including those relating to copyright
and other intellectual property rights; competition in the private
education sector in China; changes in our revenues and certain cost
or expense items as a percentage of our revenues; the expected
growth of the Chinese private education market; Chinese
governmental policies relating to private educational services and
providers of such services; health epidemics and other outbreaks in
China; and general economic conditions in China. Further
information regarding these and other risks is included in our
annual report on Form 20-F and other documents filed with the
Securities and Exchange Commission. New Oriental does not undertake
any obligation to update any forward-looking statement, except as
required under applicable law. All information provided in this
press release and in the attachments is as of the date of this
press release, and New Oriental undertakes no duty to update such
information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement New Oriental's consolidated financial results
presented in accordance with GAAP, New Oriental uses the following
measures defined as non-GAAP financial measures by the SEC: net
income excluding share-based compensation expenses, operating
income excluding share-based compensation expenses, operating costs
and expenses excluding share-based compensation expenses, general
and administrative expenses excluding share-based compensation
expenses, operating margin excluding share-based compensation
expenses, and basic and diluted net income per ADS and per share
excluding share-based compensation expenses. The presentation of
these non-GAAP financial measures is not intended to be considered
in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP. For more
information on these non-GAAP financial measures, please see the
tables captioned "Reconciliations of Non-GAAP Measures to the Most
Comparable GAAP Measures" set forth at the end of this release.
New Oriental believes that these non-GAAP financial measures
provide meaningful supplemental information regarding its
performance and liquidity by excluding share-based compensation
expenses that may not be indicative of its operating performance
from a cash perspective. New Oriental believes that both management
and investors benefit from referring to these non-GAAP financial
measures in assessing its performance and when planning and
forecasting future periods. These non-GAAP financial measures also
facilitate management's internal comparisons to New Oriental's
historical performance and liquidity. New Oriental computes its
non-GAAP financial measures using the same consistent method from
quarter to quarter. New Oriental believes these non-GAAP financial
measures are useful to investors in allowing for greater
transparency with respect to supplemental information used by
management in its financial and operational decision making. A
limitation of using these non-GAAP measures is that they exclude
share-based compensation charge that has been and will continue to
be for the foreseeable future a significant recurring expense in
our business. Management compensates for these limitations by
providing specific information regarding the GAAP amounts excluded
from each non-GAAP measure. The accompanying tables have more
details on the reconciliations between GAAP financial measures that
are most directly comparable to non-GAAP financial measures.
Contacts
For investor and media inquiries, please contact:
In China:
Ms. Cara O'Brien
FTI Consulting
Tel: +852-3768-4537
Email: cara.obrien@fticonsulting.com
Ms. Sisi Zhao
New Oriental Education and Technology Group Inc.
Tel: +86-10-6260-5568
Email: zhaosisi@xdf.cn
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
As of February
28
|
|
As of November
30
|
2017
|
|
2016
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
RMB
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
535,929
|
|
520,689
|
Restricted cash,
current
|
56
|
|
44
|
Term
deposits
|
183,082
|
|
143,717
|
Short term
investments
|
1,251,558
|
|
1,233,881
|
Accounts receivable,
net
|
3,162
|
|
3,091
|
Inventory
|
28,168
|
|
30,190
|
Prepaid expenses and
other current assets
|
118,916
|
|
122,574
|
Amounts due from
related parties, current
|
5,537
|
|
5,091
|
Total current
assets
|
2,126,408
|
|
2,059,277
|
|
|
|
|
Property, plant and
equipment, net
|
259,446
|
|
249,641
|
Land use rights,
net
|
3,664
|
|
3,681
|
Amounts due from
related parties, non-current
|
1,819
|
|
1,763
|
Deferred tax assets,
non-current
|
22,932
|
|
16,084
|
Long term
deposit
|
21,505
|
|
18,672
|
Long term prepaid
rent
|
356
|
|
284
|
Restricted cash,
non-current
|
3,679
|
|
3,737
|
Intangible
assets
|
4,347
|
|
1,992
|
Goodwill
|
15,634
|
|
10,079
|
Long term
investments
|
195,397
|
|
203,350
|
Other non-current
assets
|
4,223
|
|
1,598
|
Total
assets
|
2,659,410
|
|
2,570,158
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
(including accounts payable of the
consolidated VIE without recourse to New Oriental of US$26,925
and US$21,382 as of November 30, 2016 and February 28, 2017,
respectively)
|
21,416
|
|
27,024
|
Accrued expenses and
other current liabilities (including accrued
expenses and other current liabilities of the consolidated VIE
without recourse to New Oriental of US$174,968 and US$196,141
as of November 30, 2016 and February 28, 2017,
respectively)
|
220,515
|
|
190,900
|
Income taxes payable
(including income tax payable of the
consolidated VIE without recourse to New Oriental of US$35,291
and US$39,085 as of November 30, 2016 and February 28, 2017,
respectively)
|
43,460
|
|
37,276
|
Amounts due to
related parties (including amounts due to related
parties of the consolidated VIE without recourse to New
Oriental
of US$41 and US$49 as of November 30, 2016 and February 28,
2017, respectively)
|
49
|
|
41
|
Deferred revenue
(including deferred revenue of the
consolidated VIE without recourse to New Oriental of
US$759,045 and US$755,623 as of November 30, 2016 and
February 28, 2017, respectively)
|
760,521
|
|
764,696
|
|
|
|
|
Total current
liabilities
|
1,045,961
|
|
1,019,937
|
|
|
|
|
Deferred tax
liabilities (including deferred tax liabilities of the
consolidated VIE without recourse to New Oriental of US$1,333
and US$2,262 as of November 30, 2016 and February 28, 2017,
respectively)
|
2,311
|
|
1,735
|
|
|
|
|
Total long-term
liabilities
|
2,311
|
|
1,735
|
|
|
|
|
Total
liabilities
|
1,048,272
|
|
1,021,672
|
|
|
|
|
Noncontrolling
interests
|
36,810
|
|
34,893
|
|
|
|
|
Total New
Oriental Education & Technology Group Inc. shareholders'
equity
|
1,574,328
|
|
1,513,593
|
|
|
|
|
Total
shareholders' equity
|
1,611,138
|
|
1,548,486
|
|
|
|
|
Total liabilities
and shareholders' equity
|
2,659,410
|
|
2,570,158
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
|
For the Three
Months
Ended February 28
|
|
For the Three
Months
Ended February 29
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
Revenues:
|
|
|
|
Educational programs
and services
|
394,797
|
|
313,251
|
Books and
others
|
43,052
|
|
33,661
|
Total net
revenues
|
437,849
|
|
346,912
|
|
|
|
|
Operating costs
and expenses (note 1):
|
|
|
|
Cost of
revenues
|
183,551
|
|
145,045
|
Selling and
marketing
|
55,882
|
|
44,989
|
General and
administrative
|
140,901
|
|
114,581
|
Total operating
costs and expenses
|
380,334
|
|
304,615
|
Operating
Income
|
57,515
|
|
42,297
|
|
|
|
|
Other income,
net
|
19,750
|
|
16,125
|
|
|
|
|
Provision for income
taxes
|
(10,583)
|
|
(8,515)
|
Loss from equity
method investments
|
(260)
|
|
(1,137)
|
Net
income
|
66,422
|
|
48,770
|
|
|
|
|
Net loss (gain)
attributable to the noncontrolling interests
|
1,197
|
|
(328)
|
|
|
|
|
Net income
attributable to New Oriental Education &
Technology Group Inc.
|
67,619
|
|
48,442
|
|
|
|
|
|
|
|
|
Net income per
share attributable to New Oriental-
Basic
|
0.43
|
|
0.31
|
|
|
|
|
Net income per
share attributable to New Oriental-
Diluted
|
0.43
|
|
0.31
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Basic
(note 2)
|
0.43
|
|
0.31
|
|
|
|
|
Net income per ADS
attributable to New Oriental-
Diluted (note 2)
|
0.43
|
|
0.31
|
|
|
|
|
Other comprehensive
loss, net of tax
|
(9,999)
|
|
(30,695)
|
Comprehensive
income
|
56,423
|
|
18,075
|
Comprehensive
income attributable to New Oriental
Education & Technology Group Inc.
|
57,702
|
|
18,076
|
Notes:
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in
the operating costs and expenses as follows:
|
|
|
|
|
|
For the Three
Months
Ended February 28
|
|
For the Three
Months
Ended February 29
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
General and
administrative
|
8,269
|
|
4,446
|
Total
|
8,269
|
|
4,446
|
|
|
Note 2: Each ADS
represents one common share.
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATION OF
NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP
MEASURES
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
For the Three
Months
Ended February 28
|
|
For the Three
Months
Ended February 29
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
140,901
|
|
114,581
|
Share-based
compensation expense in general
and administrative expenses
|
8,269
|
|
4,446
|
Non-GAAP general and
administrative
expenses
|
132,632
|
|
110,135
|
|
|
|
|
Total operating costs
and expenses
|
380,334
|
|
304,615
|
Share-based
compensation expenses
|
8,269
|
|
4,446
|
Non-GAAP operating
costs and expenses
|
372,065
|
|
300,169
|
|
|
|
|
Operating
income
|
57,515
|
|
42,297
|
Share-based
compensation expenses
|
8,269
|
|
4,446
|
Non-GAAP operating
income
|
65,784
|
|
46,743
|
|
|
|
|
Operating
margin
|
13.1%
|
|
12.2%
|
Non-GAAP operating
margin
|
15.0%
|
|
13.5%
|
|
|
|
|
Net income
attributable to New Oriental
|
67,619
|
|
48,442
|
Share-based
compensation expenses
|
8,269
|
|
4,446
|
Non-GAAP net
income
|
75,888
|
|
52,888
|
|
|
|
|
Net income per ADS
attributable to New
Oriental- Basic (note 2)
|
0.43
|
|
0.31
|
Net income per ADS
attributable to New
Oriental- Diluted (note 2)
|
0.43
|
|
0.31
|
|
|
|
|
Non-GAAP net income
per ADS attributable
to New Oriental - Basic (note 2)
|
0.48
|
|
0.34
|
Non-GAAP net income
per ADS attributable
to New Oriental - Diluted (note 2)
|
0.48
|
|
0.34
|
|
|
|
|
Weighted average
shares used in calculating
basic net income per ADS (note 2)
|
157,607,555
|
|
156,932,343
|
Weighted average
shares used in calculating
diluted net income per ADS (note 2)
|
158,039,414
|
|
157,721,515
|
|
|
|
|
Non-GAAP income per
share - basic
|
0.48
|
|
0.34
|
Non-GAAP income per
share - diluted
|
0.48
|
|
0.34
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
|
For the Nine
Months
Ended February 28
|
|
For the Nine
Months
Ended February 29
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
Revenues:
|
|
|
|
Educational programs
and services
|
1,201,297
|
|
987,127
|
Books and
others
|
111,859
|
|
96,356
|
Total net
revenues
|
1,313,156
|
|
1,083,483
|
|
|
|
|
Operating costs
and expenses (note 1):
|
|
|
|
Cost of
revenues
|
550,329
|
|
450,931
|
Selling and
marketing
|
166,519
|
|
138,511
|
General and
administrative
|
385,995
|
|
332,297
|
Total operating
costs and expenses
|
1,102,843
|
|
921,739
|
Operating
income
|
210,313
|
|
161,744
|
|
|
|
|
Other income,
net
|
49,681
|
|
51,620
|
|
|
|
|
Provision for income
taxes
|
(36,164)
|
|
(26,909)
|
Loss from equity
method investments
|
(2,943)
|
|
(3,221)
|
Net
income
|
220,887
|
|
183,234
|
|
|
|
|
Net (gain)
attributable to the noncontrolling interests
|
(1,846)
|
|
(366)
|
|
|
|
|
Net income
attributable to New Oriental Education &
Technology Group Inc.
|
219,041
|
|
182,868
|
|
|
|
|
|
|
|
|
Net income per
share attributable to New Oriental-
Basic
|
1.39
|
|
1.17
|
|
|
|
|
Net income per
share attributable to New Oriental-
Diluted
|
1.39
|
|
1.16
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Basic
(note 2)
|
1.39
|
|
1.17
|
|
|
|
|
Net income per ADS
attributable to New Oriental-
Diluted (note 2)
|
1.39
|
|
1.16
|
|
|
|
|
Other comprehensive
loss, net of tax
|
(58,814)
|
|
(51,620)
|
Comprehensive
income
|
162,073
|
|
131,614
|
Comprehensive
income attributable to New Oriental
Education & Technology Group Inc.
|
158,806
|
|
131,577
|
Notes:
|
|
|
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the
operating costs and expenses as follows:
|
|
|
|
|
|
For the Nine
Months
Ended February 28
|
|
For the Nine
Months
Ended February 29
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
General and
administrative
|
11,315
|
|
13,178
|
Total
|
11,315
|
|
13,178
|
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
|
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATION OF
NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP
MEASURES
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
For the Nine
Months
Ended February 28
|
|
For the Nine
Months
Ended February 29
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
385,995
|
|
332,297
|
Share-based
compensation expense in
general and administrative expenses
|
11,315
|
|
13,178
|
Non-GAAP general and
administrative
expenses
|
374,680
|
|
319,119
|
|
|
|
|
Total operating costs
and expenses
|
1,102,843
|
|
921,739
|
Share-based
compensation expenses
|
11,315
|
|
13,178
|
Non-GAAP operating
costs and
expenses
|
1,091,528
|
|
908,561
|
|
|
|
|
Operating
income
|
210,313
|
|
161,744
|
Share-based
compensation expenses
|
11,315
|
|
13,178
|
Non-GAAP operating
income
|
221,628
|
|
174,922
|
|
|
|
|
Operating
margin
|
16.0%
|
|
14.9%
|
Non-GAAP operating
margin
|
16.9%
|
|
16.1%
|
|
|
|
|
Net income
attributable to New Oriental
|
219,041
|
|
182,868
|
Share-based
compensation expenses
|
11,315
|
|
13,178
|
Non-GAAP net
income
|
230,356
|
|
196,046
|
|
|
|
|
Net income per ADS
attributable to
New Oriental- Basic (note 2)
|
1.39
|
|
1.17
|
Net income per ADS
attributable to
New Oriental- Diluted (note 2)
|
1.39
|
|
1.16
|
|
|
|
|
Non-GAAP net income
per ADS
attributable to New Oriental - Basic
(note 2)
|
1.46
|
|
1.25
|
Non-GAAP net income
per ADS
attributable to New Oriental - Diluted
(note 2)
|
1.46
|
|
1.25
|
|
|
|
|
Weighted average
shares used in
calculating basic net income per ADS
(note 2)
|
157,508,173
|
|
156,721,538
|
Weighted average
shares used in
calculating diluted net income per ADS
(note 2)
|
157,910,916
|
|
157,342,880
|
|
|
|
|
Non-GAAP income per
share - basic
|
1.46
|
|
1.25
|
Non-GAAP income per
share - diluted
|
1.46
|
|
1.25
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-third-fiscal-quarter-ended-february-28-2017-300444037.html
SOURCE New Oriental Education and Technology Group Inc.