BEIJING, April 23, 2019 /PRNewswire/ -- New Oriental
Education & 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, 2019, which is the third
quarter of New Oriental's fiscal year 2019.
Financial Highlights for the Third Fiscal Quarter Ended
February 28, 2019
- Total net revenues increased by 28.9% year-over-year to
US$796.7 million for the third fiscal
quarter of 2019.
- Operating income increased by 64.1% year-over-year to
US$95.8 million for the third fiscal
quarter of 2019.
- Non-GAAP operating income, which excludes share-based
compensation expenses, was US$113.8
million, an increase of 40.2% year-over-year compared to
US$81.2 million in the same period of
the prior fiscal year.
- Net income attributable to New Oriental increased by 42.5%
year-over-year to US$97.4 million for
the third fiscal quarter of 2019.
- Non-GAAP net income attributable to New Oriental, which
excludes share-based compensation expenses and gain from fair value
change of long-term investments, was US$108.9 million, an increase of 19.4%
year-over-year compared to US$91.2
million in the same period of the prior fiscal year.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
3Q
FY2019
|
3Q
FY2018
|
% of
change
|
Net
revenues
|
796,722
|
618,081
|
28.9%
|
Operating
income
|
95,780
|
58,367
|
64.1%
|
Non-GAAP operating
income (2)(3)
|
113,769
|
81,156
|
40.2%
|
Net
income attributable to New Oriental
|
97,411
|
68,376
|
42.5%
|
Non-GAAP net income
attributable to New Oriental (2)(3)
|
108,873
|
91,165
|
19.4%
|
Net income per ADS
attributable to New Oriental - basic
|
0.62
|
0.43
|
42.6%
|
Net income per ADS
attributable to New Oriental - diluted
|
0.61
|
0.43
|
42.3%
|
Non-GAAP net income
per ADS attributable to New Oriental -
basic(3)(4)
|
0.69
|
0.58
|
19.6%
|
Non-GAAP net income
per ADS attributable to New Oriental -
diluted(3)(4)
|
0.69
|
0.57
|
19.3%
|
(in thousands US$,
except per ADS(1) data)
|
9M
FY2019
|
9M
FY2018
|
% of
change
|
Net
revenues
|
2,253,640
|
1,746,429
|
29.0%
|
Operating
income
|
228,562
|
206,374
|
10.8%
|
Non-GAAP operating
income(2)(3)
|
274,158
|
241,602
|
13.5%
|
Net
income attributable to New Oriental
|
194,817
|
231,048
|
-15.7%
|
Non-GAAP net income
attributable to New Oriental(2)(3)
|
316,005
|
266,276
|
18.7%
|
Net income per ADS
attributable to New Oriental - basic
|
1.23
|
1.46
|
-15.9%
|
Net income per ADS
attributable to New Oriental - diluted
|
1.23
|
1.46
|
-16.0%
|
Non-GAAP net income
per ADS attributable to New Oriental -
basic(3)(4)
|
1.99
|
1.68
|
18.4%
|
Non-GAAP net income
per ADS attributable to New Oriental -
diluted(3)(4)
|
1.99
|
1.68
|
18.2%
|
(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 and gain / (loss) from fair
value change of long-term investments 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, 2019
- Total student enrollments in academic subjects tutoring and
test preparation courses increased by 82.3% year-over-year to
approximately 1,570,600 for the third fiscal quarter of 2019.
- The total number of schools and learning centers was 1,164 as
of February 28, 2019, an increase of
164 compared to 1,000 as of February 28,
2018, and an increase of 39 compared to 1,125 as of
November 30, 2018. The total number
of schools was 92 as of February 28,
2019.
Michael Minhong Yu, New
Oriental's Executive Chairman, commented, "We are pleased to see
continued acceleration of growth momentum in the third quarter
of fiscal year 2019 and to achieve a top line growth of 28.9%, or
36.1% if computed in Renminbi. Our key growth driver, the K-12
after-school tutoring business, achieved a year-over-year revenue
growth of approximately 38%, or 46% if computed in Renminbi.
Furthermore, our U-Can middle and high school all-subjects
after-school tutoring business grew by approximately 37%, or 44% if
computed in Renminbi, and our POP Kids program achieved a growth of
approximately 41%, or 49% if computed in Renminbi. We are confident
and well-placed to continue to expand our market share in the long
term through our ceaseless efforts in improving teaching quality
and enhancing learning experience for our students."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "As we continued to execute
our well-proven 'Optimize the Market strategy', we witnessed steady
progress in our capacity expansion plan in this quarter. We added a
net of 36 learning centers in existing cities, and opened a new
offline training school in the city of Xining, as well as two dual-teacher model
schools in the cities of Mianyang and Xinxiang. Altogether, this
increased the total square meters of classroom area by
approximately 27% year-over-year and 6% quarter-over-quarter by the
end of this quarter. We consistently focused on maintaining our
service quality while we continued to deepen our penetration into
existing markets through capacity expansion. It is very encouraging
to see that our student retention for the K-12 business continued
to improve this quarter, which demonstrates the success of our
pilot teacher training program, using standardized content and
methodology, initiated in the beginning of this fiscal year. We
will continue to enhance and leverage our online and offline
integrated standardized teaching system for the K-12 business as
well as overseas test preparation business. We also continued to
make strategic investments in our dual-teacher model classes and
new initiatives for K-12 tutoring in our pure online education
platform, Koolearn.com, for which the demand in cities of lower
tiers and in remote areas is expected to increase."
Stephen Zhihui Yang, New
Oriental's Chief Financial Officer, commented, "We are deeply
encouraged not only by our strong top line performance, but
also the improvement in our operating margin during the third
quarter. Non-GAAP operating income increased by 40.2% year over
year to approximately US$113.8
million, and non-GAAP operating margin rose by 120 basis
points to 14.3% from 13.1% a year ago. The robust financial
performance of this quarter was driven by better utilization of
facilities and enhanced cost and expenses efficiency amid our
steady expansion. We will continue to revamp all business lines
with a standardized, modular and systematic approach, which
will enable us to capture new
growth opportunities and scale our business at higher efficiency.
With these strategies in place, we are poised to continue to
deliver sustainable and long-term value for our shareholders."
Recent Updates
New Oriental's subsidiary, Koolearn Technology Holding Limited
("Koolearn"), a leading online extracurricular education service
provider in China, has completed
its global offering of ordinary shares (the "Global Offering"),
comprising an international offering and a Hong Kong public offering. Koolearn commenced
trading of its shares on the Main Board of The Stock Exchange of
Hong Kong Limited on March 28, 2019
(Hong Kong time) under the stock
code "1797".
The net proceeds from the Global Offering were approximately
HK$1,777.6 million (US$226.5 million), after deducting
underwriting fees and commissions and expenses related to the
Global Offering, including the exercise of the over-allotment
option. The net proceeds will be used for the following
purposes:
- Investment in staff recruitment and training activities;
- Strategically-pursued acquisitions and/or investments in
complementary businesses to support Koolearn's growth
strategies;
- Improvement of course development capabilities, including
enhancement and upgrade of Koolearn's technology
infrastructure;
- Improvement and implementation of sales and marketing
activities to expand Koolearn's student base and deepen student
engagement; and
- Working capital and other general corporate purposes.
Moving forward, Koolearn will disclose its periodical financial
results under International Financial Reporting Standards. After
the listing, its financial results will continue to be consolidated
into New Oriental's financial records.
Financial Results for the Third Fiscal Quarter Ended
February 28, 2019
Net Revenues
For the third fiscal quarter of 2019, New Oriental reported net
revenues of US$796.7 million,
representing a 28.9% increase year-over-year. Net revenues from
educational programs and services for the third fiscal quarter were
US$727.1 million, representing a
28.7% increase year-over-year. The growth was mainly driven by
increases in student enrollments in K-12 after-school tutoring
courses.
Total student enrollments in academic subjects tutoring and test
preparation courses in the third fiscal quarter of 2019 increased
by 82.3% year-over-year to approximately 1,570,600. The significant
increase in the number of student enrollments is primarily due to
the division of the spring semester into two parts. Under this
method, student enrollments in the spring semester are recorded
separately for each part and the student enrollments for each part
fall into separate quarters. This practice was adopted in
November 2018 to comply with the
latest regulatory requirements.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$700.9 million, representing a 25.2% increase
year-over-year. Non-GAAP operating costs and expenses for the
quarter, which exclude share-based compensation expenses, were
US$683.0 million, representing a
27.2% increase year-over-year.
- Cost of revenues increased by 25.6% year-over-year to
US$337.5 million, primarily due to
increases in teachers' compensation for more teaching hours and
rental costs for the increased number of schools and learning
centers in operation.
- Selling and marketing expenses increased by 13.3%
year-over-year to US$87.5 million,
primarily due to increases in brand promotion expenses and selling
and marketing staff's compensation.
- General and administrative expenses for the quarter
increased by 29.1% year-over-year to US$276.0 million. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, were US$258.0 million,
representing a 35.1% increase year-over-year. The increase was
primarily due to increased headcount as the Company grew its
network of schools and learning centers, as well as increases in
R&D expenses and human resources expenses related to the
development of the Company's online and offline integrated
education ecosystem.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, decreased by 21.1% to
US$18.0 million in the third fiscal
quarter of 2019.
Operating Income and Operating Margin
Operating income for the quarter was US$95.8 million, representing a 64.1% increase
year-over-year. Non-GAAP operating income was US$113.8 million, representing a 40.2% increase
year-over-year.
Operating margin for the quarter was 12.0%, compared to 9.4% in
the same period of the prior fiscal year. Non-GAAP operating
margin, which excludes share-based compensation expenses, for the
quarter was 14.3%, compared to 13.1% in the same period of the
prior fiscal year.
Gain from Fair Value Change of Long-Term Investments
Gain from fair value changes of long term investments for the
quarter was US$6.5 million.
Net Income and EPS
Net income attributable to New Oriental for the quarter was
US$97.4 million, representing a 42.5%
increase from the same period of the prior fiscal year. Basic and
diluted earnings per ADS attributable to New Oriental were
US$0.62 and US$0.61, respectively.
Non-GAAP Net Income and Non-GAAP EPS
Non-GAAP net income attributable to New Oriental for the quarter
was US$108.9 million, representing a
19.4% increase from the same period of the prior fiscal year.
Non-GAAP basic and diluted earnings per ADS attributable to New
Oriental were US$0.69 and
US$0.69, respectively.
Cash Flow
Net operating cash flow for the third fiscal quarter of 2019 was
approximately US$114.1 million.
Capital expenditures for the quarter were US$83.6 million, which were primarily
attributable to the opening of 59 facilities and renovations at
existing learning centers.
Balance Sheet
As of February 28, 2019, New
Oriental had cash and cash equivalents of US$844.9 million, as compared to US$983.3 million as of May
31, 2018. In addition, the Company had US$96.7 million in term deposits, and
US$1,792.7 million in short-term
investment.
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 2019 was US$1,191.8 million, an increase of 10.0% from
US$1,083.8 million at the end of the
third quarter of fiscal year 2018. The Company adopted Revenue from
Contracts with Customers ("Topic 606") starting June 1, 2018, and as a result, as of February 28, 2019, US$72.6million of deferred revenue was
reclassified to accrued expenses and other current liabilities,
representing estimated amounts of tuition collected that may be
refunded in the future if students withdraw from a course while
there are remaining classes. In addition, the lower than usual
increase was due to the change of tuition fees collection schedule
for K-12 after-school tutoring courses to comply with the latest
regulatory requirements.
Financial Results for the Nine Months Ended February 28, 2019
For the first nine months of fiscal year 2019, New Oriental
reported net revenues of US$2,253.6
million, representing a 29.0% increase year-over-year.
Total student enrollments in academic subjects tutoring and test
preparation courses in the first nine months of fiscal year 2019
increased by 31.7% to approximately 5,626,700.
Income from operations for the first nine months of fiscal year
2019 was US$228.6 million,
representing a 10.8% increase year-over-year. Non-GAAP income from
operations for the first nine months of fiscal year 2019 was
US$274.2 million, representing a
13.5% increase year-over-year.
Operating margin for the first nine months of fiscal year 2019
was 10.1%, compared to 11.8% 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
2019, was 12.2%, compared to 13.8% for the same period of the prior
fiscal year.
Net income attributable to New Oriental for the first nine
months of fiscal year 2019 was US$194.8
million, representing a 15.7% decrease year-over-year. Basic
and diluted net income per ADS attributable to New Oriental for the
first nine months of fiscal year 2019 amounted to US$1.23 and US$1.23, respectively.
Non-GAAP net income attributable to New Oriental for the first
nine months of fiscal year 2019 was US$316.0
million, representing a 18.7% 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 2019 amounted to
US$1.99 and US$1.99 respectively.
Outlook for Fourth Quarter of Fiscal Year 2019
New Oriental expects total net revenues in the fourth quarter of
fiscal year 2019 (March 1, 2019 to
May 31, 2019) to be in the range of
US$820.6 million to US$840.6 million, representing year-over-year
growth in the range of 17% to 20%. This forecast takes into account
factors including the industry seasonality and practices in
compliance with the latest regulatory requirements.
The projected growth rate of revenue in our functional currency
Renminbi is expected to be in the range of 23% to 26% for the
fourth quarter of fiscal year 2019. The exchange rate used to
calculate expected revenues for the fourth quarter of fiscal 2019
is 6.65. The historical exchange rate used to calculate revenues
for the fourth quarter of fiscal 2018 was 6.33.
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 23, 2019, U.S. Eastern Time (8 PM on April 23,
2019, 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
"4846628".
A replay of the conference call may be accessed by phone at the
following number until May 1,
2019:
International:
|
+61 2 8199
0299
|
Passcode:
|
4846628
|
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
language training and test preparation, primary and secondary
school education, online education, content development and
distribution, overseas study consulting services, pre-school
education and study tour. 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 fourth quarter of fiscal year 2019, 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 and gain /
(loss) from fair value change of long-term investments, operating
income excluding share-based compensation expenses, operating cost
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 and gain / (loss) from
fair value change of long-term investments. 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 and gain / (loss) from fair value change of long-term
investments 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 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 and gain / (loss) from fair value
change of long-term investments 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:
Ms. Joyce Wu
FTI Consulting
Tel: +852-3768-4548
Email: NewOriental@fticonsulting.com
Ms. Sisi Zhao
New Oriental Education & 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 May
31
|
2019
|
|
2018
|
(Unaudited)
|
|
(Audited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
844,901
|
|
983,319
|
Restricted
cash
|
43
|
|
47
|
Term
deposits
|
96,655
|
|
107,741
|
Short-term
investments
|
1,792,729
|
|
1,623,763
|
Accounts receivable,
net
|
4,137
|
|
3,179
|
Inventory,
net
|
34,144
|
|
40,175
|
Prepaid expenses and
other current assets, net
|
225,894
|
|
182,095
|
Amounts due from
related parties, current
|
21,678
|
|
1,595
|
Total current
assets
|
3,020,181
|
|
2,941,914
|
|
|
|
|
Restricted cash,
non-current
|
4,176
|
|
3,399
|
Property and
equipment, net
|
524,569
|
|
449,592
|
Land use rights,
net
|
16,480
|
|
3,785
|
Amounts due from
related parties, non-current
|
1,472
|
|
2,226
|
Long-term
deposits
|
48,063
|
|
40,099
|
Long-term prepaid
rents
|
568
|
|
191
|
Intangible assets,
net
|
15,407
|
|
8,544
|
Goodwill,
net
|
81,404
|
|
31,729
|
Long-term
investments, net
|
424,804
|
|
433,333
|
Deferred tax assets,
non-current, net
|
58,087
|
|
43,323
|
Other non-current
assets
|
23,740
|
|
19,577
|
Total
assets
|
4,218,951
|
|
3,977,712
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY AND EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
(including accounts payable of the consolidated
variable interest entities without recourse to New Oriental of
US$39,279 and US$36,795 as of May 31, 2018 and February 28,
2019, respectively)
|
36,952
|
|
39,889
|
Accrued expenses and
other current liabilities (including accrued
expenses and other current liabilities of the consolidated
variable
interest entities without recourse to New Oriental of
US$335,955
and US$456,517 as of May 31, 2018 and February 28, 2019,
respectively)
|
537,693
|
|
373,537
|
Income taxes payable
(including income tax payable of the
consolidated variable interest entities without recourse to New
Oriental of US$54,844 and US$81,241 as of May 31, 2018 and
February 28, 2019, respectively)
|
86,694
|
|
67,233
|
Amounts due to
related parties (including amounts due to related
parties of the consolidated variable interest entities without
recourse to New Oriental of US$30 and US$909 as of May 31,
2018 and February 28, 2019, respectively)
|
945
|
|
30
|
Deferred revenue
(including deferred revenue of the consolidated
variable interest entities without recourse to New Oriental of
US$1,244,748 and US$1,142,128 as of May 31, 2018 and February
28, 2019, respectively)
|
1,191,753
|
|
1,270,195
|
|
|
|
|
Total current
liabilities
|
1,854,037
|
|
1,750,884
|
|
|
|
|
Deferred tax
liabilities, non-current (including deferred tax liabilities
of the consolidated variable interest entities without recourse
to
New Oriental of US$13,782 and US$19,426 as of May 31, 2018
and February 28, 2019, respectively)
|
18,697
|
|
12,133
|
Long term loan
(includingLong term loan of the consolidated
variable interest entities without recourse to New Oriental of
nil
and nil as of May 31, 2018 and February 28, 2019,
respectively)
|
51,099
|
|
-
|
Total long-term
liabilities
|
69,796
|
|
12,133
|
|
|
|
|
Total
liabilities
|
1,923,833
|
|
1,763,017
|
|
|
|
|
Mezzanine
equity
|
|
|
|
Redeemable
non-controlling interests
|
206,624
|
|
206,624
|
Equity
|
|
|
|
New Oriental
Education & Technology Group Inc. shareholders'
equity
|
2,073,494
|
|
1,991,589
|
Non-controlling interests
|
15,000
|
|
16,482
|
Total
equity
|
2,088,494
|
|
2,008,071
|
|
|
|
|
Total liabilities,
mezzanine equity and equity
|
4,218,951
|
|
3,977,712
|
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
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
796,722
|
|
618,081
|
|
|
|
|
Operating cost and
expenses (note 1)
|
|
|
|
Cost of
revenues
|
337,524
|
|
268,823
|
Selling and
marketing
|
87,458
|
|
77,209
|
General and
administrative
|
275,960
|
|
213,682
|
Total operating
cost and expenses
|
700,942
|
|
559,714
|
Operating
Income
|
95,780
|
|
58,367
|
Gain from fair value
change of long-term investments
|
6,527
|
|
-
|
Other income,
net
|
24,124
|
|
21,902
|
Provision for income
taxes
|
(29,464)
|
|
(13,409)
|
Loss from equity
method investments
|
(1,734)
|
|
(258)
|
|
|
|
|
Net
income
|
95,233
|
|
66,602
|
Add: Net loss
attributable to non-controlling interests
|
2,178
|
|
1,774
|
|
|
|
|
Net income
attributable to New Oriental Education &
Technology Group Inc.'s shareholders
|
97,411
|
|
68,376
|
|
|
|
|
Net income per
common share
|
|
|
|
-
Basic
|
0.62
|
|
0.43
|
-
Diluted
|
0.61
|
|
0.43
|
|
|
|
|
Net income per ADS
(note 2)
|
|
|
|
-
Basic
|
0.62
|
|
0.43
|
-
Diluted
|
0.61
|
|
0.43
|
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
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
275,960
|
|
213,682
|
Less: Share-based
compensation expenses
in general and administrative expenses
|
17,989
|
|
22,789
|
Non-GAAP general and
administrative
expenses
|
257,971
|
|
190,893
|
|
|
|
|
Total operating cost
and expenses
|
700,942
|
|
559,714
|
Less: Share-based
compensation expenses
|
17,989
|
|
22,789
|
Non-GAAP operating
cost and expenses
|
682,953
|
|
536,925
|
|
|
|
|
Operating
income
|
95,780
|
|
58,367
|
Add: Share-based
compensation expenses
|
17,989
|
|
22,789
|
Non-GAAP operating
income
|
113,769
|
|
81,156
|
|
|
|
|
Operating
margin
|
12.0%
|
|
9.4%
|
Non-GAAP operating
margin
|
14.3%
|
|
13.1%
|
|
|
|
|
Net income
attributable to New Oriental
|
97,411
|
|
68,376
|
Add: Share-based
compensation expenses
|
17,989
|
|
22,789
|
Less: Gain from fair
value change of long-term
investments
|
6,527
|
|
-
|
Non-GAAP net income
attributable to New
Oriental
|
108,873
|
|
91,165
|
|
|
|
|
Net income per ADS
attributable to New
Oriental - Basic (note 2)
|
0.62
|
|
0.43
|
Net income per
ADS attributable to New
Oriental - Diluted (note 2)
|
0.61
|
|
0.43
|
|
|
|
|
Non-GAAP net income
per ADS attributable
to New Oriental - Basic (note 2)
|
0.69
|
|
0.58
|
Non-GAAP net income
per ADS attributable
to New Oriental - Diluted (note 2)
|
0.69
|
|
0.57
|
|
|
|
|
Weighted average
shares used in calculating
basic net income per ADS (note 2)
|
158,060,274
|
|
158,253,243
|
Weighted average
shares used in calculating
diluted net income per ADS (note 2)
|
158,865,345
|
|
158,736,059
|
|
|
|
|
Non-GAAP income per
share - basic
|
0.69
|
|
0.58
|
Non-GAAP income per
share - diluted
|
0.69
|
|
0.57
|
Notes:
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the operating
cost
and expenses as follows:
|
|
|
|
|
|
For the Three
Months Ended February 28
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
General and
administrative expenses
|
17,989
|
|
22,789
|
Total
|
17,989
|
|
22,789
|
|
|
|
|
|
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 Feburary 28
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
2,253,640
|
|
1,746,429
|
|
|
|
|
Operating costs
and expenses (note 1):
|
|
|
|
Cost of
revenues
|
1,005,028
|
|
766,275
|
Selling and
marketing
|
278,356
|
|
223,203
|
General and
administrative
|
745,269
|
|
550,577
|
Total operating
costs and expenses
|
2,028,653
|
|
1,540,055
|
Gain on disposal of a
subsidiary
|
3,575
|
|
-
|
Operating
income
|
228,562
|
|
206,374
|
Loss from fair value
change of long-term investments
|
(75,592)
|
|
-
|
|
|
|
|
Other income,
net
|
93,416
|
|
70,413
|
Provision for income
taxes
|
(55,159)
|
|
(43,260)
|
Loss from equity
method investments
|
(1,212)
|
|
(9)
|
|
|
|
|
Net
income
|
190,015
|
|
233,518
|
|
|
|
|
Add: Net loss
(income) attributable to non-controlling
interests
|
4,802
|
|
(2,470)
|
|
|
|
|
Net income
attributable to New Oriental Education &
Technology Group Inc.
|
194,817
|
|
231,048
|
|
|
|
|
|
|
|
|
Net income per
share attributable to New Oriental-Basic
|
1.23
|
|
1.46
|
|
|
|
|
Net income per
share attributable to New Oriental-Diluted
|
1.23
|
|
1.46
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Basic
(note 2)
|
1.23
|
|
1.46
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Diluted
(note 2)
|
1.23
|
|
1.46
|
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 Feburary 28
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
745,269
|
|
550,577
|
Less: Share-based
compensation expenses in
general and administrative expenses
|
45,596
|
|
35,228
|
Non-GAAP general and
administrative
expenses
|
699,673
|
|
515,349
|
|
|
|
|
Total operating costs
and expenses
|
2,028,653
|
|
1,540,055
|
Less: Share-based
compensation expenses
|
45,596
|
|
35,228
|
Non-GAAP operating
costs and expenses
|
1,983,057
|
|
1,504,827
|
|
|
|
|
Operating
income
|
228,562
|
|
206,374
|
Add: Share-based
compensation expenses
|
45,596
|
|
35,228
|
Non-GAAP operating
income
|
274,158
|
|
241,602
|
|
|
|
|
Operating
margin
|
10.1%
|
|
11.8%
|
Non-GAAP operating
margin
|
12.2%
|
|
13.8%
|
|
|
|
|
Net income
attributable to New Oriental
|
194,817
|
|
231,048
|
Add: Share-based
compensation expenses
|
45,596
|
|
35,228
|
Add: Loss from fair
value change of long-term
investments
|
75,592
|
|
-
|
Non-GAAP net income
to New Oriental
|
316,005
|
|
266,276
|
|
|
|
|
Net income per ADS
attributable to New
Oriental - Basic (note 2)
|
1.23
|
|
1.46
|
Net income per ADS
attributable to New
Oriental - Diluted (note 2)
|
1.23
|
|
1.46
|
|
|
|
|
Non-GAAP net income
per ADS attributable
to New Oriental - Basic (note 2)
|
1.99
|
|
1.68
|
Non-GAAP net income
per ADS attributable
to New Oriental - Diluted (note 2)
|
1.99
|
|
1.68
|
|
|
|
|
Weighted average
shares used in calculating
basic net income per ADS (note 2)
|
158,443,487
|
|
158,117,868
|
Weighted average
shares used in calculating
diluted net income per ADS (note 2)
|
159,031,798
|
|
158,429,934
|
|
|
|
|
Non-GAAP income per
share - basic
|
1.99
|
|
1.68
|
Non-GAAP income per
share - diluted
|
1.99
|
|
1.68
|
Notes:
|
|
|
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the
operating
costs and expenses as follows:
|
|
|
|
|
|
For the Nine
Months Ended Feburary 28
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
General and
administrative expense
|
45,596
|
|
35,228
|
Total
|
45,596
|
|
35,228
|
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
|
|
View original
content:http://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-third-fiscal-quarter-ended-february-28-2019-300836230.html
SOURCE New Oriental Education and Technology Group Inc.