BEIJING, April 19,
2023 /PRNewswire/ -- New Oriental Education
& Technology Group Inc. (the "Company" or "New Oriental")
(NYSE: EDU/ 9901.SEHK), a provider of private educational services
in China, today announced its
unaudited financial results for the third fiscal quarter ended
February 28, 2023, which is the third
quarter of New Oriental's fiscal year 2023.
Financial Highlights for the Third Fiscal Quarter Ended
February 28, 2023
- Total net revenues increased by 22.8% year over year to
US$754.2 million for the third fiscal
quarter of 2023.
- Operating income increased by 147.1% year over year to
US$66.5 million for the third fiscal
quarter of 2023.
- Net income attributable to New Oriental increased by 166.7%
year over year to US$81.6 million for
the third fiscal quarter of 2023.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
3Q
FY2023
|
3Q
FY2022
|
% of
change
|
Net revenues
|
754,153
|
614,091
|
22.8 %
|
Operating income/
(loss)
|
66,491
|
(141,194)
|
147.1 %
|
Non-GAAP operating
income/ (loss) (2)(3)
|
87,895
|
(111,232)
|
179.0 %
|
Net income/ (loss)
attributable to New Oriental
|
81,648
|
(122,439)
|
166.7 %
|
Non-GAAP net income/
(loss) attributable to New Oriental (2)(3)
|
95,362
|
(95,503)
|
199.9 %
|
Net income/ (loss) per
ADS attributable to New Oriental - basic
|
0.49
|
(0.72)
|
167.8 %
|
Net income/ (loss) per
ADS attributable to New Oriental -
diluted
|
0.48
|
(0.72)
|
166.5 %
|
Non-GAAP net income/
(loss) per ADS attributable to New
Oriental - basic (2)(3)(4)
|
0.57
|
(0.56)
|
201.5 %
|
Non-GAAP net income/
(loss) per ADS attributable to New
Oriental - diluted (2)(3)(4)
|
0.56
|
(0.56)
|
199.7 %
|
|
|
|
|
(in thousands US$,
except per ADS(1) data)
|
9M FY2023
|
9M FY2022
|
%of
change
|
Net revenues
|
2,137,189
|
2,581,223
|
-17.2 %
|
Operating income/
(loss)
|
141,992
|
(876,864)
|
116.2 %
|
Non-GAAP operating
income/ (loss) (2)(3)
|
201,242
|
(772,680)
|
126.0 %
|
Net income/ (loss)
attributable to New Oriental
|
148,382
|
(998,419)
|
114.9 %
|
Non-GAAP net income/
(loss) attributable to New Oriental (2)(3)
|
196,818
|
(885,899)
|
122.2 %
|
Net income/ (loss) per
ADS attributable to New Oriental - basic
|
0.88
|
(5.89)
|
114.9 %
|
Net income/ (loss) per
ADS attributable to New Oriental -
diluted
|
0.86
|
(5.89)
|
114.6 %
|
Non-GAAP net income/
(loss) per ADS attributable to New
Oriental - basic (2)(3)(4)
|
1.17
|
(5.22)
|
122.3 %
|
Non-GAAP net income/
(loss) per ADS attributable to New
Oriental - diluted (2)(3)(4)
|
1.14
|
(5.22)
|
121.9 %
|
|
(1) Each ADS
represents ten common shares. The Hong Kong-listed shares are
fully fungible with
the ADSs listed on
NYSE. The weighted average number of ADS and earnings per ADS have
been retrospectively adjusted to reflect
the ADS ratio change from one ADS representing one common share to
one ADS representing ten common shares,
which became effective on April 8, 2022.
|
(2) GAAP
represents Generally Accepted Accounting Principles in the United
States of America.
|
(3) New Oriental
provides net income / (loss) attributable to New Oriental,
operating income / (loss) and net income /
(loss) 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 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 / (loss) per ADS attributable to New Oriental is
computed using Non-GAAP net income /
(loss) attributable to New Oriental 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, 2023
- The total number of schools and learning centers was 712 as of
February 28, 2023, an increase of 4
compared to 708 as of November 30,
2022, and a decrease of 135 compared to 847 as of
February 28, 2022, respectively. The
total number of schools was 91 as of February 28, 2023.
Michael Yu, New Oriental's
Executive Chairman, commented, "In the third fiscal quarter, we
continued to make solid progress in all key business lines given a
favorable environment of recovery as the pandemic subsides. Our
overseas test preparation and overseas study consulting businesses
increased by approximately 13% and 5% year-over-year, respectively.
Simultaneously, our educational new business initiatives have
sustained a strong momentum and generated meaningful profit in this
fiscal quarter. As of February 28,
2023, our non-academic tutoring courses were offered in over
60 cities, with 218,000 student enrollments in this fiscal quarter,
while the intelligent learning system and devices were adopted in
around 60 cities, with 108,000 active paid users in this fiscal
quarter. We are confident that these new businesses have a huge
market potential, and we will leverage our brand advantage and rich
educational resources to capture these new market
opportunities."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "By the end of this fiscal quarter,
the total number of schools and learning centers remained at 712.
At the same time, our continued investment in maintaining the
online-merge-offline teaching system has not only supported our
high quality services amid the pandemic, but also helped us enhance
operational efficiency as businesses gradually recover. East
Buy(东方甄选) has made significant progress in its private label
products and livestreaming e-commerce business, and has achieved
breakthroughs in our business operations and financial performance.
While East Buy has become a well-known platform for promoting
healthy, top-quality and cost-effective products to the public, it
continues to expand its product selection and SKUs through
proactive cooperation with third parties, coupled with increased
variety of our private label products. By focusing on improving
product capabilities and developing diverse cultural content, East
Buy has yielded millions of revenues and a loyal customer base in
the first three quarters of this fiscal year. During the quarter,
East Buy continued to devote substantial resources to invest in
improving products, services and content."
Stephen Zhihui Yang, New
Oriental's Executive President and Chief Financial Officer,
commented, "We are pleased to deliver continued improvement in
profitability in this quarter. Our GAAP operating margin and
Non-GAAP operating margin for the quarter were 8.8% and 11.7%
respectively. GAAP net margin and non-GAAP net margin for the
quarter were 10.8% and 12.6% respectively. We recorded a positive
operating cash flow of US$190.5
million and by the end of this fiscal quarter, our cash and
cash equivalents, term deposits and short-term investments totaled
approximately US$4.3 billion. We are
determined in pursuing profitable growth for all business lines and
maintaining a healthy growth with improving operational efficiency
and service quality. We are confident in creating sustainable value
for our customers and shareholders in the long term."
Share Repurchase
On July 26, 2022, the Company's
board of directors authorized a share repurchase program, under
which the Company may repurchase up to US$400 million of the Company's ADSs or common
shares during the period from July 28,
2022 through May 31, 2023. As
of April 18, 2023, the Company
repurchased an aggregate of approximately 5.1 million ADSs for
approximately US$157.6 million from
the open market under the share repurchase program.
Financial Results for the Third Fiscal Quarter Ended
February 28, 2023
Net Revenues
For the third fiscal quarter of 2023, New Oriental reported net
revenues of US$754.2 million,
representing a 22.8% increase year over year. The growth was mainly
driven by the increase in revenues from our educational new
business initiatives and East Buy private label products and
livestreaming e-commerce business.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$687.7 million, representing a 9.0%
decrease year over year. Non-GAAP operating costs and expenses for
the quarter, which exclude share-based compensation expenses, were
US$666.3 million, representing
an 8.1% decrease year over year. The decrease was primarily
due to the reduction of facilities and number of staff as a result
of the downsizing in fiscal year 2022.
- Cost of revenues decreased by 0.9% year over year to
US$369.6 million.
- Selling and marketing expenses increased by 9.5% year
over year to US$102.6 million.
- General and administrative expenses for the quarter
decreased by 25.4% year over year to US$215.5 million. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, were US$194.5 million,
representing a 25.1% decrease year over year.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, decreased by 28.6% to
US$21.4 million in the third fiscal
quarter of 2023.
Operating Income and Operating Margin
Operating income was US$66.5
million, representing a 147.1% increase year over year.
Non-GAAP income from operations for the quarter was US$87.9 million, representing a 179.0% increase
year over year.
Operating margin for the quarter was 8.8%, compared to negative
23.0% in the same period of the prior fiscal year. Non-GAAP
operating margin, which excludes share-based compensation expenses,
for the quarter was 11.7%, compared to negative 18.1% in the same
period of the prior fiscal year.
Net Income and Net Income per ADS
Net income attributable to New Oriental for the quarter was
US$81.6 million, representing a
166.7% increase year over year. Basic and diluted net income per
ADS attributable to New Oriental were US$0.49 and US$0.48, respectively.
Non-GAAP Net Income and Non-GAAP Net Income per ADS
Non-GAAP net income attributable to New Oriental for the quarter
was US$95.4 million, representing a
199.9% increase year over year. Non-GAAP basic and diluted net
income per ADS attributable to New Oriental were US$0.57 and US$0.56, respectively.
Cash Flow
Net operating cash inflow for the third fiscal quarter of 2023
was approximately US$190.5 million
and capital expenditures for the quarter were US$49.2 million.
Balance Sheet
As of February 28, 2023, New
Oriental had cash and cash equivalents of US$1,329.5 million. In addition, the Company had
US$1,413.5 million in term deposits
and US$1,568.1 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 2023 was US$1,163.2 million, an increase of 19.8% as
compared to US$971.3 million at the
end of the third quarter of fiscal year 2022.
Financial Results for the Nine Months Ended February 28, 2023
For the first nine months of fiscal year 2023, New Oriental
reported net revenues of US$2,137.2
million, representing a 17.2% decrease year over year.
Operating income for the first nine months of fiscal year 2023
was US$142.0 million, compared to a
loss of US$876.9 million in the same
period of the prior fiscal year. Non-GAAP operating income for the
first nine months of fiscal year 2023 was US$201.2 million, compared to a loss of
US$772.7 million in the same period
of the prior fiscal year.
Operating margin for the first nine months of fiscal year 2023
was 6.6%, compared to negative 34.0% 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 2023, was 9.4%, compared to negative 29.9% for the
same period of the prior fiscal year.
Net income attributable to New Oriental for the first nine
months of fiscal year 2023 was US$148.4
million, compared to a loss of US$998.4 million in the same period of the prior
fiscal year. Basic and diluted net income per ADS attributable to
New Oriental for the first nine months of fiscal year 2023 amounted
to US$0.88 and US$0.86, respectively.
Non-GAAP net income attributable to New Oriental for the first
nine months of fiscal year 2023 was US$196.8
million, compared to a loss of US$885.9 million in the same period of the prior
fiscal year. Non-GAAP basic and diluted net income per ADS
attributable to New Oriental for the first nine months of fiscal
year 2023 amounted to US$1.17 and
US$1.14, respectively.
Koolearn's Change of Company Name, Short Stock Name and
Company Logo
Koolearn Technology Holding Limited, a subsidiary of New
Oriental, has announced the passing of the special resolution at
the Extraordinary General Meeting held on January 31, 2023, approving the change of company
name from "Koolearn Technology Holding Limited"
("新東方在綫科技控股有限公司") to "East Buy Holding Limited"
("東方甄選控股有限公司"). The changes of company name, short stock name and
company logo will not affect the rights of shareholders or East Buy
Holding Limited's operations and financial position.
Outlook for the Fourth Quarter of the Fiscal Year
2023
New Oriental expects total net revenues in the fourth quarter of
the fiscal year 2023 (March 1, 2023
to May 31, 2023) to be in the range
of US$801.8 million to US$822.7 million, representing year-over-year
increase in the range of 53% to 57%.
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 19, 2023, U.S. Eastern Time (8 PM on April 19,
2023, Beijing/Hong Kong
Time).
Please register in advance of the conference, using the link
provided below. Upon registering, you will be provided with
participant dial-in numbers, and unique personal PIN.
Conference call registration link:
https://register.vevent.com/register/BIc19a4ce7fc9f482bb4e3179d7e2fbdee.
It will automatically direct you to the registration page of "New
Oriental FY 2023 Q3 Earnings Conference Call" where you may fill in
your details for RSVP.
In the 10 minutes prior to the call start time, you may use the
conference access information (including dial in number(s) and
personal PIN) provided in the confirmation email received at the
point of registering.
Joining the conference call via a live webcast:
Additionally, a live and archived webcast of the conference call
will be available at http://investor.neworiental.org.
Listening to the conference call replay:
A replay of the conference call may be accessed via the webcast
on-demand by registering at
https://edge.media-server.com/mmc/p/pvkpyhab first. The replay
will be available until April 19,
2024.
About New Oriental
New Oriental is a provider of private educational services in
China offering a wide range of
educational programs, services and products to a varied student
population throughout China. New
Oriental's program, service and product offerings mainly consist of
educational services and test preparation courses, online education
and other services, overseas study consulting services, and
educational materials and distribution. New Oriental is listed on
NYSE (NYSE: EDU) and SEHK (9901.SEHK), respectively. New Oriental's
ADSs, each of which represents ten common shares. The Hong Kong-listed shares are fully
fungible with the ADSs listed on NYSE.
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 2023, 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
increase 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 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 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 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 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. Rita Fong
Ms. Sisi Zhao
FTI Consulting
New Oriental Education & Technology Group Inc.
Tel: +852 3768 4548
Tel: +86-10-6260-5568
Email: rita.fong@fticonsulting.com
Email:
zhaosisi@xdf.cn
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
As of February
28
|
|
As of May
31
|
2023
|
|
2022
|
(Unaudited)
|
|
(Audited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
1,329,453
|
|
1,148,637
|
Restricted cash,
current
|
70,373
|
|
-
|
Term
deposits
|
1,413,541
|
|
1,140,066
|
Short-term
investments
|
1,568,065
|
|
1,902,254
|
Accounts receivable,
net
|
28,850
|
|
16,430
|
Inventory,
net
|
62,733
|
|
27,925
|
Prepaid expenses and
other current assets, net
|
219,193
|
|
215,402
|
Amounts due from
related parties, current
|
8,589
|
|
23,245
|
Total current
assets
|
4,700,797
|
|
4,473,959
|
|
|
|
|
Restricted cash,
non-current
|
31,175
|
|
45,890
|
Property and
equipment, net
|
371,397
|
|
402,690
|
Land use rights,
net
|
3,427
|
|
3,627
|
Amounts due from
related parties, non-current
|
1,805
|
|
3,365
|
Long-term
deposits
|
26,307
|
|
33,409
|
Intangible assets,
net
|
27,534
|
|
2,800
|
Goodwill,
net
|
107,717
|
|
70,803
|
Long-term investments,
net
|
429,225
|
|
437,919
|
Deferred tax assets,
non-current, net
|
31,531
|
|
20,038
|
Right-of-use
assets
|
414,941
|
|
531,102
|
Other non-current
assets
|
18,441
|
|
9,064
|
Total
assets
|
6,164,297
|
|
6,034,666
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
89,534
|
|
22,289
|
Accrued expenses and
other current liabilities
|
447,201
|
|
510,264
|
Income taxes
payable
|
101,327
|
|
75,650
|
Amounts due to related
parties
|
524
|
|
226
|
Deferred
revenue
|
1,163,165
|
|
933,062
|
Operating lease
liability,current
|
152,563
|
|
168,623
|
Total current
liabilities
|
1,954,314
|
|
1,710,114
|
|
|
|
|
Deferred tax
liabilities, non-current
|
18,918
|
|
19,240
|
Unsecured senior
notes
|
14,853
|
|
65,394
|
Operating lease
liabilities, non-current
|
299,633
|
|
446,394
|
Total long-term
liabilities
|
333,404
|
|
531,028
|
|
|
|
|
Total
liabilities
|
2,287,718
|
|
2,241,142
|
|
|
|
|
Equity
|
|
|
|
New Oriental
Education & Technology Group Inc. shareholders'
equity
|
3,725,495
|
|
3,705,506
|
Non-controlling
interests
|
151,084
|
|
88,018
|
Total
equity
|
3,876,579
|
|
3,793,524
|
|
|
|
|
Total liabilities
and equity
|
6,164,297
|
|
6,034,666
|
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
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
754,153
|
|
614,091
|
|
|
|
|
Operating cost and
expenses (note 1)
|
|
|
|
Cost of
revenues
|
369,560
|
|
372,747
|
Selling and
marketing
|
102,631
|
|
93,706
|
General and
administrative
|
215,471
|
|
288,832
|
Total operating cost
and expenses
|
687,662
|
|
755,285
|
Operating
income/(loss)
|
66,491
|
|
(141,194)
|
Gain from fair value
change of investments
|
6,752
|
|
1,072
|
Other income,
net
|
29,778
|
|
35,702
|
Provision for income
taxes
|
(19,339)
|
|
(16,863)
|
Gain/(Loss) from equity
method investments
|
10,598
|
|
(4,366)
|
Net
income/(loss)
|
94,280
|
|
(125,649)
|
|
|
|
|
Add: Net (gain)/loss
attributable to non-controlling interests
|
(12,632)
|
|
3,210
|
Net income/(loss)
attributable to New Oriental Education &
Technology Group Inc.'s shareholders
|
81,648
|
|
(122,439)
|
|
|
|
|
|
|
|
|
Net income/(loss)
per share attributable to New Oriental-Basic
(note 2)
|
0.05
|
|
(0.07)
|
|
|
|
|
Net income/(loss)
per share attributable to New Oriental-Diluted
(note 2)
|
0.05
|
|
(0.07)
|
|
|
|
|
Net income/(loss)
per ADS attributable to New Oriental-Basic
(note 2)
|
0.49
|
|
(0.72)
|
|
|
|
|
Net income/(loss)
per ADS attributable to New Oriental-Diluted
(note 2)
|
0.48
|
|
(0.72)
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATIONS 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
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
215,471
|
|
288,832
|
Less: Share-based
compensation expenses in general
and administrative expenses
|
21,003
|
|
29,222
|
Non-GAAP general and
administrative expenses
|
194,468
|
|
259,610
|
|
|
|
|
Total operating cost
and expenses
|
687,662
|
|
755,285
|
Less: Share-based
compensation expenses
|
21,404
|
|
29,962
|
Non-GAAP operating cost
and expenses
|
666,258
|
|
725,323
|
|
|
|
|
Operating
income/(loss)
|
66,491
|
|
(141,194)
|
Add: Share-based
compensation expenses
|
21,404
|
|
29,962
|
Non-GAAP operating
income/(loss)
|
87,895
|
|
(111,232)
|
|
|
|
|
Operating
margin
|
8.8 %
|
|
-23.0 %
|
Non-GAAP operating
margin
|
11.7 %
|
|
-18.1 %
|
|
|
|
|
Net income/(loss)
attributable to New Oriental
|
81,648
|
|
(122,439)
|
Add: Share-based
compensation expenses
|
20,466
|
|
28,008
|
Less: Gain from fair
value change of investments
|
6,752
|
|
1,072
|
Non-GAAP net
income/(loss) attributable to New Oriental
|
95,362
|
|
(95,503)
|
|
|
|
|
Net income/(loss) per
ADS attributable to New
Oriental- Basic (note 2)
|
0.49
|
|
(0.72)
|
Net income/(loss) per
ADS attributable to New
Oriental- Diluted (note 2)
|
0.48
|
|
(0.72)
|
|
|
|
|
Non-GAAP net
income/(loss) per ADS attributable to
New Oriental - Basic (note 2)
|
0.57
|
|
(0.56)
|
Non-GAAP net
income/(loss) per ADS attributable to
New Oriental - Diluted (note 2)
|
0.56
|
|
(0.56)
|
|
|
|
|
Weighted average shares
used in calculating basic net
income/(loss) per ADS (note 2)
|
1,669,887,093
|
|
1,696,966,183
|
Weighted average shares
used in calculating diluted net
income/(loss) per ADS (note 2)
|
1,681,414,233
|
|
1,696,966,183
|
|
|
|
|
Non-GAAP net
income/(loss) per share - basic
|
0.06
|
|
(0.06)
|
Non-GAAP net
income/(loss) per share - diluted
|
0.06
|
|
(0.06)
|
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
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
-
|
|
48
|
Selling and
marketing
|
401
|
|
692
|
General and
administrative
|
21,003
|
|
29,222
|
Total
|
21,404
|
|
29,962
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
For the Three Months
Ended February 28
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
|
|
|
|
|
Net cash provided by/
(used in) operating activities
|
190,482
|
|
(234,965)
|
|
Net cash provided by
investing activities
|
147,149
|
|
753,586
|
|
Net cash used in
financing activities
|
(52,594)
|
|
(66,727)
|
|
Effect of exchange rate
changes
|
23,140
|
|
9,218
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
308,177
|
|
461,112
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
1,122,824
|
|
1,050,130
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
1,431,001
|
|
1,511,242
|
|
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
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
2,137,189
|
|
2,581,223
|
|
|
|
|
Operating costs and
expenses (note 1):
|
|
|
|
Cost of
revenues
|
1,017,823
|
|
1,506,464
|
Selling and
marketing
|
296,900
|
|
371,109
|
General and
administrative
|
680,474
|
|
1,580,514
|
Total operating
costs and expenses
|
1,995,197
|
|
3,458,087
|
Operating
income/(loss)
|
141,992
|
|
(876,864)
|
Gain/(Loss) from fair
value change of investments
|
6,705
|
|
(13,251)
|
Other income,
net
|
87,996
|
|
33,344
|
Provision for income
taxes
|
(46,624)
|
|
(130,694)
|
Gain/(Loss) from equity
method investments
|
5,378
|
|
(46,144)
|
Net
income/(loss)
|
195,447
|
|
(1,033,609)
|
|
|
|
|
Add: Net (gain)/loss
attributable to non-controlling interests
|
(47,065)
|
|
35,190
|
Net income/(loss)
attributable to New Oriental Education &
Technology Group Inc.
|
148,382
|
|
(998,419)
|
|
|
|
|
|
|
|
|
Net income/(loss)
per share attributable to New Oriental-
Basic (note 2)
|
0.09
|
|
(0.59)
|
|
|
|
|
Net income/(loss)
per share attributable to New Oriental-
Diluted (note 2)
|
0.09
|
|
(0.59)
|
|
|
|
|
Net income/(loss)
per ADS attributable to New Oriental-Basic
(note 2)
|
0.88
|
|
(5.89)
|
|
|
|
|
Net income/(loss)
per ADS attributable to New Oriental-
Diluted (note 2)
|
0.86
|
|
(5.89)
|
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
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
680,474
|
|
1,580,514
|
Less: Share-based
compensation expenses in general and
administrative expenses
|
57,702
|
|
106,698
|
Non-GAAP general and
administrative expenses
|
622,772
|
|
1,473,816
|
|
|
|
|
Total operating costs
and expenses
|
1,995,197
|
|
3,458,087
|
Less: Share-based
compensation expenses
|
59,250
|
|
104,184
|
Non-GAAP operating
costs and expenses
|
1,935,947
|
|
3,353,903
|
|
|
|
|
Operating
income/(loss)
|
141,992
|
|
(876,864)
|
Add: Share-based
compensation expenses
|
59,250
|
|
104,184
|
Non-GAAP operating
income/(loss)
|
201,242
|
|
(772,680)
|
|
|
|
|
Operating
margin
|
6.6 %
|
|
-34.0 %
|
Non-GAAP operating
margin
|
9.4 %
|
|
-29.9 %
|
|
|
|
|
Net income/(loss)
attributable to New Oriental
|
148,382
|
|
(998,419)
|
Add: Share-based
compensation expenses
|
55,141
|
|
99,269
|
Less: Gain/(Loss) from
fair value change of investments
|
6,705
|
|
(13,251)
|
Non-GAAP net
income/(loss) attributable to New
Oriental
|
196,818
|
|
(885,899)
|
|
|
|
|
Net income/(loss) per
ADS attributable to New Oriental-
Basic (note 2)
|
0.88
|
|
(5.89)
|
Net income/(loss) per
ADS attributable to New Oriental-
Diluted (note 2)
|
0.86
|
|
(5.89)
|
|
|
|
|
Non-GAAP net
income/(loss) per ADS attributable to
New Oriental - Basic (note 2)
|
1.17
|
|
(5.22)
|
Non-GAAP net
income/(loss) per ADS attributable to
New Oriental - Diluted (note 2)
|
1.14
|
|
(5.22)
|
|
|
|
|
Weighted average shares
used in calculating basic net
income/(loss) per ADS (note 2)
|
1,686,758,402
|
|
1,696,234,912
|
Weighted average shares
used in calculating diluted net
income/(loss) per ADS (note 2)
|
1,691,361,202
|
|
1,696,234,912
|
|
|
|
|
Non-GAAP net
income/(loss) per share - basic
|
0.12
|
|
(0.52)
|
Non-GAAP net
income/(loss) per share - diluted
|
0.11
|
|
(0.52)
|
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
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
6
|
|
(157)
|
Selling and
marketing
|
1,542
|
|
(2,357)
|
General and
administrative
|
57,702
|
|
106,698
|
Total
|
59,250
|
|
104,184
|
|
|
|
|
Note 2: Each ADS
represents ten common shares. For the three and nine months ended
February 28, 2022,
the weighted average number of ADS and earnings per ADS have been
retrospectively adjusted to reflect the
ADS ratio change from one ADS representing one common share to one
ADS representing ten common
shares, which became effective on April 8, 2022.
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
For the Nine Months
Ended February 28
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
|
|
|
|
|
Net cash provided by/
(used in) operating activities
|
549,399
|
|
(1,309,800)
|
|
Net cash (used in )/
provided by investing activities
|
(102,350)
|
|
1,406,960
|
|
Net cash used in
financing activities
|
(170,345)
|
|
(179,986)
|
|
Effect of exchange rate
changes
|
(40,230)
|
|
(38,059)
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
236,474
|
|
(120,885)
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
1,194,527
|
|
1,632,127
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
1,431,001
|
|
1,511,242
|
|
View original
content:https://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-third-fiscal-quarter-ended-february-28-2023-301801607.html
SOURCE New Oriental Education and Technology Group Inc.