Quarterly Net Revenues Increased by 31.5%
Year-Over-Year
Quarterly Student Enrollments Increased by 63.3%
Year-Over-Year
Quarterly Non-GAAP operating margin rose by 720
basis points
BEIJING, Jan. 20, 2020 /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 second fiscal quarter ended
November 30, 2019, which is the
second quarter of New Oriental's fiscal year 2020.
Financial Highlights for the Second Fiscal Quarter Ended
November 30, 2019
- Total net revenues increased by 31.5% year-over-year to
US$785.2 million for the second
fiscal quarter of 2020.
- Operating income was US$25.3
million, compared to a loss from operations of US$28.6 million in the same period of the prior
fiscal year.
- Net income attributable to New Oriental was US$53.4 million, compared to a net loss of
US$25.8 million in the same period of
the prior fiscal year.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
2Q
FY2020
|
2Q
FY2019
|
% of
change
|
Net
revenues
|
785,211
|
597,072
|
31.5%
|
Operating income/
(loss)
|
25,299
|
(28,553)
|
188.6%
|
Non-GAAP operating
income/ (loss) (2)(3)
|
36,514
|
(14,866)
|
345.6%
|
Net income/ (loss)
attributable to New Oriental
|
53,437
|
(25,826)
|
306.9%
|
Non-GAAP net income
attributable to New Oriental (2)(3)
|
56,987
|
22,996
|
147.8%
|
Net income/ (loss)
per ADS attributable to New Oriental - basic
|
0.34
|
(0.16)
|
307.3%
|
Net income/ (loss)
per ADS attributable to New Oriental - diluted
|
0.34
|
(0.16)
|
306.5%
|
Non-GAAP net income
per ADS attributable to New Oriental -
basic(3)(4)
|
0.36
|
0.14
|
148.2%
|
Non-GAAP net income
per ADS attributable to New Oriental -
diluted(3)(4)
|
0.36
|
0.14
|
147.3%
|
|
|
|
|
(in thousands US$,
except per ADS(1) data)
|
1H
FY2020
|
1H
FY2019
|
% of
change
|
Net
revenues
|
1,856,988
|
1,456,918
|
27.5%
|
Operating
income
|
271,495
|
132,782
|
104.5%
|
Non-GAAP operating
income (2)(3)
|
293,730
|
160,389
|
83.1%
|
Net income
attributable to New Oriental
|
262,427
|
97,406
|
169.4%
|
Non-GAAP net income
attributable to New Oriental (2)(3)
|
287,149
|
207,132
|
38.6%
|
Net income per ADS
attributable to New Oriental - basic
|
1.66
|
0.61
|
169.9%
|
Net income per ADS
attributable to New Oriental - diluted
|
1.65
|
0.61
|
168.7%
|
Non-GAAP net income
per ADS attributable to New Oriental -
basic(3)(4)
|
1.81
|
1.31
|
38.9%
|
Non-GAAP net income
per ADS attributable to New Oriental -
diluted(3)(4)
|
1.80
|
1.30
|
38.3%
|
(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 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 Second Fiscal Quarter Ended
November 30, 2019
- Total student enrollments in academic subjects tutoring and
test preparation courses increased by 63.3% year-over-year to
approximately 3,789,200 for the second fiscal quarter of 2020.
- The total number of schools and learning centers was 1,304 as
of November 30, 2019, an increase of
179 compared to 1,125 as of November 30,
2018, and an increase of 43 compared to 1,261 as of
August 31, 2019. The total number of
schools was 97 as of November 30,
2019.
Michael Yu, New Oriental's
Executive Chairman, commented, "We are very pleased to report a set
of solid financial results in the second fiscal quarter of this
year, delivering both accelerated top-line growth and continued
operating margin expansion. Total net revenue growth was 31.5%, or
34.8% if measured in Renminbi, which exceeded the high-end of our
expected range. The K-12 after-school tutoring business continued
its strong momentum, and achieved a year-over-year revenue growth
of approximately 46%, or 49% if measured in Renminbi. Furthermore,
our U-Can middle and high school all-subjects after-school tutoring
business grew by approximately 43%, or 46% if measured in Renminbi,
while our POP Kids program achieved a growth of approximately 51%,
or 55% if measured in Renminbi."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "We continued to implement our
"Optimize the Market" Strategy in this quarter, and carried out
capacity expansion in cities where we see potential for rapid
growth and strong profitability. During this quarter, we added a
net of 41 learning centers in existing cities, opened a new
training school in the city of Huizhou, and launched a dual-teacher model in
a school in the city of Chengde. By the end of this quarter, the
total square meters of classroom area increased by approximately
25% year-over-year, and 6% quarter-over-quarter. In the meantime,
we continued our efforts in upgrading our online-merge-offline
(OMO) standardized classroom teaching system, while continuing to
roll out interactive courseware in the POP Kids program in more
cities. We are very encouraged to have received positive feedback
from our customers, and see sustained improvement in customer
retention rate. We also continued to make strategic investments
into our dual-teacher model classes as well as new initiatives in
K-12 tutoring on our pure online education platform, Koolearn.com,
to leverage our advanced teaching resources in lower tiers cities
and remote areas.
Stephen Zhihui Yang, New
Oriental's Chief Financial Officer, commented, "Following last
quarter's strong bottom line performance, we once again achieved
year-over-year operating margin expansion in this quarter. During
the quarter, we recorded non-GAAP operating income of US$36.5 million, compared to a loss of
US$14.9 million in the same period of
last year. Non-GAAP operating margin rose by 720 basis points to
4.7%, from negative 2.5% a year ago. The continued margin expansion
is mainly driven by better leverage in classroom rental and related
operating expenses, as we consistently improve the utilization of
facilities. In addition, supported by a standardized, modularized
and systemized operating process, we achieved an outstanding
improvement in operational efficiency within each key business
unit. We are confident that we will be able to deliver continued
margin expansion, and generate sustainable long-term value to our
customers and shareholders."
Financial Results for the Second Fiscal Quarter Ended
November 30, 2019
Net Revenues
For the second fiscal quarter of 2020, New Oriental reported net
revenues of US$785.2 million,
representing a 31.5% increase year-over-year. Net revenues from
educational programs and services for the second fiscal quarter
were US$723.3 million,
representing a 33.0% 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 second fiscal quarter of 2020 increased
by 63.3% year-over-year to approximately 3,789,200. The
higher-than-normal increase in the number of student enrollments is
primarily due to the division of the autumn semester into two
parts. Under this method, student enrollments in the autumn
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$759.9 million, representing a 21.1%
increase year-over-year. Non-GAAP operating costs and expenses for
the quarter, which exclude share-based compensation expenses, were
US$748.7 million, representing a
22.0% increase year-over-year.
- Cost of revenues increased by 19.6% year-over-year to
US$359.0 million, primarily due to
increases in teachers' compensation for more teaching hours and
higher rental costs for the increased number of schools and
learning centers in operation.
- Selling and marketing expenses increased by 17.7%
year-over-year to US$107.8
million.
- General and administrative expenses for the quarter
increased by 24.4% year-over-year to US$293.1 million. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, were US$282.1 million,
representing a 27.1% increase year-over-year.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, decreased by 18.1% to
US$11.2 million in the second
fiscal quarter of 2020.
Operating Income and Operating Margin
Operating income was US$25.3 million, compared to a loss from
operations of US$28.6 million in the
same period of the prior fiscal year. Non-GAAP income from
operations for the quarter was US$36.5 million, compared to non-GAAP loss
from operations of US$14.9 million in
the same period of the prior fiscal year.
Operating margin for the quarter was 3.2%, compared to negative
4.8% in the same period of the prior fiscal year. Non-GAAP
operating margin, which excludes share-based compensation expenses,
for the quarter was 4.7%, compared to negative 2.5% in the same
period of the prior fiscal year.
Net Income and EPS
Net income attributable to New Oriental for the quarter was
US$53.4 million, compared to a
net loss of US$25.8 million in the
same period of the prior fiscal year. Basic and diluted
earnings per ADS attributable to New Oriental were US$0.34 and US$0.34, respectively.
Non-GAAP Net Income and Non-GAAP EPS
Non-GAAP net income attributable to New Oriental for the quarter
was US$57.0 million,
representing a 147.8% increase from the same period of the prior
fiscal year. Non-GAAP basic and diluted earnings per ADS
attributable to New Oriental were US$0.36 and US$0.36, respectively.
Cash Flow
Net operating cash flow for the second fiscal quarter of 2020
was approximately US$291.8 million.
Capital expenditures for the quarter were US$52.4 million, which were primarily
attributable to opening of 78 facilities and renovations at
existing learning centers.
Balance Sheet
As of November 30, 2019, New
Oriental had cash and cash equivalents of US$1,047.6 million, as compared to
US$1,414.2 million as of May 31, 2019. In addition, the Company had
US$348.3 million in term
deposits, US$2,221.5 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
second quarter of fiscal year 2020 was US$1,570.4 million, an increase of 25.6% as
compared to US$1,250.3 million
at the end of the second quarter of fiscal year 2019.
Financial Results for the Six Months Ended November 30, 2019
For the first six months of fiscal year 2020, New Oriental
reported net revenues of US$1,857.0
million, representing a 27.5% increase year-over-year.
Total student enrollments in academic subjects tutoring and test
preparation courses in the first six months of fiscal year 2020
increased by 57.7% to approximately 6,398,400.
Operating income for the first six months of fiscal year
2020 was US$271.5 million,
representing a 104.5% increase year-over-year. Non-GAAP operating
income for the first six months of fiscal year 2020 was
US$293.7 million, representing an
83.1% increase year-over-year.
Operating margin for the first six months of fiscal year 2020
was 14.6%, compared to 9.1% for the same period of the prior fiscal
year. Non-GAAP operating margin, which excludes share-based
compensation expenses for the first six months of fiscal year 2020,
was 15.8%, compared to 11.0% for the same period of the prior
fiscal year.
Net income attributable to New Oriental for the first six months
of fiscal year 2020 was US$262.4
million, representing a 169.4% increase year-over-year.
Basic and diluted net income per ADS attributable to New Oriental
for the first six months of fiscal year 2020 amounted to
US$1.66 and US$1.65, respectively.
Non-GAAP net income attributable to New Oriental for the first
six months of fiscal year 2020 was US$287.1
million, representing a 38.6% increase year-over-year.
Non-GAAP basic and diluted net income per ADS attributable to New
Oriental for the first six months of fiscal year 2020 amounted to
US$1.81 and US$1.80, respectively.
Koolearn's Financial Highlights for the Six Months Ended
November 30, 2019
New Oriental's subsidiary, Koolearn Technology Holdings Limited
("Koolearn"), a leading online extracurricular education service
provider in China listed on the
Hong Kong Stock Exchange, announced its financial results under
International Financial Reporting Standards ("IFRS") for the first
six months of fiscal year 2020. Koolearn's financial information in
this section is presented in accordance with IFRS.
For the first six months ended
November 30, 2019, Koolearn recorded
revenues of RMB 567.6 million
(US$81.0 million), representing a
18.8% increase year-over-year, and recorded a net loss of
RMB87.5 million (US$12.5 million), compared to a net profit of
RMB36.2 million in the same period of
the prior fiscal year. Koolearn's gross profit was RMB317.1 million (US$45.2
million) and gross profit margin was 55.9% for the six
months ended November 30,
2019.
To capture the huge market opportunity in online education area,
Koolearn continued to invest more resources in executing new
initiatives in online K-12 after school tutoring business in fiscal
year 2020. This includes content development, teacher recruitment
and training, sales and marketing, R&D and other costs and
expenses that are necessary to drive the growth of new online
programs. Starting from fiscal year 2020, Koolearn also conducted a
restructuring of the college education business line with more
focus on college test preparation and overseas test preparation
businesses. The online K-12 after-school tutoring business reported
a year-over-year revenue growth of approximately 69.4% and a
year-over-year student enrollment growth of approximately 158.6%.
More specifically, student enrolments for its location-based live
interactive after-school tutoring courses ("DFUB") grew by 186.2%
year-over-year. As of November 30,
2019, the DFUB courses have been released in 128 cities in
China.
The translations of RMB amounts into U.S. dollars in this
section are presented solely for the convenience of the readers.
The conversion of RMB into U.S. dollars is based on the exchange
rate set forth in the H.10 statistical release of the Board of
Governors of the Federal Reserve System as of November 30, 2019, which was RMB7.0102 to US$1.00. The percentages stated in this section
are calculated based on the RMB amounts.
Outlook for Third Quarter of Fiscal Year 2020
New Oriental expects total net revenues in the third quarter of
fiscal year 2020 (December 1, 2019 to
February 29, 2020) to be in the range
of US$983.0 million to
US$1,006.4 million, representing
year-over-year growth in the range of 23% to 26%.
The projected growth rate of revenue in our functional currency
Renminbi is expected to be in the range of 26% to 29% for the third
quarter of fiscal year 2020. The exchange rate used to calculate
expected revenues for the third quarter of fiscal year 2020 is
6.95. The historical exchange rate used to calculate revenues for
the third quarter of fiscal year 2019 was 6.81.
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 January 20, 2020, U.S. Eastern Time (9 PM on January 20,
2020, Beijing/Hong Kong
Time).
Dial-in details for the earnings conference call are as
follows:
United
States:
|
+1-845-675-0437
|
Hong Kong,
China:
|
+852-3018-6771
|
Mainland
China:
|
400-620-8038
|
United
Kingdom:
|
+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
"7652629".
A replay of the conference call may be accessed by phone at the
following number until January 28,
2020:
International:
|
+61 2 8199
0299
|
Passcode:
|
7652629
|
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 third quarter of fiscal year 2020, 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 expenses 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. Charlotte Cheung
FTI Consulting
Tel: +852 3768 4732
Email: charlotte.cheung@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 November
30
|
|
As of May
31
|
2019
|
|
2019
|
(Unaudited)
|
|
(Audited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
1,047,581
|
|
1,414,171
|
Restricted
cash
|
43
|
|
43
|
Term
deposits
|
348,336
|
|
108,672
|
Short-term
investments
|
2,221,549
|
|
1,668,689
|
Accounts receivable,
net
|
5,878
|
|
3,300
|
Inventory,
net
|
28,859
|
|
29,046
|
Prepaid expenses and
other current assets, net
|
223,795
|
|
199,677
|
Amounts due from
related parties, current
|
39,162
|
|
42,644
|
Total current
assets
|
3,915,203
|
|
3,466,242
|
|
|
|
|
Restricted cash,
non-current
|
3,741
|
|
4,013
|
Property and
equipment, net
|
567,683
|
|
532,015
|
Land use rights,
net
|
6,207
|
|
6,405
|
Amounts due from
related parties, non-current
|
2,155
|
|
1,204
|
Long-term
deposits
|
55,739
|
|
49,742
|
Long-term prepaid
rents
|
512
|
|
442
|
Intangible assets,
net
|
11,548
|
|
13,935
|
Goodwill,
net
|
78,496
|
|
79,614
|
Long-term investments,
net
|
467,356
|
|
404,704
|
Deferred tax assets,
non-current, net
|
72,219
|
|
61,467
|
Right-of-use
assets
|
1,296,308
|
|
-
|
Other non-current
assets
|
16,970
|
|
26,776
|
Total
assets
|
6,494,137
|
|
4,646,559
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
(including accounts payable of the consolidated variable
interest entities without recourse to New Oriental of US$33,646 and
US$31,309
as of May 31, 2019 and November 30, 2019, respectively)
|
32,201
|
|
34,057
|
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$518,937 and US$539,813 as of May 31,
2019
and November 30, 2019, respectively)
|
582,991
|
|
576,521
|
Income taxes payable
(including income tax payable of the consolidated
variable interest entities without recourse to New Oriental of
US$79,067 and
US$115,054 as of May 31, 2019 and November 30, 2019,
respectively)
|
119,409
|
|
94,071
|
Amounts due to related
parties (including amounts due to related parties of the
consolidated variable interest entities without recourse to New
Oriental of
US$472 and US$598 as of May 31, 2019 and November 30, 2019,
respectively)
|
598
|
|
472
|
Deferred revenue
(including deferred revenue of the consolidated variable
interest entities without recourse to New Oriental of
US$1,268,318 and
US$1,566,037 as of May 31, 2019 and November 30, 2019,
respectively)
|
1,570,433
|
|
1,301,103
|
Operating Lease
Liability-current (including operating lease
liabilities-current
of the consolidated variable interest entities without recourse to
New Oriental of
nil and US$358,091 as of May 31, 2019 and November 30, 2019,
respectively)
|
362,528
|
|
-
|
|
|
|
|
Total current
liabilities
|
2,668,160
|
|
2,006,224
|
|
|
|
|
Deferred tax
liabilities, non-current (including deferred tax liabilities of
the
consolidated variable interest entities without recourse to New
Oriental of
US$18,607 and US$21,789 as of May 31, 2019 and November 30,
2019,
respectively)
|
18,050
|
|
18,781
|
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, 2019 and
November 30, 2019, respectively)
|
117,169
|
|
96,457
|
Operating lease
liabilities (including operating lease liabilities of the
consolidated variable interest entities without recourse to New
Oriental of nil
and US$921,668 as of May 31, 2019 and November 30, 2019,
respectively)
|
935,040
|
|
-
|
|
|
|
|
|
|
|
|
Total
liabilities
|
3,738,419
|
|
2,121,462
|
|
|
|
|
Equity
|
|
|
|
New Oriental
Education & Technology Group Inc. shareholders'
equity
|
2,594,469
|
|
2,360,686
|
Non-controlling interests
|
161,249
|
|
164,411
|
Total
equity
|
2,755,718
|
|
2,525,097
|
|
|
|
|
Total liabilities
and equity
|
6,494,137
|
|
4,646,559
|
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 November 30
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
Net
revenues
|
785,211
|
|
597,072
|
|
|
|
|
Operating cost and
expenses (note 1)
|
|
|
|
Cost of
revenues
|
358,962
|
|
300,105
|
Selling and
marketing
|
107,847
|
|
91,597
|
General and
administrative
|
293,103
|
|
235,647
|
|
|
|
|
Total operating
cost and expenses
|
759,912
|
|
627,349
|
Gain on disposal of a
subsidiary
|
-
|
|
1,724
|
Operating income
(loss)
|
25,299
|
|
(28,553)
|
Add: Gain (Loss) from
fair value change of long-term investments
|
6,713
|
|
(35,135)
|
|
|
|
|
Other income,
net
|
27,216
|
|
35,783
|
Provision for income
taxes
|
(14,077)
|
|
(11)
|
Income from equity
method investments
|
4,432
|
|
1,575
|
|
|
|
|
Net income
(loss)
|
49,583
|
|
(26,341)
|
|
|
|
|
Add: Net loss
attributable to non-controlling interests
|
3,854
|
|
515
|
|
|
|
|
Net income(loss)
attributable to New Oriental Education &
Technology Group Inc.'s shareholders
|
53,437
|
|
(25,826)
|
|
|
|
|
Net income(loss)
per common share
|
|
|
|
-
Basic
|
0.34
|
|
(0.16)
|
-
Diluted
|
0.34
|
|
(0.16)
|
|
|
|
|
Net income(loss)
per ADS (note 2)
|
|
|
|
-
Basic
|
0.34
|
|
(0.16)
|
-
Diluted
|
0.34
|
|
(0.16)
|
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 November 30
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
293,103
|
|
235,647
|
Less: Share-based
compensation expenses in general and
administrative expenses
|
10,988
|
|
13,687
|
Non-GAAP general and
administrative expenses
|
282,115
|
|
221,960
|
|
|
|
|
Total operating cost
and expenses
|
759,912
|
|
627,349
|
Less: Share-based
compensation expenses
|
11,215
|
|
13,687
|
Non-GAAP operating
cost and expenses
|
748,697
|
|
613,662
|
|
|
|
|
Operating
income(loss)
|
25,299
|
|
(28,553)
|
Add: Share-based
compensation expenses
|
11,215
|
|
13,687
|
Non-GAAP operating
income(loss)
|
36,514
|
|
(14,866)
|
|
|
|
|
Operating
margin
|
3.2%
|
|
(4.8%)
|
Non-GAAP operating
margin
|
4.7%
|
|
(2.5%)
|
|
|
|
|
Net income(loss)
attributable to New Oriental
|
53,437
|
|
(25,826)
|
Add: Share-based
compensation expenses
|
10,263
|
|
13,687
|
Add: (Gain) Loss from
fair value change of long-term
investments
|
(6,713)
|
|
35,135
|
Non-GAAP net income
attributable to New Oriental
|
56,987
|
|
22,996
|
|
|
|
|
Net income(loss) per
ADS attributable to New Oriental- Basic
(note 2)
|
0.34
|
|
(0.16)
|
Net
income(loss) per ADS attributable to New Oriental- Diluted
(note 2)
|
0.34
|
|
(0.16)
|
|
|
|
|
Non-GAAP net income
per ADS attributable to New Oriental -
Basic (note 2)
|
0.36
|
|
0.14
|
Non-GAAP net income
per ADS attributable to New Oriental -
Diluted (note 2)
|
0.36
|
|
0.14
|
|
|
|
|
Weighted average
shares used in calculating basic net income
per ADS (note 2)
|
158,429,080
|
|
158,690,714
|
Weighted average
shares used in calculating diluted net income
per ADS (note 2)
|
159,374,555
|
|
159,030,698
|
|
|
|
|
Non-GAAP income per
share - basic
|
0.36
|
|
0.14
|
Non-GAAP income per
share - diluted
|
0.36
|
|
0.14
|
Notes:
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the operating
cost and expenses as follows:
|
|
|
|
|
|
For the Three
Months Ended November 30
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
21
|
|
-
|
Selling and
marketing
|
206
|
|
-
|
General and
administrative
|
10,988
|
|
13,687
|
Total
|
11,215
|
|
13,687
|
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 Six Months
Ended November 30
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
Net
revenues
|
|
1,856,988
|
|
1,456,918
|
|
|
|
|
|
Operating costs
and expenses (note 1):
|
|
|
|
|
Cost of
revenues
|
|
799,191
|
|
667,504
|
Selling and
marketing
|
|
209,040
|
|
190,898
|
General and
administrative
|
|
577,262
|
|
469,309
|
Total operating
costs and expenses
|
|
1,585,493
|
|
1,327,711
|
Gain on disposal of a
subsidiary
|
|
-
|
|
3,575
|
Operating
income
|
|
271,495
|
|
132,782
|
Add: Gain (Loss) from
fair value change of long-term investments
|
|
(4,569)
|
|
(82,119)
|
|
|
|
|
|
Other income,
net
|
|
47,169
|
|
69,292
|
Provision for income
taxes
|
|
(64,913)
|
|
(25,695)
|
Income from equity
method investments
|
|
3,629
|
|
522
|
|
|
|
|
|
Net
income
|
|
252,811
|
|
94,782
|
|
|
|
|
|
Add: Net loss
attributable to non-controlling interests
|
|
9,616
|
|
2,624
|
|
|
|
|
|
Net income
attributable to New Oriental Education &
Technology Group
Inc.
|
|
262,427
|
|
97,406
|
|
|
|
|
|
|
|
|
|
|
Net income per
share attributable to New Oriental-Basic
|
|
1.66
|
|
0.61
|
|
|
|
|
|
Net income per
share attributable to New Oriental-Diluted
|
|
1.65
|
|
0.61
|
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Basic (note
2)
|
|
1.66
|
|
0.61
|
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Diluted
(note
2)
|
1.65
|
|
0.61
|
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 Six Months
Ended November 30
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
577,262
|
|
469,309
|
Less: Share-based
compensation expenses in general and
administrative expenses
|
21,607
|
|
27,607
|
Non-GAAP general and
administrative expenses
|
555,655
|
|
441,702
|
|
|
|
|
Total operating costs
and expenses
|
1,585,493
|
|
1,327,711
|
Less: Share-based
compensation expenses
|
22,235
|
|
27,607
|
Non-GAAP operating
costs and expenses
|
1,563,258
|
|
1,300,104
|
|
|
|
|
Operating
income
|
271,495
|
|
132,782
|
Add: Share-based
compensation expenses
|
22,235
|
|
27,607
|
Non-GAAP operating
income
|
293,730
|
|
160,389
|
|
|
|
|
Operating
margin
|
14.6%
|
|
9.1%
|
Non-GAAP operating
margin
|
15.8%
|
|
11.0%
|
|
|
|
|
Net income
attributable to New Oriental
|
262,427
|
|
97,406
|
Add: Share-based
compensation expenses
|
20,153
|
|
27,607
|
Add: Loss from fair
value change of long-term
investments
|
4,569
|
|
82,119
|
Non-GAAP net income
to New Oriental
|
287,149
|
|
207,132
|
|
|
|
|
Net income per ADS
attributable to New Oriental- Basic
(note 2)
|
1.66
|
|
0.61
|
Net income per ADS
attributable to New Oriental- Diluted
(note 2)
|
1.65
|
|
0.61
|
|
|
|
|
Non-GAAP net income
per ADS attributable to New Oriental -
Basic (note 2)
|
1.81
|
|
1.31
|
Non-GAAP net income
per ADS attributable to New Oriental -
Diluted (note 2)
|
1.80
|
|
1.30
|
|
|
|
|
Weighted average
shares used in calculating basic net income
per ADS (note 2)
|
158,337,268
|
|
158,631,953
|
Weighted average
shares used in calculating diluted net income
per ADS (note 2)
|
159,520,563
|
|
159,111,883
|
|
|
|
|
Non-GAAP income per
share - basic
|
1.81
|
|
1.31
|
Non-GAAP income per
share - diluted
|
1.80
|
|
1.30
|
Notes:
|
Note 1: Share-based
compensation expenses (in thousands) are included in the operating
costs and expenses as follows:
|
|
|
For the Six Months
Ended November 30
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
57
|
|
-
|
Selling and
marketing
|
571
|
|
-
|
General and
administrative
|
21,607
|
|
27,607
|
Total
|
22,235
|
|
27,607
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
View original
content:http://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-second-fiscal-quarter-ended-november-30-2019-300989564.html
SOURCE New Oriental Education and Technology Group Inc.