BEIJING, April 26,
2022 /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, 2022, which is the third
quarter of New Oriental's fiscal year 2022.
Financial Highlights for the Third Fiscal Quarter Ended
February 28, 2022
- Total net revenues decreased by 48.4% year-over-year to
US$614.1 million for the third fiscal
quarter of 2022.
- Operating loss was US$141.2
million for the third fiscal quarter of 2022, compared to an
income of US$101.5 million in the
same period of the prior fiscal year.
- Net loss attributable to New Oriental was US$122.4 million for the third fiscal quarter of
2022, compared to an income of US$151.3
million in the same period of the prior fiscal year.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
3Q
FY2022
|
3Q
FY2021
|
% of
change
|
Net revenues
|
614,091
|
1,190,498
|
-48.4%
|
Operating (loss) /
income
|
(141,194)
|
101,470
|
-239.1%
|
Non-GAAP operating
(loss) / income (2)(3)
|
(111,232)
|
115,892
|
-196.0%
|
Net (loss) / income
attributable to New Oriental
|
(122,439)
|
151,326
|
-180.9%
|
Non-GAAP net (loss) /
income attributable to New Oriental (2)(3)
|
(95,503)
|
163,236
|
-158.5%
|
Net (loss) / income per
ADS attributable to New Oriental - basic
|
(0.72)
|
0.90
|
-180.6%
|
Net (loss) / income per
ADS attributable to New Oriental - diluted
|
(0.72)
|
0.89
|
-180.8%
|
Non-GAAP net (loss) /
income per ADS attributable to New Oriental -
basic(3)(4)
|
(0.56)
|
0.97
|
-158.3%
|
Non-GAAP net (loss) /
income per ADS attributable to New Oriental -
diluted(3)(4)
|
(0.56)
|
0.96
|
-158.4%
|
|
|
|
|
(in thousands US$,
except per ADS(1) data)
|
9M
FY2022
|
9M
FY2021
|
% of
change
|
Net revenues
|
2,581,223
|
3,064,553
|
-15.8%
|
Operating (loss) /
income
|
(876,864)
|
219,628
|
-499.2%
|
Non-GAAP operating
(loss) / income (2)(3)
|
(772,680)
|
268,363
|
-387.9%
|
Net (loss) / income
attributable to New Oriental
|
(998,419)
|
379,880
|
-362.8%
|
Non-GAAP net (loss) /
income attributable to New Oriental (2)(3)
|
(885,899)
|
416,902
|
-312.5%
|
Net (loss) / income per
ADS attributable to New Oriental - basic
|
(5.89)
|
2.33
|
-352.6%
|
Net (loss) / income per
ADS attributable to New Oriental - diluted
|
(5.89)
|
2.32
|
-353.7%
|
Non-GAAP net (loss) /
income per ADS attributable to New Oriental -
basic(3)(4)
|
(5.22)
|
2.56
|
-304.3%
|
Non-GAAP net (loss) /
income per ADS attributable to New Oriental -
diluted(3)(4)
|
(5.22)
|
2.55
|
-305.1%
|
|
(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 (loss) / income attributable to New Oriental,
operating (loss) / income and net (loss) /
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 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 (loss)
/ income per ADS attributable to New Oriental is computed
using Non-GAAP net
(loss) /
income 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, 2022
- The total number of schools and learning centers was 847 as of
February 28, 2022, a decrease of 778
and 822 compared to 1,625 as of February 28,
2021 and 1,669 as of May 31,
2021, respectively. The total number of schools was 111 as
of February 28, 2022.
Michael Yu, New Oriental's
Executive Chairman, commented, "Although the Company is in a
restructuring phase, we are pleased to see a promising trend in our
remaining key businesses and a positive momentum across many of our
new initiatives. In the first nine months of the current fiscal
year, our remaining key business, the overseas test preparation and
overseas study consulting business increased by 15% year-over-year.
Our domestic test preparation business targeting adults and
university students recorded a rapid growth of approximately 59%
year-over-year. Simultaneously, we are actively exploring various
new business opportunities, including non-academic tutoring,
intelligent learning system and devices, study tour and research
camp, educational materials and digitalized smart study solutions,
as well as exam preparation courses designed for students with
junior college diplomas to obtain bachelor's degrees. These new
businesses are at their early stage but we firmly believe they
present a bright future for the Company, and we are confident that
by leveraging our brand recognition and educational resources
accumulated over our operating history, these new businesses will
start to contribute meaningful revenue from the next fiscal
year."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "During the last two fiscal
quarters, we have largely completed our restructuring of businesses
and operations to comply with the government policies in
China. The total number of schools
and learning centers was reduced to 847 by end of this fiscal
quarter. Looking ahead, we will continue our efforts in developing
and revamping our online-merge-offline teaching platform, and keep
leveraging our educational infrastructure and technology strength
across our remaining key businesses and new initiatives to provide
more advanced and diversified educational services to our customers
of all ages. Our pure online education platform, Koolearn.com,
continued to expand online educational offerings to adults and
university students, and actively seek business opportunities in
new areas, including livestream commerce business, institutional
cooperation and new intelligent learning innovations."
Stephen Zhihui Yang, New
Oriental's Executive President and Chief Financial Officer,
commented, " We maintained a strong cash position throughout the
whole restructuring process. By the end of this quarter, our cash
and cash equivalents, term deposits and short-term investments
totaled approximately US$4.4 billion.
In the first half of this fiscal year, the Company incurred
considerable costs due to the termination of lease agreements in
relation to the closure of its learning centers and employee
layoffs. We believe that the loss caused by the restructuring is
temporary. We are confident in the sustainable profitability of all
our remaining key businesses, as well as the growth and profit
potential of our new initiatives. The Company's management team
will continue to work together to seek profitable growth. Our
continued commitment to high quality services and operational
efficiency will generate more values to our customers, society and
shareholders over the long term."
Financial Results for the Third Fiscal Quarter Ended
February 28, 2022
Net Revenues
For the third fiscal quarter of 2022, New Oriental reported net
revenues of US$614.1 million,
representing a 48.4% decrease year-over-year. Net revenues from
educational programs and services for the third fiscal quarter were
US$506.4 million, representing a
54.1% decrease year-over-year. The decline was mainly due to
the cessation of K-9 academic after-school tutoring services in
order to comply with the government policies in China.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$755.3 million, representing a 30.6%
decrease year-over-year. Non-GAAP operating costs and expenses for
the quarter, which exclude share-based compensation expenses, were
US$725.3 million, representing a
32.5% decrease year-over-year. The decrease was primarily due to
the reduction of facilities and number of staff as a result of the
restructuring in the last two fiscal quarters.
- Cost of revenues decreased by 30.9% year-over-year to
US$372.7 million.
- Selling and marketing expenses decreased by 40.0%
year-over-year to US$93.7
million.
- General and administrative expenses for the quarter
decreased by 26.6% year-over-year to US$288.8 million. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, were US$259.6 million,
representing a 32.3% decrease year-over-year.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, increased by 107.8% to
US$30.0 million in the third
fiscal quarter of 2022. The increase is due to the grants of
restricted share units of the Company to employees and directors in
May 2021 with graded vesting over
three years.
Operating Loss / Income and Operating Margin
Operating loss was US$141.2 million, compared to an income
of US$101.5 million in the same period of the prior fiscal
year. Non-GAAP loss from operations for the quarter was
US$111.2 million, compared to an
income of US$115.9 million in the same period of the
prior fiscal year.
Operating margin for the quarter was negative 23.0%,
compared to 8.5% in the same period of the prior fiscal year.
Non-GAAP operating margin, which excludes share-based compensation
expenses, for the quarter was negative 18.1%, compared to 9.7%
in the same period of the prior fiscal year.
Net Loss / Income and Net Loss per ADS
Net loss attributable to New Oriental for the quarter was
US$122.4 million, compared to an
income of US$151.3 million in the same period of the prior
fiscal year. Basic and diluted net loss per ADS attributable to New
Oriental were US$0.72 and
US$0.72, respectively.
Non-GAAP Net Loss / Income and Non-GAAP Net Loss per
ADS
Non-GAAP net loss attributable to New Oriental for the quarter
was US$95.5 million, compared to
an income of US$163.2 million in the same period of the prior
fiscal year. Non-GAAP basic and diluted net loss per ADS
attributable to New Oriental were US$0.56 and US$0.56, respectively.
Cash Flow
Net operating cash outflow for the third fiscal quarter of 2022
was approximately US$235.0 million and capital expenditures
for the quarter were US$37.4 million.
Balance Sheet
As of February 28, 2022, New
Oriental had cash and cash equivalents of US$1,466.8 million. In addition, the Company
had US$915.1 million in term
deposits and US$2,028.1 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 2022 was US$971.3 million, a decrease of 47.9% as
compared to US$1,865.7 million at the
end of the third quarter of fiscal year 2021. The decrease is
primarily due to the cessation of K-9 academic after-school
tutoring services in order to comply with the government policies
in China.
Financial Results for the Nine Months Ended February 28,
2022
For the first nine months of fiscal year 2022, New Oriental
reported net revenues of 2,581.2 million, representing a 15.8%
decrease year-over-year.
Loss from operations for the first nine months of fiscal year
2022 was US$876.9 million, compared
to an income of US$219.6 million in the same period of the
prior fiscal year. Non-GAAP loss from operations for the first nine
months of fiscal year 2022 was US$772.7
million, compared to an income of US$268.4 million in
the same period of the prior fiscal year.
Operating margin for the first nine months of fiscal year 2022
was negative 34.0%, compared to 7.2% 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 2022, was negative 29.9%, compared to 8.8% for the
same period of the prior fiscal year.
Net loss attributable to New Oriental for the first nine months
of fiscal year 2022 was US$998.4
million, compared to an income of US$379.9 million in
the same period of the prior fiscal year. Basic and diluted net
loss per ADS attributable to New Oriental for the first nine months
of fiscal year 2022 amounted to US$5.89 and US$5.89, respectively.
Non-GAAP net loss attributable to New Oriental for the first
nine months of fiscal year 2022 was US$885.9
million, compared to an income of US$416.9 million in
the same period of the prior fiscal year. Non-GAAP basic and
diluted net loss per ADS attributable to New Oriental for the first
nine months of fiscal year 2022 amounted to US$5.22 and US$5.22, respectively.
Conference Call Information
New Oriental's management will host an earnings conference call
at 8 AM on April 26, 2022, U.S. Eastern Time (8 PM on April 26,
2022, Beijing/Hong Kong
Time). Participants can join the conference using the below
options:
Dialling-in to the conference call:
Please register in advance of the conference, using the link
provided below. Upon registering, you will be provided with
participant dial-in numbers, passcode and unique registrant ID.
Conference call registration link:
http://apac.directeventreg.com/registration/event/7678797. It will
automatically direct you to the registration page of "New Oriental
Third Fiscal Quarter 2022 Earnings Conference Call" where you may
fill in your details for RSVP. If it requires you to enter a
participant conference ID, please enter "7678797".
In the 10 minutes prior to the call start time, you may use the
conference access information (including dial in number(s), direct
event passcode and registrant ID) 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 by phone at the
following number until May 4,
2022:
International:
|
+61 2
90034211
|
Passcode:
|
7678797
|
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
test preparation, language training for adults, education materials
and distribution, online education, and other services. 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 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 / (loss) excluding share-based compensation expenses and
gain / (loss) from fair value change of long-term investments,
operating income / (loss) 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 / (loss) 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. Sisi Zhao
Ms.
Rita Fong
New Oriental Education and Technology Group Inc.
FTI
Consulting
Tel:
+86-10-6260-5568
Tel:
+852 3768
4548
Email: zhaosisi@xdf.cn
Email: rita.fong@fticonsulting.com
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
As of February
28
|
|
As of May
31
|
2022
|
|
2021
|
(Unaudited)
|
|
(Audited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
1,466,779
|
|
1,612,211
|
Term
deposits
|
915,103
|
|
1,214,025
|
Short-term
investments
|
2,028,129
|
|
3,434,726
|
Accounts
receivable, net
|
14,314
|
|
8,667
|
Inventory,
net
|
30,732
|
|
31,175
|
Prepaid
expenses and other current assets, net
|
207,369
|
|
269,233
|
Amounts
due from related parties, current
|
29,628
|
|
4,118
|
Total current
assets
|
4,692,054
|
|
6,574,155
|
|
|
|
|
Restricted
cash, non-current
|
44,463
|
|
19,916
|
Property
and equipment, net
|
516,938
|
|
865,030
|
Land use
rights, net
|
3,859
|
|
13,989
|
Amounts
due from related parties, non-current
|
1,687
|
|
4,157
|
Long-term
deposits
|
36,080
|
|
74,796
|
Intangible
assets, net
|
3,291
|
|
4,836
|
Goodwill,
net
|
73,757
|
|
73,254
|
Long-term
investments, net
|
582,703
|
|
537,749
|
Deferred
tax assets, non-current, net
|
18,675
|
|
103,587
|
Right-of-use assets
|
688,234
|
|
1,857,533
|
Other
non-current assets
|
7,481
|
|
22,051
|
Total
assets
|
6,669,222
|
|
10,151,053
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
(including accounts payable of the consolidated variable interest
entities without recourse to
New Oriental of US$36,032 and US$25,108 as of May 31, 2021
and February 28,2022, respectively)
|
28,001
|
|
38,441
|
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$900,877 and US$601,432 as of
May 31, 2021 and February 28,2022, respectively)
|
602,470
|
|
908,231
|
Income taxes payable
(including income tax payable of the consolidated variable interest
entities without
recourse to New Oriental of US$46,248 and US$64,019 as of May 31,
2021 and February 28,2022, respectively)
|
72,528
|
|
84,321
|
Amounts due to related
parties (including amounts due to related parties of the
consolidated variable interest
entities without recourse to New Oriental of US$33 and US$21 as of
May 31, 2021 and February 28, 2022,
respectively)
|
21
|
|
33
|
Deferred revenue
(including deferred revenue of the consolidated variable interest
entities without recourse to
New Oriental of US$1,923,007 and US$969,453 as of May 31, 2021 and
February 28,2022, respectively)
|
971,255
|
|
1,926,386
|
Operating lease
liability-current (including operating lease liabilities-current of
the consolidated variable interest
entities without recourse to New Oriental of US$501,049 and
US$210,787 as of May 31, 2021 and February
28, 2022, respectively)
|
215,660
|
|
514,033
|
|
|
|
|
Total current
liabilities
|
1,889,935
|
|
3,471,445
|
|
|
|
|
Deferred tax
liabilities, non-current (including deferred tax liabilities of the
consolidated variable interest entities
without recourse to New Oriental of US$12,924 and US$18,269 as of
May 31, 2021 and February 28, 2022,
respectively)
|
18,551
|
|
13,172
|
Unsecured senior notes
(including unsecured senior notes of the consolidated variable
interest entities without
recourse to the New Oriental of nil and nil as of May 31, 2021 and
February 28, 2022, respectively)
|
113,174
|
|
297,631
|
Operating lease
liabilities (including operating lease liabilities of the
consolidated variable interest entities
without recourse to New Oriental of US$1,333,961 and US$534,881 as
of May 31, 2021 and February 28, 2022,
respectively)
|
542,980
|
|
1,350,629
|
|
|
|
|
Total long-term
liabilities
|
674,705
|
|
1,661,432
|
|
|
|
|
Total
liabilities
|
2,564,640
|
|
5,132,877
|
|
|
|
|
Equity
|
|
|
|
New
Oriental Education & Technology Group Inc. shareholders'
equity
|
4,022,771
|
|
4,913,275
|
Non-controlling interests
|
81,811
|
|
104,901
|
Total
equity
|
4,104,582
|
|
5,018,176
|
|
|
|
|
Total liabilities
and equity
|
6,669,222
|
|
10,151,053
|
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
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
614,091
|
|
1,190,498
|
|
|
|
|
Operating cost and
expenses (note 1)
|
|
|
|
Cost of
revenues
|
372,747
|
|
539,499
|
Selling and
marketing
|
93,706
|
|
156,084
|
General and
administrative
|
288,832
|
|
393,445
|
|
|
|
|
Total operating cost
and expenses
|
755,285
|
|
1,089,028
|
Operating
(loss)/income
|
(141,194)
|
|
101,470
|
Gain/(Loss) from fair
value change of long-term investments
|
1,072
|
|
(2,443)
|
|
|
|
|
Other income,
net
|
35,702
|
|
68,077
|
Provision for income
taxes
|
(16,863)
|
|
(46,971)
|
(Loss)/Gain from equity
method investments
|
(4,366)
|
|
6,509
|
Net
(loss)/income
|
(125,649)
|
|
126,642
|
|
|
|
|
Add: Net loss
attributable to non-controlling interests
|
3,210
|
|
24,684
|
Net (loss)/income
attributable to New Oriental Education & Technology Group
Inc.'s shareholders
|
(122,439)
|
|
151,326
|
|
|
|
|
|
|
|
|
Net (loss)/income
per share attributable to New Oriental-Basic (note
2)
|
(0.07)
|
|
0.09
|
|
|
|
|
Net (loss)/income
per share attributable to New Oriental-Diluted (note
2)
|
(0.07)
|
|
0.09
|
|
|
|
|
Net (loss)/income
per ADS attributable to New Oriental-Basic (note 2)
|
(0.72)
|
|
0.90
|
|
|
|
|
Net (loss)/income
per ADS attributable to New Oriental-Diluted (note
2)
|
(0.72)
|
|
0.89
|
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 Three Months
Ended February 28
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
288,832
|
|
393,445
|
Less: Share-based
compensation expenses in general and
administrative expenses
|
29,222
|
|
10,108
|
Non-GAAP general and
administrative expenses
|
259,610
|
|
383,337
|
|
|
|
|
Total operating cost
and expenses
|
755,285
|
|
1,089,028
|
Less: Share-based
compensation expenses
|
29,962
|
|
14,422
|
Non-GAAP operating cost
and expenses
|
725,323
|
|
1,074,606
|
|
|
|
|
Operating
(loss)/income
|
(141,194)
|
|
101,470
|
Add: Share-based
compensation expenses
|
29,962
|
|
14,422
|
Non-GAAP operating
(loss)/income
|
(111,232)
|
|
115,892
|
|
|
|
|
Operating
margin
|
-23.0%
|
|
8.5%
|
Non-GAAP operating
margin
|
-18.1%
|
|
9.7%
|
|
|
|
|
Net (loss)/income
attributable to New Oriental
|
(122,439)
|
|
151,326
|
Add: Share-based
compensation expenses
|
28,008
|
|
9,467
|
Less: Gain/(loss) from
fair value change of long-term
investments
|
1,072
|
|
(2,443)
|
Non-GAAP net
(loss)/income attributable to New Oriental
|
(95,503)
|
|
163,236
|
|
|
|
|
Net (loss)/income per
ADS attributable to New Oriental - Basic
(note 2)
|
(0.72)
|
|
0.90
|
Net (loss)/income per
ADS attributable to New Oriental -
Diluted (note 2)
|
(0.72)
|
|
0.89
|
|
|
|
|
Non-GAAP net
(loss)/income per ADS attributable to New
Oriental - Basic (note 2)
|
(0.56)
|
|
0.97
|
Non-GAAP net
(loss)/income per ADS attributable to New
Oriental - Diluted (note 2)
|
(0.56)
|
|
0.96
|
|
|
|
|
Weighted average shares
used in calculating basic net
(loss)/income per ADS (note 2)
|
1,696,966,183
|
|
1,689,712,150
|
Weighted average shares
used in calculating diluted net
(loss)/income per ADS (note 2)
|
1,696,966,183
|
|
1,695,315,497
|
|
|
|
|
Non-GAAP (loss)/income
per share - basic
|
(0.06)
|
|
0.10
|
Non-GAAP (loss)/income
per share - diluted
|
(0.06)
|
|
0.10
|
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
|
|
|
2022
|
|
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
Cost of
revenues
|
48
|
|
2,393
|
|
Selling and
marketing
|
692
|
|
1,921
|
|
General and
administrative
|
29,222
|
|
10,108
|
|
Total
|
29,962
|
|
14,422
|
|
|
|
|
|
|
|
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
For the Three Months
Ended February 28
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
Net cash (used
in)/provided by operating activities
|
(234,965)
|
|
23,314
|
Net cash provided
by/(used in) investing activities
|
753,586
|
|
(1,122,254)
|
Net cash (used
in)/provided by financing activities
|
(66,727)
|
|
13,364
|
Effect of exchange rate
changes
|
9,218
|
|
23,644
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
461,112
|
|
(1,061,932)
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
1,050,130
|
|
2,648,124
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
1,511,242
|
|
1,586,192
|
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
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
2,581,223
|
|
3,064,553
|
|
|
|
|
Operating costs and
expenses (note 1):
|
|
|
|
Cost of
revenues
|
1,506,464
|
|
1,458,028
|
Selling
and marketing
|
371,109
|
|
406,555
|
General
and administrative
|
1,580,514
|
|
980,342
|
|
|
|
|
Total operating
costs and expenses
|
3,458,087
|
|
2,844,925
|
Operating
(loss)/income
|
(876,864)
|
|
219,628
|
Loss from fair value
change of investments
|
(13,251)
|
|
(4,597)
|
|
|
|
|
Other income,
net
|
33,344
|
|
195,578
|
Provision for income
taxes
|
(130,694)
|
|
(112,910)
|
(Loss)/gain from equity
method investments
|
(46,144)
|
|
7,556
|
Net
(loss)/income
|
(1,033,609)
|
|
305,255
|
|
|
|
|
Add: Net loss
attributable to non-controlling interests
|
35,190
|
|
74,625
|
Net (loss)/income
attributable to New Oriental Education &
Technology Group Inc.
|
(998,419)
|
|
379,880
|
|
|
|
|
|
|
|
|
Net (loss)/income
per share attributable to New Oriental-Basic
(note 2)
|
(0.59)
|
|
0.23
|
|
|
|
|
Net (loss)/income
per share attributable to New Oriental-Diluted
(note 2)
|
(0.59)
|
|
0.23
|
|
|
|
|
Net (loss)/income
per ADS attributable to New Oriental-Basic
(note 2)
|
(5.89)
|
|
2.33
|
|
|
|
|
Net (loss)/income
per ADS attributable to New Oriental-Diluted
(note 2)
|
(5.89)
|
|
2.32
|
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
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
1,580,514
|
|
980,342
|
Less: Share-based
compensation expenses in general and
administrative expenses
|
106,698
|
|
34,655
|
Non-GAAP general and
administrative expenses
|
1,473,816
|
|
945,687
|
|
|
|
|
Total operating costs
and expenses
|
3,458,087
|
|
2,844,925
|
Less: Share-based
compensation expenses
|
104,184
|
|
48,735
|
Non-GAAP operating
costs and expenses
|
3,353,903
|
|
2,796,190
|
|
|
|
|
Operating
(loss)/income
|
(876,864)
|
|
219,628
|
Add: Share-based
compensation expenses
|
104,184
|
|
48,735
|
Non-GAAP operating
(loss)/income
|
(772,680)
|
|
268,363
|
|
|
|
|
Operating
margin
|
-34.0%
|
|
7.2%
|
Non-GAAP operating
margin
|
-29.9%
|
|
8.8%
|
|
|
|
|
Net (loss)/income
attributable to New Oriental
|
(998,419)
|
|
379,880
|
Add: Share-based
compensation expenses
|
99,269
|
|
32,425
|
Less: Loss from fair
value change of long-term investments
|
(13,251)
|
|
(4,597)
|
Non-GAAP net
(loss)/income to New Oriental
|
(885,899)
|
|
416,902
|
|
|
|
|
Net (loss)/income per
ADS attributable to New Oriental-
Basic (note 2)
|
(5.89)
|
|
2.33
|
Net (loss)/income per
ADS attributable to New Oriental-
Diluted (note 2)
|
(5.89)
|
|
2.32
|
|
|
|
|
Non-GAAP net
(loss)/income per ADS attributable to New
Oriental - Basic (note 2)
|
(5.22)
|
|
2.56
|
Non-GAAP net
(loss)/income per ADS attributable to New
Oriental - Diluted (note 2)
|
(5.22)
|
|
2.55
|
|
|
|
|
Weighted average shares
used in calculating basic net
(loss)/income per ADS (note 2)
|
1,696,234,912
|
|
1,630,427,098
|
Weighted average shares
used in calculating diluted net
(loss)/income per ADS (note 2)
|
1,696,234,912
|
|
1,637,074,362
|
|
|
|
|
Non-GAAP (loss)/income
per share - basic
|
(0.52)
|
|
0.26
|
Non-GAAP (loss)/income
per share - diluted
|
(0.52)
|
|
0.25
|
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
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
(157)
|
|
6,229
|
Selling and
marketing
|
(2,357)
|
|
7,851
|
General and
administrative
|
106,698
|
|
34,655
|
Total
|
104,184
|
|
48,735
|
|
|
|
|
Note 2: Each ADS
represents ten common shares. For the three and nine months ended
February 28, 2021,
the weighted average number of ADS and earnings per ADS have been
retrospectively adjusted to reflect the
ADS ratio change from each ADS representing one common share to
each 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
|
|
|
2022
|
|
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
|
|
|
|
|
Net cash (used
in)/provided by operating activities
|
(1,309,800)
|
|
825,590
|
|
Net cash provided
by/(used in) investing activities
|
1,406,960
|
|
(1,919,054)
|
|
Net cash (used
in)/provided by financing activities
|
(179,986)
|
|
1,654,835
|
|
Effect of exchange rate
changes
|
(38,059)
|
|
105,397
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
(120,885)
|
|
666,768
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
1,632,127
|
|
919,424
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
1,511,242
|
|
1,586,192
|
|
View original
content:https://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-third-fiscal-quarter-ended-february-28-2022-301532876.html
SOURCE New Oriental Education and Technology Group Inc.