Quarterly Net Revenues Increased by 41.2%
Year-Over-Year
Quarterly Student Enrollments Increased by 7.7%
Year-Over-Year
BEIJING, April 24, 2018 /PRNewswire/ -- New Oriental
Education and Technology Group Inc. (the "Company" or "New
Oriental") (NYSE: EDU), the largest provider of private educational
services in China, today announced
its unaudited financial results for the third fiscal quarter ended
February 28, 2018, which is the third
quarter of New Oriental's fiscal year 2018.
Financial Highlights for the Third Fiscal Quarter Ended
February 28, 2018
- Total net revenues increased by 41.2% year-over-year to
US$618.1 million for the third fiscal
quarter of 2018.
- Operating income increased by 1.5% year-over-year to
US$58.4 million for the third fiscal
quarter of 2018.
- Net income attributable to New Oriental increased by 1.1%
year-over-year to US$68.4 million for
the third fiscal quarter of 2018.
Key Financial
Results
|
|
|
|
|
(in thousands US$,
except per ADS(1) data)
|
3Q
FY2018
|
3Q
FY2017
|
% of
change
|
Net
revenues
|
618,081
|
437,849
|
41.2%
|
Operating
income
|
58,367
|
57,515
|
1.5%
|
Non-GAAP operating
income (2)(3)
|
81,156
|
65,784
|
23.4%
|
Net income
attributable to New Oriental
|
68,376
|
67,619
|
1.1%
|
Non-GAAP net income
attributable to New Oriental (2)(3)
|
91,165
|
75,888
|
20.1%
|
Net income per ADS
attributable to New Oriental - basic
|
0.43
|
0.43
|
0.7%
|
Net income per ADS
attributable to New Oriental - diluted
|
0.43
|
0.43
|
0.7%
|
Non-GAAP net income
per ADS attributable to New Oriental -
basic(3)(4)
|
0.58
|
0.48
|
19.6%
|
Non-GAAP net income
per ADS attributable to New Oriental -
diluted(3)(4)
|
0.57
|
0.48
|
19.6%
|
(in thousands US$,
except per ADS(1) data)
|
9M
FY2018
|
9M
FY2017
|
% of
change
|
Net
revenues
|
1,746,429
|
1,313,156
|
33.0%
|
Operating
income
|
206,374
|
210,313
|
-1.9%
|
Non-GAAP operating
income(2)(3)
|
241,602
|
221,628
|
9.0%
|
Net income
attributable to New Oriental
|
231,048
|
219,041
|
5.5%
|
Non-GAAP net income
attributable to New Oriental(2)(3)
|
266,276
|
230,356
|
15.6%
|
Net income per ADS
attributable to New Oriental - basic
|
1.46
|
1.39
|
5.1%
|
Net income per ADS
attributable to New Oriental - diluted
|
1.46
|
1.39
|
5.1%
|
Non-GAAP net income
per ADS attributable to New Oriental -
basic(3)(4)
|
1.68
|
1.46
|
15.1%
|
Non-GAAP net income
per ADS attributable to New Oriental -
diluted(3)(4)
|
1.68
|
1.46
|
15.2%
|
(1) Each
ADS represents one common share.
|
(2) GAAP
represents Generally Accepted Accounting Principles in the United
States of America.
|
(3) New
Oriental provides net income attributable to New Oriental,
operating income and net income per ADS attributable to New
Oriental on a non-GAAP basis that excludes share-based compensation
expenses to provide supplemental information regarding its
operating performance. For more information on these non-GAAP
financial measures, please see the section captioned "About
Non-GAAP Financial Measures" and the tables captioned
"Reconciliations of Non-GAAP Measures to the Most Comparable GAAP
Measures" set forth at the end of this release.
|
(4) The
Non-GAAP net income per ADS is computed using Non-GAAP net income
and the same number of shares and ADSs used in GAAP basic and
diluted EPS calculation.
|
Operating Highlights for the Third Fiscal Quarter Ended
February 28, 2018
- Total student enrollments in academic subjects tutoring and
test preparation courses increased by 7.7% year-over-year to
approximately 861,400 for the third fiscal quarter of 2018.
- The total number of schools and learning centers was 1000 as of
February 28, 2018, an increase of 197
compared to 803 as of February 28,
2017, and an increase of 60 compared to 940 as of
November 30, 2017. The total number
of schools was 87 as of February 28,
2018.
Michael Minhong Yu, New
Oriental's Executive Chairman, commented, "We are pleased to
continue our strong momentum in driving top line growth for the
third quarter of fiscal year 2018. Our revenue increased by 41.2%,
exceeding our initial expectation once again. Our deferred revenue
balance recorded US$1,083.8 million at the end of the
quarter, up 42.5% year-over-year. This was mainly driven by the
significant increase in student enrollments in the second and third
quarters of fiscal year 2018, which reached a year-over-year growth
of 30% despite the influence of a much later Chinese New Year this
year. Our K-12 all-subjects after-school tutoring business
accelerated its growth momentum in the third quarter, leading to a
significant year-over-year revenue increase of 51%. Furthermore,
our U-Can middle and high school all-subjects after-school tutoring
business also recorded revenue growth of approximately 51% while
the POP Kids program grew by approximately 50% year-over-year. It
is also very encouraging to see sustained drive in enrollments and
cash proceeds from student registrations remained in the first
eight weeks of the fourth fiscal quarter, which grew year-over-year
by approximately 40% and 65%, respectively."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "We are committed to sustaining a
healthy balance between top line and bottom line growth as we
execute our well-proven 'Optimize the Market' strategy. Following a
strong track record in the previous three quarters, we continued to
make great strides in our planned acceleration in capacity
expansion across cities with superior growth potential and higher
operating efficiency. We added a net of 47 learning centers in 23
existing cities, opened two new schools in Lianyungang and
Yancheng, and rolled out three dual-teacher model schools and eight
learning centers in Jiaozuo, Dongguan and Haikou. Altogether, our total square meters of
classroom area by the end of this quarter increased by
approximately 41% year-over-year. Meanwhile, we continued to
strengthen our online and offline integrated standardized teaching
system in the K-12 business and deployed the standardized teaching
system in our overseas test preparation business in some of the
larger cities in China. Moreover,
we carried on our efforts in building our online business and
deepened investment in our pure online education platform,
Koolearn.com, which delivered a year-over-year revenue growth of
approximately 63% in this quarter, with registered users and paid
users up by approximately 88% and 70% respectively. With solid
support in resources and a series of new initiatives being rolled
out, our online K-12 after-school tutoring business reported a
robust year-over-year revenue growth of approximately 176%. This
reflected our endeavours and further boosted our confidence in
making strategic investments to capitalise on the booming online
education market and to drive up our top line growth."
Stephen Zhihui Yang, New
Oriental's Chief Financial Officer, commented, " As we consistently
pushed ahead with our capacity expansion strategy, our margin faced
short-term headwind in this quarter with the pressure contained at
a reasonable level. Non-GAAP operating margin for our language
training and test preparation business declined 140 basis points
year-over-year, which is in line with that of the previous quarter.
We continue to anticipate that the margin pressure will gradually
lessen and be lifted off over the fourth fiscal quarter and the
coming fiscal year, as our key focus remains to be the enhancement
in operational efficiency, utilization of facilities and cost
control as time progresses. We believe that with our well-proven
expansion strategy, our strategic vision and investments will
continue to create sustainable long-term value for our customers
and shareholders."
Financial Results for the Third Fiscal Quarter Ended
February 28, 2018
Net Revenues
For the third fiscal quarter of 2018, New Oriental reported net
revenues of US$618.1 million,
representing a 41.2% increase year-over-year. Net revenues from
educational programs and services for the third fiscal quarter were
US$564.8 million, representing a
43.0% increase year-over-year. The growth was mainly driven by
increases in student enrollments in academic subjects tutoring and
test preparation courses in the recent two quarters. As the
registration for the 2018 winter and spring semester was
concentrated in the last month of the second fiscal quarter, it
contributed an exceptional 43% year-over-year enrollment growth in
the period. Following that, student enrollments continued to grow
by 7.7% year-over-year in the third fiscal quarter. The combined
enrollment growth for the second and third quarter reached 30%.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$559.7 million, representing a 47.2% increase
year-over-year. Non-GAAP operating costs and expenses for the
quarter, which exclude share-based compensation expenses, were
US$536.9 million, representing a
44.3% increase year-over-year.
- Cost of revenues increased by 46.5% year-over-year to
US$268.8 million, primarily due to
increases in teachers' compensation for more teaching hours and
rental cost for increased number of schools and learning centers in
operation.
- Selling and marketing expenses increased by 38.2%
year-over-year to US$77.2 million,
primarily due to increases in brand promotion expenses and selling
and marketing staff's compensation.
- General and administrative expenses for the quarter
increased by 51.7% year-over-year to US$213.7 million. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, were US$190.9 million,
representing a 43.9% increase year-over-year, primarily due to
increased headcount as the Company expanded its network of schools
and learning centers, as well as increases in R&D expenses and
human resources expenses related to the development of our online
and offline integrated education ecosystem.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, increased by 175.6% to
US$22.8 million in the third fiscal
quarter of 2018, due to the grants of a total of 1.5 million
restricted share units of the Company to employees and directors on
October 27, 2017 with graded vesting
over three years.
Operating Income and Operating Margin
Operating income for the quarter was US$58.4 million, a 1.5% increase from
US$57.5 million in the same period of
the prior fiscal year. Non-GAAP income from operations for the
quarter was US$81.2 million, a 23.4%
increase from US$65.8 million in the
same period of the prior fiscal year.
Operating margin for the quarter was 9.4%, compared to 13.1% in
the same period of the prior fiscal year. Non-GAAP operating
margin, which excludes share-based compensation expenses, for the
quarter was 13.1%, compared to 15.0% in the same period of the
prior fiscal year.
Net Income and EPS
Net income attributable to New Oriental for the quarter was
US$68.4 million, representing a 1.1%
increase from the same period of the prior fiscal year. Basic and
diluted earnings per ADS attributable to New Oriental were
US$0.43 and US$0.43, respectively.
Non-GAAP Net Income and Non-GAAP EPS
Non-GAAP net income attributable to New Oriental for the quarter
was US$91.2 million, representing a
20.1% increase from the same period of the prior fiscal year.
Non-GAAP basic and diluted earnings per ADS attributable to New
Oriental were US$0.58 and
US$0.57, respectively.
Cash Flow
Net operating cash flow for the third fiscal quarter of 2018 was
approximately US$108.2 million.
Capital expenditures for the quarter were US$60.0 million, which were primarily
attributable to the opening of five new schools and 66 learning
centers and renovations at existing learning centers.
Balance Sheet
As of February 28, 2018, New
Oriental had cash and cash equivalents of US$721.5 million, compared to US$641.0 million as of May
31, 2017. In addition, the Company had US$113.5 million in term deposits, US$1,682.5 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 2018 was US$1,083.8 million, an increase of 42.5% from
US$760.5 million at the end of the
third quarter of fiscal year 2017.
Financial Results for the Nine Months Ended February 28, 2018
For the first nine months of fiscal year 2018, New Oriental
reported net revenues of US$1,746.4
million, representing a 33.0% increase year-over-year.
Total student enrollments in academic subjects tutoring and test
preparation courses in the first nine months of fiscal year 2018
increased by 24.2% to approximately 4,271,500.
Income from operations for the first nine months of fiscal year
2018 was US$206.4 million,
representing a 1.9% decrease year-over-year. Non-GAAP income from
operations for the first nine months of fiscal year 2018 was
US$241.6 million, representing a 9.0%
increase year-over-year.
Operating margin for the first nine months of fiscal year 2018
was 11.8%, compared to 16.0% 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
2018, was 13.8%, compared to 16.9% for the same period of the prior
fiscal year.
Net income attributable to New Oriental for the first nine
months of fiscal year 2018 was US$231.0
million, representing a 5.5% increase year-over-year. Basic
and diluted net income per ADS attributable to New Oriental for the
first nine months of fiscal year 2018 amounted to US$1.46 and US$1.46, respectively.
Non-GAAP net income attributable to New Oriental for the first
nine months of fiscal year 2018 was US$266.3
million, representing a 15.6% increase year-over-year.
Non-GAAP basic and diluted net income per ADS attributable to New
Oriental for the first nine months of fiscal year 2018 amounted to
US$1.68 and US$1.68 respectively.
Outlook for Fourth Quarter of Fiscal Year 2018
New Oriental expects total net revenues in the fourth quarter of
fiscal year 2018 (March 1, 2018 to
May 31, 2018) to be in the range of
US$661.4 million to US$680.9 million, representing year-over-year
growth in the range of 36% to 40%.
This forecast reflects New Oriental's current and preliminary
view, which is subject to change.
Conference Call Information
New Oriental's management will host an earnings conference call
at 8 AM on April 24, 2018, U.S. Eastern Time (8 PM on April 24,
2018, Beijing/Hong Kong
Time).
Dial-in details for the earnings conference call are as
follows:
US:
|
+1-845-675-0437
|
Hong Kong:
|
+852-3018-6771
|
UK:
|
+44-20-3621-4779
|
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call. The passcode is
"7194007."
A replay of the conference call may be accessed by phone at the
following number until May 2,
2018:
International:
|
+61-2-8199-0299
|
Passcode:
|
7194007
|
Additionally, a live and archived webcast of the conference call
will be available at http://investor.neworiental.org.
About New Oriental
New Oriental is the largest provider of private educational
services in China based on the
number of program offerings, total student enrollments and
geographic presence. New Oriental offers a wide range of
educational programs, services and products consisting primarily of
language training and test preparation, primary and secondary
school education, online education, content development and
distribution, overseas study consulting services, pre-school
education and study tour. New Oriental's ADSs, each of which
represents one common share, currently trade on the New York Stock
Exchange under the symbol "EDU."
For more information about New Oriental, please visit
http://www.neworiental.org/english/.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the outlook for the fourth quarter of fiscal year 2018, quotations
from management in this announcement, as well as New Oriental's
strategic and operational plans, contain forward-looking
statements. New Oriental may also make written or oral
forward-looking statements in its reports filed or furnished to the
U.S. Securities and Exchange Commission, in its annual reports to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about New Oriental's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: our ability to attract students without a significant
decrease in course fees; our ability to continue to hire, train and
retain qualified teachers; our ability to maintain and enhance our
"New Oriental" brand; our ability to effectively and efficiently
manage the expansion of our school network and successfully execute
our growth strategy; the outcome of ongoing, or any future,
litigation or arbitration, including those relating to copyright
and other intellectual property rights; competition in the private
education sector in China; changes in our revenues and certain cost
or expense items as a percentage of our revenues; the expected
growth of the Chinese private education market; Chinese
governmental policies relating to private educational services and
providers of such services; health epidemics and other outbreaks in
China; and general economic conditions in China. Further
information regarding these and other risks is included in our
annual report on Form 20-F and other documents filed with the
Securities and Exchange Commission. New Oriental does not undertake
any obligation to update any forward-looking statement, except as
required under applicable law. All information provided in this
press release and in the attachments is as of the date of this
press release, and New Oriental undertakes no duty to update such
information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement New Oriental's consolidated financial results
presented in accordance with GAAP, New Oriental uses the following
measures defined as non-GAAP financial measures by the SEC: net
income excluding share-based compensation expenses, operating
income excluding share-based compensation expenses, operating costs
and expenses excluding share-based compensation expenses, general
and administrative expenses excluding share-based compensation
expenses, operating margin excluding share-based compensation
expenses, and basic and diluted net income per ADS and per share
excluding share-based compensation expenses. The presentation of
these non-GAAP financial measures is not intended to be considered
in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP. For more
information on these non-GAAP financial measures, please see the
tables captioned "Reconciliations of non-GAAP measures to the most
comparable GAAP measures" set forth at the end of this release.
New Oriental believes that these non-GAAP financial measures
provide meaningful supplemental information regarding its
performance and liquidity by excluding share-based compensation
expenses that may not be indicative of its operating performance
from a cash perspective. New Oriental believes that both management
and investors benefit from referring to these non-GAAP financial
measures in assessing its performance and when planning and
forecasting future periods. These non-GAAP financial measures also
facilitate management's internal comparisons to New Oriental's
historical performance and liquidity. New Oriental computes its
non-GAAP financial measures using the same consistent method from
quarter to quarter. New Oriental believes these non-GAAP financial
measures are useful to investors in allowing for greater
transparency with respect to supplemental information used by
management in its financial and operational decision making. A
limitation of using these non-GAAP measures is that they exclude
share-based compensation charge that has been and will continue to
be for the foreseeable future a significant recurring expense in
our business. Management compensates for these limitations by
providing specific information regarding the GAAP amounts excluded
from each non-GAAP measure. The accompanying tables have more
details on the reconciliations between GAAP financial measures that
are most directly comparable to non-GAAP financial measures.
Contacts
For investor and media inquiries, please contact:
Ms. Nan Dong
FTI Consulting
Tel: +852-3768-4569
Email: nan.dong@fticonsulting.com
Ms. Sisi Zhao
New Oriental Education and Technology Group Inc.
Tel: +86-10-6260-5568
Email: zhaosisi@xdf.cn
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
As of February
28
|
|
As of May
31
|
2018
|
|
2017
|
(Unaudited)
|
|
(Audited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
721,530
|
|
641,018
|
Restricted cash,
current
|
44
|
|
44
|
Term
deposits
|
113,513
|
|
195,085
|
Short-term
investments
|
1,682,515
|
|
1,312,942
|
Accounts receivable,
net
|
5,427
|
|
3,343
|
Inventory
|
42,176
|
|
31,742
|
Prepaid expenses and
other current assets, net
|
165,470
|
|
119,397
|
Amounts due from
related parties, current
|
1,312
|
|
5,948
|
Long-term investments
due within one year
|
-
|
|
16,743
|
Total current
assets
|
2,731,987
|
|
2,326,262
|
|
|
|
|
Property and
equipment, net
|
418,826
|
|
282,800
|
Land use rights,
net
|
3,862
|
|
3,668
|
Amounts due from
related parties, non-current
|
2,150
|
|
1,748
|
Deferred tax assets,
net
|
31,369
|
|
28,858
|
Long-term
deposit
|
36,747
|
|
24,023
|
Long-term prepaid
rent
|
226
|
|
849
|
Restricted cash,
non-current
|
3,693
|
|
3,608
|
Intangible assets,
net
|
9,155
|
|
4,005
|
Goodwill,
net
|
32,122
|
|
14,083
|
Long-term
investments, net
|
297,854
|
|
217,259
|
Other non-current
assets
|
6,707
|
|
17,816
|
Total
assets
|
3,574,698
|
|
2,924,979
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
(including accounts payable of the
consolidated VIE without recourse to New Oriental of
US$24,138 and US$40,085 as of May 31, 2017 and February 28,
2018, respectively)
|
40,500
|
|
24,258
|
Accrued expenses and
other current liabilities (including accrued
expenses and other current liabilities of the consolidated VIE
without recourse to New Oriental of US$238,864 and
US$282,036 as of May 31, 2017 and February 28, 2018,
respectively)
|
315,239
|
|
260,700
|
Income taxes payable
(including income tax payable of the
consolidated VIE without recourse to New Oriental of
US$40,306 and US$47,858 as of May 31, 2017 and February 28,
2018, respectively)
|
56,127
|
|
51,045
|
Amounts due to
related parties (including amounts due to related
parties of the consolidated VIE without recourse to New
Oriental
of US$48 and US$216 as of May 31, 2017 and February 28,
2018, respectively)
|
216
|
|
48
|
Deferred revenue
(including deferred revenue of the
consolidated VIE without recourse to New Oriental of
US$833,932 and US$1,079,190 as of May 31, 2017 and
February 28, 2018, respectively)
|
1,083,783
|
|
866,630
|
|
|
|
|
Total current
liabilities
|
1,495,865
|
|
1,202,681
|
|
|
|
|
Deferred tax
liabilities (including deferred tax liabilities of the
consolidated VIE without recourse to New Oriental of US$2,174
and US$3,115 as of May 31, 2017 and February 28, 2018,
respectively)
|
3,279
|
|
2,220
|
|
|
|
|
Total long-term
liabilities
|
3,279
|
|
2,220
|
|
|
|
|
Total
liabilities
|
1,499,144
|
|
1,204,901
|
|
|
|
|
Noncontrolling
interests
|
46,625
|
|
39,130
|
|
|
|
|
Total New
Oriental Education & Technology Group Inc.
shareholders' equity
|
2,028,929
|
|
1,680,948
|
|
|
|
|
Total
shareholders' equity
|
2,075,554
|
|
1,720,078
|
|
|
|
|
Total liabilities
and shareholders' equity
|
3,574,698
|
|
2,924,979
|
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
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
Revenues:
|
|
|
|
Educational programs
and services
|
564,752
|
|
394,797
|
Books and
others
|
53,329
|
|
43,052
|
Total net
revenues
|
618,081
|
|
437,849
|
|
|
|
|
Operating costs
and expenses (note 1):
|
|
|
|
Cost of
revenues
|
268,823
|
|
183,551
|
Selling and
marketing
|
77,209
|
|
55,882
|
General and
administrative
|
213,682
|
|
140,901
|
Total operating
costs and expenses
|
559,714
|
|
380,334
|
Operating
Income
|
58,367
|
|
57,515
|
|
|
|
|
Other income,
net
|
21,902
|
|
19,750
|
|
|
|
|
Provision for income
taxes
|
(13,409)
|
|
(10,583)
|
Loss from equity
method investments
|
(258)
|
|
(260)
|
Net
income
|
66,602
|
|
66,422
|
|
|
|
|
Net loss attributable to
the noncontrolling interests
|
1,774
|
|
1,197
|
|
|
|
|
Net income
attributable to New Oriental Education &
Technology Group Inc.
|
68,376
|
|
67,619
|
|
|
|
|
|
|
|
|
Net income per
share attributable to New Oriental-Basic
|
0.43
|
|
0.43
|
|
|
|
|
Net income per
share attributable to New Oriental-Diluted
|
0.43
|
|
0.43
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Basic
(note 2)
|
0.43
|
|
0.43
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Diluted
(note 2)
|
0.43
|
|
0.43
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATION OF
NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP
MEASURES
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
For the Three
Months Ended February 28
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
213,682
|
|
140,901
|
Share-based
compensation expense in general
and administrative expenses
|
22,789
|
|
8,269
|
Non-GAAP general and
administrative expenses
|
190,893
|
|
132,632
|
|
|
|
|
Total operating costs
and expenses
|
559,714
|
|
380,334
|
Share-based
compensation expenses
|
22,789
|
|
8,269
|
Non-GAAP operating
costs and expenses
|
536,925
|
|
372,065
|
|
|
|
|
Operating
income
|
58,367
|
|
57,515
|
Share-based
compensation expenses
|
22,789
|
|
8,269
|
Non-GAAP operating
income
|
81,156
|
|
65,784
|
|
|
|
|
Operating
margin
|
9.4%
|
|
13.1%
|
Non-GAAP operating
margin
|
13.1%
|
|
15.0%
|
|
|
|
|
Net income
attributable to New Oriental
|
68,376
|
|
67,619
|
Share-based
compensation expenses
|
22,789
|
|
8,269
|
Non-GAAP net income
attributable to New
Oriental
|
91,165
|
|
75,888
|
|
|
|
|
Net income per ADS
attributable to New
Oriental- Basic (note 2)
|
0.43
|
|
0.43
|
Net income per ADS
attributable to New
Oriental- Diluted (note 2)
|
0.43
|
|
0.43
|
|
|
|
|
Non-GAAP net income
per ADS attributable to
New Oriental - Basic (note 2)
|
0.58
|
|
0.48
|
Non-GAAP net income
per ADS attributable to
New Oriental - Diluted (note 2)
|
0.57
|
|
0.48
|
|
|
|
|
Weighted average
shares used in calculating
basic net income per ADS (note 2)
|
158,253,243
|
|
157,607,555
|
Weighted average
shares used in calculating
diluted net income per ADS (note 2)
|
158,736,059
|
|
158,039,414
|
|
|
|
|
Non-GAAP income per
share - basic
|
0.58
|
|
0.48
|
Non-GAAP income per
share - diluted
|
0.57
|
|
0.48
|
Notes:
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the operating
costs
and expenses as follows:
|
|
|
|
|
|
For the Three
Months Ended February 28
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
General and
administrative expense
|
22,789
|
|
8,269
|
Total
|
22,789
|
|
8,269
|
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
|
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
|
For the Nine
Months Ended February 28
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
Revenues:
|
|
|
|
Educational programs
and services
|
1,591,829
|
|
1,201,297
|
Books and
others
|
154,600
|
|
111,859
|
Total net
revenues
|
1,746,429
|
|
1,313,156
|
|
|
|
|
Operating costs
and expenses (note 1):
|
|
|
|
Cost of
revenues
|
766,275
|
|
550,329
|
Selling and
marketing
|
223,203
|
|
166,519
|
General and
administrative
|
550,577
|
|
385,995
|
Total operating
costs and expenses
|
1,540,055
|
|
1,102,843
|
Operating
income
|
206,374
|
|
210,313
|
|
|
|
|
Other income,
net
|
70,413
|
|
49,681
|
|
|
|
|
Provision for income
taxes
|
(43,260)
|
|
(36,164)
|
Loss from equity
method investments
|
(9)
|
|
(2,943)
|
Net
income
|
233,518
|
|
220,887
|
|
|
|
|
Net gain attributable
to the noncontrolling interests
|
(2,470)
|
|
(1,846)
|
|
|
|
|
Net income
attributable to New Oriental Education &
Technology Group Inc.
|
231,048
|
|
219,041
|
|
|
|
|
|
|
|
|
Net income per
share attributable to New Oriental-Basic
|
1.46
|
|
1.39
|
|
|
|
|
Net income per
share attributable to New Oriental-Diluted
|
1.46
|
|
1.39
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Basic
(note 2)
|
1.46
|
|
1.39
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Diluted
(note 2)
|
1.46
|
|
1.39
|
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
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
550,577
|
|
385,995
|
Share-based
compensation expense in
general and administrative expenses
|
35,228
|
|
11,315
|
Non-GAAP general and
administrative
expenses
|
515,349
|
|
374,680
|
|
|
|
|
Total operating costs
and expenses
|
1,540,055
|
|
1,102,843
|
Share-based
compensation expenses
|
35,228
|
|
11,315
|
Non-GAAP operating
costs and expenses
|
1,504,827
|
|
1,091,528
|
|
|
|
|
Operating
income
|
206,374
|
|
210,313
|
Share-based
compensation expenses
|
35,228
|
|
11,315
|
Non-GAAP operating
income
|
241,602
|
|
221,628
|
|
|
|
|
Operating
margin
|
11.8%
|
|
16.0%
|
Non-GAAP operating
margin
|
13.8%
|
|
16.9%
|
|
|
|
|
Net income
attributable to New Oriental
|
231,048
|
|
219,041
|
Share-based
compensation expenses
|
35,228
|
|
11,315
|
Non-GAAP net income
attributable to
New Oriental
|
266,276
|
|
230,356
|
|
|
|
|
Net income per ADS
attributable to New
Oriental- Basic (note 2)
|
1.46
|
|
1.39
|
Net income per ADS
attributable to New
Oriental- Diluted (note 2)
|
1.46
|
|
1.39
|
|
|
|
|
Non-GAAP net income
per ADS
attributable to New Oriental - Basic
(note 2)
|
1.68
|
|
1.46
|
Non-GAAP net income
per ADS
attributable to New Oriental - Diluted
(note 2)
|
1.68
|
|
1.46
|
|
|
|
|
Weighted average
shares used in
calculating basic net income per ADS
(note 2)
|
158,117,868
|
|
157,508,173
|
Weighted average
shares used in
calculating diluted net income per ADS
(note 2)
|
158,429,934
|
|
157,910,916
|
|
|
|
|
Non-GAAP income per
share - basic
|
1.68
|
|
1.46
|
Non-GAAP income per
share - diluted
|
1.68
|
|
1.46
|
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
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
General and
administrative expense
|
35,228
|
|
11,315
|
Total
|
35,228
|
|
11,315
|
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
|
|
View original
content:http://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-third-fiscal-quarter-ended-february-28-2018-300635201.html
SOURCE New Oriental Education and Technology Group Inc.