BEIJING, July 23, 2019 /PRNewswire/ -- New Oriental
Education & Technology Group Inc. (the "Company" or "New
Oriental") (NYSE: EDU), the largest provider of private educational
services in China, today announced
its unaudited financial results for the fourth fiscal quarter ended
May 31, 2019.
Financial Highlights for the Fourth Fiscal Quarter Ended
May 31, 2019
- Total net revenues increased by 20.2% year-over-year to
US$842.9 million for the fourth
fiscal quarter of 2019.
- Operating income increased by 36.0% year-over-year to
US$77.0 million for the fourth fiscal
quarter of 2019.
- Non-GAAP operating income, which excludes share-based
compensation expenses, increased by 30.3% year-over-year to
US$102.7 million for the fourth
fiscal quarter of 2019.
- Net income attributable to New Oriental decreased by 33.5%
year-over-year to US$43.2 million for
the fourth fiscal quarter of 2019.
- Non-GAAP net income attributable to New Oriental, which
excludes share-based compensation expenses and gain / (loss) from
fair value change of long-term investments, increased by 8.9%
year-over-year to US$95.1 million for the fourth fiscal
quarter of 2019.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
4Q
FY2019
|
4Q
FY2018
|
% of
change
|
Net
revenues
|
842,851
|
701,001
|
20.2%
|
Operating
income
|
76,972
|
56,585
|
36.0%
|
Non-GAAP operating
income (2)(3)
|
102,712
|
78,800
|
30.3%
|
Net
income attributable to New Oriental
|
43,248
|
65,082
|
-33.5%
|
Non-GAAP net income
attributable to New Oriental (2)(3)
|
95,075
|
87,297
|
8.9%
|
Net income per ADS
attributable to New Oriental - basic
|
0.27
|
0.41
|
-33.4%
|
Net income per ADS
attributable to New Oriental - diluted
|
0.27
|
0.41
|
-33.6%
|
Non-GAAP net income
per ADS attributable to New Oriental
- basic(3)(4)
|
0.60
|
0.55
|
9.2%
|
Non-GAAP net income
per ADS attributable to New Oriental
- diluted(3)(4)
|
0.60
|
0.55
|
8.8%
|
|
(in thousands US$,
except per ADS(1) data)
|
FY2019
|
FY2018
|
% of
change
|
Net
revenues
|
3,096,491
|
2,447,430
|
26.5%
|
Operating
income
|
305,534
|
262,959
|
16.2%
|
Non-GAAP operating
income(2)(3)
|
376,870
|
320,402
|
17.6%
|
Net
income attributable to New Oriental
|
238,065
|
296,130
|
-19.6%
|
Non-GAAP net income
attributable to New Oriental(2)(3)
|
411,080
|
353,573
|
16.3%
|
Net income per ADS
attributable to New Oriental - basic
|
1.50
|
1.87
|
-19.7%
|
Net income per ADS
attributable to New Oriental - diluted
|
1.50
|
1.87
|
-19.9%
|
Non-GAAP net income
per ADS attributable to New Oriental
- basic(3)(4)
|
2.60
|
2.24
|
16.2%
|
Non-GAAP net income
per ADS attributable to New Oriental
- diluted(3)(4)
|
2.58
|
2.23
|
15.9%
|
|
|
|
|
(1) Each ADS represents one common share.
|
(2) GAAP represents Generally Accepted Accounting Principles
in the United States of America.
|
(3) New Oriental provides net income attributable to New
Oriental, operating income and net income per ADS
attributable
to New Oriental on a non-GAAP basis that excludes share-based
compensation expenses and
gain /
(loss) from fair value change of long-term investments to
provide supplemental information regarding
its operating
performance. For more information on these non-GAAP financial
measures, please see the
section captioned "About Non-GAAP Financial Measures" and the
tables captioned "Reconciliations of
Non-GAAP Measures to the Most Comparable GAAP Measures" set
forth at the end of this release.
|
(4) The Non-GAAP net income per ADS is computed using
Non-GAAP net income and the same number of
shares and ADSs
used in GAAP basic and diluted EPS calculation.
|
Operating Highlights for the Fourth Fiscal Quarter Ended
May 31, 2019
- Total student enrollments in academic subjects tutoring and
test preparation courses increased by 33.9% year-over-year to
approximately 2,756,000 for the fourth fiscal quarter of 2019.
- The total number of schools and learning centers was 1,233 as
of May 31, 2019, an increase of 152
compared to 1,081 as of May 31, 2018,
and an increase of 69 compared to 1,164 as of
February 28, 2019. The total number
of schools was 95 as of May 31,
2019.
Michael Minhong Yu, New
Oriental's Executive Chairman, commented, "We are delighted to
conclude the fiscal year 2019 with continued robust growth on the
top line as well as improvement in operating margin. In the fourth
quarter, we recorded a top line growth of 20.2%, or 28.4% if
computed in Renminbi. Our key growth driver, the K-12 after-school
tutoring business, achieved a year-over-year revenue growth of
approximately 28.5%, or 37.2% if computed in Renminbi. Furthermore,
our U-Can middle and high school all-subjects after-school tutoring
business grew by approximately 27.2%, or 35.9% if computed in
Renminbi, while our POP Kids program achieved a growth of
approximately 31.0%, or 39.9% if computed in Renminbi. Looking
ahead, we will remain focused on enhancing the quality and
standards of our educational products and services, and strive to
deliver maximum value to our students."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "We once again delivered a
strong set of results through our execution of the well-proven
"Optimize the Market" strategy. During the quarter, we added a net
total of 65 learning centers in existing cities and opened three
new offline training schools and one learning center in the cities
of Baotou, Changshu and Yuci. In the fiscal year 2019, we added a
total of 152 new facilities, including 141 new learning centers in
existing cities, nine offline training facilities in six new cities
and two dual-teacher model facilities in two low-tier cities.
Altogether, the total square meters of our classroom area by the
end of the fiscal year 2019 increased by approximately 24%
year-over-year. We also continued to strategically deepen our
investment into the dual-teacher model classes and new initiatives
for K-12 tutoring in our pure online education platform,
Koolearn.com. With the innovative application of technology in our
education services, we are well-placed to continue to capture new
business opportunities in lower-tier cities and remote areas."
Stephen Zhihui Yang, New
Oriental's Chief Financial Officer, commented, "Our capacity grew
steadily throughout the entire fiscal year, in line with our
expansion plan, while we continued to emphasize on improving
our operational efficiency. Riding on last quarter's strong bottom
line performance, we once again delivered another year-over-year
operating margin expansion in this quarter. During the quarter, our
non-GAAP operating income increased by 30.3% year over year to
approximately US$102.7 million, and
non-GAAP operating margin rose by 100 basis points to 12.2% from
11.2% a year ago. As we enter the fiscal year 2020, we will
continue to leverage our online and offline integrated education
system across all business lines, and improve efficiency by using
standardized, modularized and systemized operating process. 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 Fourth Fiscal Quarter Ended
May 31, 2019
Net Revenues
For the fourth fiscal quarter of 2019, New Oriental reported net
revenues of US$842.9 million,
representing a 20.2% increase year-over-year. Net revenues from
educational programs and services for the fourth fiscal quarter
were US$717.0 million, representing a
25.1% 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 fourth fiscal quarter of 2019 increased
by 33.9% year-over-year to approximately 2,756,000.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$765.9 million, representing an 18.9% increase
year-over-year. Non-GAAP operating costs and expenses for the
quarter, which exclude share-based compensation expenses, were
US$740.2 million, representing a
19.0% increase year-over-year.
- Cost of revenues increased by 24.0% year-over-year
to US$371.2 million, primarily due to
increases in teachers' compensation for more teaching hours and
rental costs for the increased number of schools and learning
centers in operation.
- Selling and marketing expenses increased by 4.8%
year-over-year to US$105.9
million.
- General and administrative expenses for the quarter
increased by 18.4% year-over-year to US$288.8 million. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, were US$264.4 million,
representing a 19.2% increase year-over-year. The increase was
primarily due to increased headcount as the Company grew its
network of schools and learning centers, as well as increases in
R&D expenses and human resources expenses related to the
development of the Company's online and offline integrated
education ecosystem.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, increased by 15.9% to
US$25.7 million in the fourth fiscal
quarter of 2019.
Operating Income and Operating Margin
Operating income was US$77.0
million, a 36.0% increase from US$56.6 million in the same period of the prior
fiscal year. Non-GAAP operating income for the quarter was
US$102.7 million, a 30.3% increase
from US$78.8 million in the same
period of the prior fiscal year.
Operating margin for the quarter was 9.1%, compared to 8.1%
in the same period of the prior fiscal year. Non-GAAP
operating margin, which excludes share-based compensation expenses,
for the quarter was 12.2%, compared to 11.2% in the same period of
the prior fiscal year.
Net Income and EPS
Net income attributable to New Oriental for the quarter was
US$43.2 million, representing a 33.5%
decrease from the same period of the prior fiscal year. Basic and
diluted earnings per ADS attributable to New Oriental were
US$0.27 and US$0.27, respectively.
Non-GAAP Net Income and Non-GAAP EPS
Non-GAAP net income attributable to New Oriental for the quarter
was US$95.1 million, representing a
8.9% increase from the same period of the prior fiscal year.
Non-GAAP basic and diluted earnings per ADS attributable to New
Oriental were US$0.60 and
US$0.60, respectively.
Cash Flow
Net operating cash flow for the fourth fiscal quarter of 2019
was approximately US$326.9 million.
Capital expenditures for the quarter were US$80.0 million, which were primarily
attributable to the opening of 104 facilities and renovations at
existing learning centers.
Balance Sheet
As of May 31, 2019, New Oriental
had cash and cash equivalents of US$1,157.1
million, compared to US$983.3 million as of May 31, 2018. In addition, the Company had
US$365.7 million in term deposits and
US$1,668.7 million in short-term
investment.
New Oriental's deferred revenue balance, which is cash collected
from registered students for courses and recognized proportionally
as revenue as the instructions are delivered, at the end of the
fourth quarter of the fiscal year 2019 was US$1,301.1 million, an increase of 2.4% from
US$1,270.2 million at the end of the
fourth quarter of the fiscal year 2018. The Company adopted Revenue
from Contracts with Customers ("Topic 606") starting June 1, 2018, and as a result, as of May 31, 2019, US$76.1
million of deferred revenue was reclassified to
accrued expenses and other current liabilities, representing
estimated amounts of tuition collected that may be refunded in the
future if students withdraw from a course while there are remaining
classes. In addition, the lower than usual increase was due to the
change of tuition fees collection schedule for K-12 after-school
tutoring courses to comply with the latest regulatory
requirements.
Financial Results for the Fiscal Year Ended May 31, 2019
For the fiscal year 2019 ended May 31,
2019, New Oriental reported net revenues of US$3,096.5 million, representing a 26.5% increase
year-over-year.
Total student enrollments in academic subjects tutoring and test
preparation courses in the fiscal year 2019 increased by 32.4% to
approximately 8,382,700.
Operating income for the fiscal year 2019 was US$305.5 million, representing a 16.2% increase
year-over-year. Non-GAAP operating income for the fiscal year 2019
was US$376.9 million, representing a
17.6% increase year-over-year.
Operating margin for the fiscal year 2019 was 9.9%, compared to
10.7% for the same period of the prior fiscal year. Non-GAAP
operating margin, which excludes share-based compensation expenses
for the fiscal year 2019, was 12.2%, compared to 13.1% for the same
period of the prior fiscal year.
Net income attributable to New Oriental for the fiscal year 2019
was US$238.1 million, representing a
19.6% decrease year-over-year. Basic and diluted net income per ADS
attributable to New Oriental for the fiscal year 2019 amounted to
US$1.50 and US$1.50, respectively.
Non-GAAP net income attributable to New Oriental for the fiscal
year 2019 was US$411.1 million,
representing a 16.3% increase year-over-year. Non-GAAP basic and
diluted net income per ADS attributable to New Oriental for the
fiscal year 2019 amounted to US$2.60
and US$2.58 respectively.
Outlook for the First Quarter of the Fiscal Year 2020
New Oriental expects total net revenues in the first quarter of
the fiscal year 2020 (June 1, 2019 to
August 31, 2019) to be in the range
of US$1,050.5 million to
US$1,075.5 million, representing
year-over-year growth in the range of 22% to 25%.
The projected growth rate of revenue in our functional currency
Renminbi is expected to be in the range of 26% to 29% for the first
quarter of the fiscal year 2020.
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 July 23, 2019, U.S. Eastern Time (8 PM on July 23,
2019, Beijing/Hong Kong
Time).
Dial-in details for the earnings conference call are as
follows:
US: +1-845-675-0437
Hong Kong: +852-3018-6771
UK: +44-20-3621-4779
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call. The passcode is
"2291305".
A replay of the conference call may be accessed by phone at the
following number until July 31,
2019:
International: +61-2-8199-0299
Passcode: 2291305
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 first quarter of the 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 charge and gain / (loss) from fair value
change of long-term investments that has been and will continue to
be for the foreseeable future a significant recurring expense in
our business. Management compensates for these limitations by
providing specific information regarding the GAAP amounts excluded
from each non-GAAP measure. The accompanying tables have more
details on the reconciliations between GAAP financial measures that
are most directly comparable to non-GAAP financial measures.
Contacts
For investor and media inquiries, please contact:
Ms. Joanne Wong
FTI Consulting
Tel: +852-3768-4747
Email: NewOriental@fticonsulting.com
Ms. Sisi Zhao
New Oriental Education & Technology Group Inc.
Tel: +86-10-6260-5568
Email: zhaosisi@xdf.cn
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
As of May
31
|
|
As of May
31
|
2019
|
|
2018
|
(Unaudited)
|
|
(Audited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
1,157,113
|
|
983,319
|
Restricted
cash
|
43
|
|
47
|
Term
deposits
|
365,730
|
|
107,741
|
Short-term
investments
|
1,668,689
|
|
1,623,763
|
Accounts
receivable, net
|
3,300
|
|
3,179
|
Inventory,
net
|
29,046
|
|
40,175
|
Prepaid
expenses and other current assets, net
|
199,677
|
|
182,095
|
Amounts due
from related parties, current
|
42,644
|
|
1,595
|
Total current
assets
|
3,466,242
|
|
2,941,914
|
|
|
|
|
Restricted
cash, non-current
|
4,013
|
|
3,399
|
Property and
equipment, net
|
532,015
|
|
449,592
|
Land use
rights, net
|
6,405
|
|
3,785
|
Amounts due
from related parties, non-current
|
1,204
|
|
2,226
|
Long-term
deposits
|
49,742
|
|
40,099
|
Long-term
prepaid rents
|
442
|
|
191
|
Intangible
assets, net
|
13,935
|
|
8,544
|
Goodwill,
net
|
79,614
|
|
31,729
|
Long-term
investments, net
|
404,704
|
|
433,333
|
Deferred tax
assets, non-current, net
|
61,467
|
|
43,323
|
Other
non-current assets
|
26,776
|
|
19,577
|
Total
assets
|
4,646,559
|
|
3,977,712
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY AND EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable (including accounts payable of the consolidated
variable interest entities without
recourse to New Oriental of
US$39,279 and US$33,646 as of May 31, 2018
and May 31, 2019,
respectively)
|
34,057
|
|
39,889
|
Accrued
expenses and other current liabilities (including accrued
expenses and other current liabilities of
the consolidated variable
interest entities without recourse to New
Oriental of US$335,955
and US$518,937 as of May 31, 2018 and May
31, 2019,
respectively)
|
576,521
|
|
373,537
|
Income taxes
payable (including income tax payable of the
consolidated variable interest entities
without recourse to New
Oriental of US$54,844 and US$79,067 as of
May 31, 2018 and
May 31, 2019,
respectively)
|
94,071
|
|
67,233
|
Amounts due to
related parties (including amounts due to related
parties of the consolidated variable
interest entities without
recourse to New Oriental of US$30 and
US$472 as of May 31,
2018 and May 31, 2019,
respectively)
|
472
|
|
30
|
Deferred
revenue (including deferred revenue of the consolidated
variable interest entities without
recourse to New Oriental of
US$1,244,748 and US$1,268,318 as of May
31, 2018 and May 31,
2019, respectively)
|
1,301,103
|
|
1,270,195
|
|
|
|
|
Total current
liabilities
|
2,006,224
|
|
1,750,884
|
|
|
|
|
Deferred tax
liabilities, non-current (including deferred tax liabilities
of the consolidated variable interest
entities without recourse to
New Oriental of US$13,782 and US$18,607 as
of May 31, 2018
and May 31, 2019,
respectively)
|
18,781
|
|
12,133
|
Long term loan
(includingLong term loan of the consolidated
variable interest entities without
recourse to New Oriental of nil
and nil as of May 31, 2018 and May 31,
2019, respectively)
|
96,457
|
|
-
|
Total long-term
liabilities
|
115,238
|
|
12,133
|
|
|
|
|
Total
liabilities
|
2,121,462
|
|
1,763,017
|
|
|
|
|
Mezzanine
equity
|
-
|
|
206,624
|
Redeemable non-controlling interests
|
|
|
|
Equity
|
|
|
|
New Oriental Education & Technology Group Inc.
shareholders'
equity
|
2,360,686
|
|
1,991,589
|
Non-controlling interests
|
164,411
|
|
16,482
|
Total
equity
|
2,525,097
|
|
2,008,071
|
|
|
|
|
Total liabilities,
mezzanine equity and equity
|
4,646,559
|
|
3,977,712
|
|
|
|
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
|
|
For the Three
Months Ended May 31
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
Net
revenues
|
842,851
|
|
701,001
|
|
|
|
|
Operating cost and
expenses (note 1)
|
|
|
|
Cost of
revenues
|
371,241
|
|
299,465
|
Selling and
marketing
|
105,931
|
|
101,046
|
General and
administrative
|
288,759
|
|
243,905
|
Total operating
cost and expenses
|
765,931
|
|
644,416
|
Gain on disposal of a
subsidiary
|
52
|
|
-
|
Operating
income
|
76,972
|
|
56,585
|
Loss from fair value
change of long-term investments
|
(29,044)
|
|
-
|
Other income,
net
|
21,535
|
|
23,652
|
Provision for income
taxes
|
(30,555)
|
|
(16,148)
|
Loss from equity
method investments
|
(1,077)
|
|
(370)
|
|
|
|
|
Net income
|
37,831
|
|
63,719
|
Add: Net loss
attributable to non-controlling interests
|
5,417
|
|
1,363
|
|
|
|
|
Net income
attributable to New Oriental Education &
Technology Group Inc.'s shareholders
|
43,248
|
|
65,082
|
|
|
|
|
Net income per
common share
|
|
|
|
-
Basic
|
0.27
|
|
0.41
|
-
Diluted
|
0.27
|
|
0.41
|
|
|
|
|
Net income per ADS
(note 2)
|
|
|
|
-
Basic
|
0.27
|
|
0.41
|
-
Diluted
|
0.27
|
|
0.41
|
|
|
|
|
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 May 31
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
288,759
|
|
243,905
|
Less: Share-based
compensation expenses in general and
administrative expenses
|
24,401
|
|
22,215
|
Non-GAAP general and
administrative expenses
|
264,358
|
|
221,690
|
|
|
|
|
Total operating cost
and expenses
|
765,931
|
|
644,416
|
Less: Share-based
compensation expenses
|
25,740
|
|
22,215
|
Non-GAAP operating
cost and expenses
|
740,191
|
|
622,201
|
|
|
|
|
Operating
income
|
76,972
|
|
56,585
|
Add: Share-based
compensation expenses
|
25,740
|
|
22,215
|
Non-GAAP operating
income
|
102,712
|
|
78,800
|
|
|
|
|
Operating margin
|
9.1%
|
|
8.1%
|
Non-GAAP operating
margin
|
12.2%
|
|
11.2%
|
|
|
|
|
Net income
attributable to New Oriental
|
43,248
|
|
65,082
|
Add: Share-based
compensation expenses
|
22,783
|
|
22,215
|
Add: Loss from fair
value change of long-term investments
|
29,044
|
|
-
|
Non-GAAP net income
attributable to New Oriental
|
95,075
|
|
87,297
|
|
|
|
|
Net income per ADS
attributable to New Oriental - Basic (note 2)
|
0.27
|
|
0.41
|
Net income per
ADS attributable to New Oriental - Diluted (note 2)
|
0.27
|
|
0.41
|
|
|
|
|
Non-GAAP net income
per ADS attributable to New Oriental
- Basic (note 2)
|
0.60
|
|
0.55
|
Non-GAAP net income
per ADS attributable to New Oriental
- Diluted (note 2)
|
0.60
|
|
0.55
|
|
|
|
|
Weighted average
shares used in calculating basic net income
per ADS (note 2)
|
157,849,975
|
|
158,319,910
|
Weighted average
shares used in calculating diluted net income
per ADS (note 2)
|
159,066,864
|
|
158,934,539
|
|
|
|
|
Non-GAAP income per
share - basic
|
0.60
|
|
0.55
|
Non-GAAP income per
share - diluted
|
0.60
|
|
0.55
|
Notes:
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the operating
cost
and expenses as follows:
|
|
|
|
|
|
For the Three
Months Ended May 31
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of revenues
|
134
|
|
-
|
Selling and
marketing
|
1,205
|
|
-
|
General and
administrative expenses
|
24,401
|
|
22,215
|
Total
|
25,740
|
|
22,215
|
|
|
|
|
|
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 Year Ended
May 31
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net revenues
|
3,096,491
|
|
2,447,430
|
|
|
|
|
Operating costs
and expenses (note 1):
|
|
|
|
Cost of
revenues
|
1,376,269
|
|
1,065,740
|
Selling and
marketing
|
384,287
|
|
324,249
|
General and
administrative
|
1,034,028
|
|
794,482
|
Total operating
costs and expenses
|
2,794,584
|
|
2,184,471
|
Gain on disposal of a
subsidiary
|
3,627
|
|
-
|
Operating
income
|
305,534
|
|
262,959
|
Loss from fair value
change of long-term investments
|
(104,636)
|
|
-
|
|
|
|
|
Other income,
net
|
114,951
|
|
94,065
|
Provision for income
taxes
|
(85,714)
|
|
(59,408)
|
Loss from equity
method investments
|
(2,289)
|
|
(379)
|
|
|
|
|
Net
income
|
227,846
|
|
297,237
|
|
|
|
|
Add: Net loss
(income) attributable to non-controlling
interests
|
10,219
|
|
(1,107)
|
|
|
|
|
Net income
attributable to New Oriental Education &
Technology Group Inc.
|
238,065
|
|
296,130
|
|
|
|
|
|
|
|
|
Net income per
share attributable to New Oriental-Basic
|
1.50
|
|
1.87
|
|
|
|
|
Net income per
share attributable to New Oriental-Diluted
|
1.50
|
|
1.87
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Basic
(note 2)
|
1.50
|
|
1.87
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Diluted
(note 2)
|
1.50
|
|
1.87
|
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 Year Ended
May 31
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
1,034,028
|
|
794,482
|
Less: Share-based
compensation expenses in
general and administrative expenses
|
69,997
|
|
57,443
|
Non-GAAP general and
administrative expenses
|
964,031
|
|
737,039
|
|
|
|
|
Total operating costs
and expenses
|
2,794,584
|
|
2,184,471
|
Less: Share-based
compensation expenses
|
71,336
|
|
57,443
|
Non-GAAP operating
costs and expenses
|
2,723,248
|
|
2,127,028
|
|
|
|
|
Operating income
|
305,534
|
|
262,959
|
Add: Share-based
compensation expenses
|
71,336
|
|
57,443
|
Non-GAAP operating
income
|
376,870
|
|
320,402
|
|
|
|
|
Operating
margin
|
9.9%
|
|
10.7%
|
Non-GAAP operating
margin
|
12.2%
|
|
13.1%
|
|
|
|
|
Net income
attributable to New Oriental
|
238,065
|
|
296,130
|
Add: Share-based
compensation expenses
|
68,379
|
|
57,443
|
Add: Loss from fair
value change of long-term
investments
|
104,636
|
|
-
|
Non-GAAP net income
to New Oriental
|
411,080
|
|
353,573
|
|
|
|
|
Net income per ADS
attributable to New
Oriental- Basic (note 2)
|
1.50
|
|
1.87
|
Net income per ADS
attributable to New
Oriental- Diluted (note 2)
|
1.50
|
|
1.87
|
|
|
|
|
Non-GAAP net income
per ADS attributable to
New Oriental - Basic (note 2)
|
2.60
|
|
2.24
|
Non-GAAP net income
per ADS attributable to
New Oriental - Diluted (note 2)
|
2.58
|
|
2.23
|
|
|
|
|
Weighted average
shares used in calculating
basic net income per ADS (note 2)
|
158,293,890
|
|
158,168,794
|
Weighted average
shares used in calculating
diluted net income per ADS (note 2)
|
159,039,345
|
|
158,556,500
|
|
|
|
|
Non-GAAP income per
share - basic
|
2.60
|
|
2.24
|
Non-GAAP income per
share - diluted
|
2.58
|
|
2.23
|
Notes:
|
|
|
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the
operating
costs and expenses as follows:
|
|
|
|
|
|
For the Year Ended
May 31
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of revenues
|
134
|
|
-
|
Selling and
marketing
|
1,205
|
|
-
|
General and
administrative expense
|
69,997
|
|
57,443
|
Total
|
71,336
|
|
57,443
|
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
View original
content:http://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-fourth-fiscal-quarter-and-the-fiscal-year-ended-may-31-2019-300889274.html
SOURCE New Oriental Education and Technology Group Inc.