BEIJING, April 20, 2021 /PRNewswire/ -- New Oriental
Education & Technology Group Inc. (the "Company" or "New
Oriental") (NYSE: EDU and SEHK: 9901), the largest provider of
private educational services in China, today announced its unaudited financial
results for the third fiscal quarter ended February 28, 2021, which is the third quarter of
New Oriental's fiscal year 2021.
Financial Highlights for the Third Fiscal Quarter Ended
February 28, 2021
- Total net revenues increased by 29.0% year-over-year to
US$1,190.5 million for the third
fiscal quarter of 2021.
- Operating income decreased by 13.5% year-over-year to
US$101.5 million for the third fiscal
quarter of 2021.
- Net income attributable to New Oriental increased by 9.9%
year-over-year to US$151.3 million
for the third fiscal quarter of 2021.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
3Q
FY2021
|
3Q
FY2020
|
% of
change
|
Net
revenues
|
1,190,498
|
923,221
|
29.0%
|
Operating
income
|
101,470
|
117,253
|
-13.5%
|
Non-GAAP operating
income (2)(3)
|
115,892
|
134,802
|
-14.0%
|
Net income
attributable to New Oriental
|
151,326
|
137,715
|
9.9%
|
Non-GAAP net income
attributable to New Oriental (2)(3)
|
163,236
|
148,502
|
9.9%
|
Net income per ADS
attributable to New Oriental - basic(5)
|
0.09
|
0.09
|
3.1%
|
Net income per ADS
attributable to New Oriental - diluted(5)
|
0.09
|
0.09
|
3.4%
|
Non-GAAP net income
per ADS attributable to New Oriental -
basic(3)(4)(5)
|
0.10
|
0.09
|
3.1%
|
Non-GAAP net income
per ADS attributable to New Oriental -
diluted(3)(4)(5)
|
0.10
|
0.09
|
3.4%
|
|
|
|
|
(in thousands US$,
except per ADS(1) data)
|
9M
FY2021
|
9M
FY2020
|
% of
change
|
Net
revenues
|
3,064,553
|
2,780,209
|
10.2%
|
Operating
income
|
219,628
|
388,748
|
-43.5%
|
Non-GAAP operating
income (2)(3)
|
268,363
|
428,532
|
-37.4%
|
Net income
attributable to New Oriental
|
379,880
|
400,142
|
-5.1%
|
Non-GAAP net income
attributable to New Oriental (2)(3)
|
416,902
|
435,650
|
-4.3%
|
Net income per ADS
attributable to New Oriental - basic(5)
|
0.23
|
0.25
|
-7.8%
|
Net income per ADS
attributable to New Oriental - diluted(5)
|
0.23
|
0.25
|
-7.5%
|
Non-GAAP net income
per ADS attributable to New Oriental -
basic(3)(4)(5)
|
0.26
|
0.28
|
-7.0%
|
Non-GAAP net income
per ADS attributable to New Oriental -
diluted(3)(4)(5)
|
0.25
|
0.27
|
-6.7%
|
|
|
|
|
|
(1) Each
ADS represents one common share. The Hong Kong-listed shares are
fully fungible with the ADSs listed on NYSE.
|
(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 attributable to New Oriental is
computed using Non-GAAP net income attributable to New Oriental and
the same number of shares and ADSs used in GAAP basic and diluted
EPS calculation.
|
(5) For
the quarter and 9 months ended February 29, 2020, the weighted
average number of shares and earnings per share have been
retrospectively adjusted to reflect the 10-for-1 share split that
became effective on March 10, 2021.
|
Operating Highlights for the Third Fiscal Quarter Ended
February 28, 2021
- Total student enrollments in academic subjects tutoring and
test preparation courses increased by 43% year-over-year to
approximately 2,296,800 for the third fiscal quarter of 2021.
- The total number of schools and learning centers was 1,625 as
of February 28, 2021, an increase of
209 compared to 1,416 as of February 29,
2020, and an increase of 107 compared to 1,518 as of
November 30, 2020. The total number
of schools was 118 as of February 28,
2021.
Michael Yu, New Oriental's
Executive Chairman, commented, "We are pleased to see continued
strong recovery of businesses for the third quarter despite the
challenges from a small wave of Covid-19 outbreak in around 20
cities in north China where we
responded swiftly and migrated offline classes to online using our
OMO system during the winter. Net revenue for the third quarter
exceeded our expectation, up 29.0% year over year. Our key growth
driver, K-12 all-subjects after-school tutoring business, achieved
year-over-year revenue growth of approximately 37%. U-Can middle
and high school all-subjects after-school tutoring business grew by
approximately 35%, while our POP Kids program recorded a growth of
approximately 40%. Overseas related businesses are still under
pressure due to the uncertainty of the pandemic situation and
travel restrictions around the globe. The overseas test preparation
business declined by approximately 12%, while the overseas
consulting and study tour business increased by 11%, respectively.
Looking ahead, we believe our business will trend toward a
normalized level in the coming quarters after seeing the underlying
demand for after-school tutoring picking up rapidly as the
pandemic situation was well controlled nationwide. As one of the
market leaders in China, we are
confident that our exceptional products and services, as well as
our constantly enhanced learning experience would enable us to gain
market share and deliver long-term value for our shareholders."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "We believe we are well positioned
to capture the market consolidation opportunity as the pandemic
fades. We remain committed to ramp up our expansion effort to
prepare for further taking market share from other players
post-COVID. During this quarter, we opened 1 new offline training
school in the city of Hengshui. The total square meters of
classroom area by the end of this quarter increased approximately
17% year-over-year, and 7% quarter-over-quarter. Student
enrollments for K-12 after-school tutoring business during the
quarter increase by 57% year-over-year. At the same time, we
continued leveraging our OMO (online merging offline) strategy,
which enables our service to virtually reach a broader pool of
students in existing cities and the surrounding satellite
cities. In the winter semester, we piloted the OMO online courses
in vast majority of existing cities and around 25
new surrounding satellite cities, attracting a promising
number of new customers, accompanied by improved student retention
with low customer acquisition cost. These OMO initiatives, filled
with localized and differentiating content, effectively boosted
enrollments and revenue with low customer acquisition cost, enabled
us to seize more market share and improved our overall
profitability. We are pleased to see that the OMO initiatives have
solicited an increased contribution to the Company's overall
revenue this quarter. Last but not least, our pure online education
platform, Koolearn.com have successfully reduced their customer
acquisition cost and enhanced overall in-class learning experience
for customers."
Stephen Zhihui Yang, New
Oriental's Executive President and Chief Financial Officer,
commented, "With the gradual recovery of our topline, our margins
have improved. Our Non-GAAP operating margin for the quarter was
9.7%, down 490 basis points year-over-year, which is a smaller
year-over-year decline comparing with the previous quarter.
Non-GAAP net margin for the quarter was 13.7%, down 240 basis
points year-over-year. We will continue to buckle down on
cost control and be cautious in making investment in our OMO
initiatives and pure online education platform in order to keep a
balance in growth and profitability. "
Financial Results for the Third Fiscal Quarter Ended
February 28, 2021
Net Revenues
For the third fiscal quarter of 2021, New Oriental reported net
revenues of US$1,190.5 million,
representing a 29.0% increase year-over-year. Net revenues from
educational programs and services for the third fiscal quarter were
US$1,103.8 million, representing
a 30.5% 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 third fiscal quarter of 2021 increased
by 43.0% year-over-year to approximately 2,296,800.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$1,089.0 million, representing a 35.1%
increase year-over-year. Non-GAAP operating costs and expenses for
the quarter, which exclude share-based compensation expenses, were
US$1,074.6 million, representing
a 36.3% increase year-over-year
- Cost of revenues increased by 35.3% year-over-year to
US$539.5 million, primarily due to
increases in teachers' compensation for more teaching hours and
higher rental costs for the increased number of schools and
learning centers in operation.
- Selling and marketing expenses increased by 32.0%
year-over-year to US$156.1 million,
primarily due to the addition of marketing staffs with the aim of
executing our OMO (online merging offline) strategy to capture the
new market opportunity post the COVID.
- General and administrative expenses for the quarter
increased by 36.1% year-over-year to US$393.4 million. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, were US$383.3 million,
representing a 40.3% increase year-over-year. The increase was
primarily due to increased headcount as the Company grew its
network of schools and learning centers, as well as increases in
R&D expenses and human resources expenses related to the
development of the Company's online and offline integrated
education ecosystem.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, decreased by 17.8%
year-over-year to US$ 14.4 million.
Operating Income and Operating Margin
Operating income was US$101.5 million, representing a 13.5%
decrease year-over-year. Non-GAAP operating income for the quarter
was US$115.9 million,
representing a 14.0% decrease year-over-year.
Operating margin for the quarter was 8.5%, compared to
12.7% in the same period of the prior fiscal year. Non-GAAP
operating margin, which excludes share-based compensation expenses,
for the quarter was 9.7%, compared to 14.6% in the same period of
the prior fiscal year.
Net Income and EPS
Net income attributable to New Oriental for the quarter was
US$151.3 million, representing
a 9.9% increase from the same period of the prior fiscal year.
Basic and diluted earnings per ADS attributable to New Oriental
were US$0.09 and US$0.09, respectively.
Non-GAAP Net Income and Non-GAAP EPS
Non-GAAP net income attributable to New Oriental for the quarter
was US$163.2 million,
representing a 9.9% increase from the same period of the prior
fiscal year. Non-GAAP basic and diluted earnings per ADS
attributable to New Oriental were US$0.10 and US$0.10, respectively.
Cash Flow
Net operating cash flow for the third fiscal quarter of 2021 was
approximately US$23.3 million.
Capital expenditures for the quarter were US$105.8 million, which were primarily
attributable to the opening of 142 facilities and renovations at
existing learning centers.
Balance Sheet
As of February 28, 2021, New
Oriental had cash and cash equivalents of US$1,569.8 million, as compared to
US$915.1 million as of May 31, 2020. In addition, the Company had
US$1,147.8 million in term
deposits, US$3,360.7 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
third quarter of fiscal year 2021 was US$1,865.7 million, an increase of 35.7% as
compared to US$1,375.0 million at the
end of the third quarter of fiscal year 2020.
Financial Results for the Nine Months Ended February 28, 2021
For the first nine months of fiscal year 2021, New Oriental
reported net revenues of US$3,064.6
million, representing a 10.2% increase year-over-year.
Total student enrollments in academic subjects tutoring and test
preparation courses in the first nine months of fiscal year 2021
increased by 17.9% to approximately 9,441,000.
Operating income for the first nine months of fiscal year 2021
was US$219.6 million, representing a
43.5% decrease year-over-year. Non-GAAP operating income for the
first nine months of fiscal year 2021 was US$268.4 million, representing a 37.4% decrease
year-over-year.
Operating margin for the first nine months of fiscal year 2021
was 7.2%, compared to 14.0% 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
2021, was 8.8%, compared to 15.4% for the same period of the prior
fiscal year.
Net income attributable to New Oriental for the first nine
months of fiscal year 2021 was US$379.9
million, representing a 5.1% decrease year-over-year. Basic
and diluted net income per ADS attributable to New Oriental for the
first nine months of fiscal year 2021 amounted to US$0.23 and US$0.23, respectively.
Non-GAAP net income attributable to New Oriental for the first
nine months of fiscal year 2021 was US$416.9
million, representing a 4.3% decrease year-over-year.
Non-GAAP basic and diluted net income per ADS attributable to New
Oriental for the first nine months of fiscal year 2021 amounted to
US$0.26 and US$0.25,
respectively.
Outlook for Fourth Quarter of Fiscal Year 2021
New Oriental expects total net revenues in the fourth quarter of
fiscal year 2021 (March 1, 2021 to
May 31, 2021) to be in the range of
US$1,101.9 million to
US$1,141.8 million, representing
year-over-year growth in the range of 38% to 43%.
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 20, 2021, U.S. Eastern Time (8 PM on April 20,
2021, 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:
https://apac.directeventreg.com/registration/event/8491538.
It will automatically direct you to the registration page of "New
Oriental Third Fiscal Quarter 2021 Earnings Conference Call" where
you may fill in your details for RSVP. If it requires you to enter
a participant conference ID, please enter "8491538".
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 April 27,
2021:
International:
|
+61 2 8199
0299
|
Passcode:
|
8491538
|
About New Oriental
New Oriental is the largest 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 consist of K-12 after-school tutoring, test
preparation, language training for adults, pre-school education,
primary and secondary school education, 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 one common share. The
Hong Kong-listed shares are fully
fungible with the ADSs listed on NYSE.
For more information about New Oriental, please visit
http://www.neworiental.org/english/.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the outlook for the third quarter of fiscal year 2021, 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 / (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 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. Rita
Fong
|
Ms. Sisi
Zhao
|
FTI
Consulting
|
New Oriental
Education & Technology Group Inc.
|
Tel: +852 3768
4548
|
Tel: +86-10-6260-5568
|
Email: rita.fong@fticonsulting.com
|
Email:
zhaosisi@xdf.cn
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
As of February
28
|
|
As of May
31
|
2021
|
|
2020
|
(Unaudited)
|
|
(Audited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
1,569,841
|
|
915,057
|
Term
deposits
|
1,147,787
|
|
284,793
|
Short-term
investments
|
3,360,737
|
|
2,318,280
|
Accounts receivable,
net
|
7,985
|
|
4,178
|
Inventory,
net
|
35,716
|
|
31,324
|
Prepaid expenses and
other current assets, net
|
247,721
|
|
199,404
|
Amounts due from
related parties, current
|
4,431
|
|
3,384
|
Total current
assets
|
6,374,218
|
|
3,756,420
|
|
|
|
|
Restricted cash,
non-current
|
16,351
|
|
4,367
|
Property and
equipment, net
|
817,010
|
|
672,455
|
Land use rights,
net
|
13,851
|
|
6,037
|
Amounts due from
related parties, non-current
|
3,888
|
|
22,709
|
Long-term
deposits
|
70,136
|
|
62,116
|
Intangible assets,
net
|
9,425
|
|
10,246
|
Goodwill,
net
|
99,545
|
|
80,366
|
Long-term investments,
net
|
554,913
|
|
431,101
|
Deferred tax assets,
non-current, net
|
70,447
|
|
63,324
|
Right-of-use
assets
|
1,722,258
|
|
1,425,466
|
Other non-current
assets
|
25,213
|
|
22,278
|
Total
assets
|
9,777,255
|
|
6,556,885
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable (including accounts payable of the consolidated variable
interest entities without
recourse to New Oriental of US$31,658 and US$29,147 as of May
31, 2020 and February 28, 2021,
respectively)
|
30,234
|
|
33,147
|
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$581,576 and
US$642,545 as of May 31, 2020 and February 28, 2021,
respectively)
|
690,562
|
|
634,619
|
Income
taxes payable (including income tax payable of the consolidated
variable interest entities
without recourse to New Oriental of US$87,331 and US$93,278 as of
May 31, 2020 and February 28,
2021, respectively)
|
108,525
|
|
101,385
|
Amounts
due to related parties (including amounts due to related parties of
the consolidated variable
interest entities without recourse to New Oriental of US$1,590 and
US$73 as of May 31, 2020 and
February 28, 2021, respectively)
|
73
|
|
1,590
|
Deferred
revenue (including deferred revenue of the consolidated variable
interest entities without
recourse to New Oriental of US$1,317,645 and US$1,862,713 as
of May 31, 2020 and February 28,
2021, respectively)
|
1,865,734
|
|
1,324,384
|
Operating
lease liability-current (including operating lease
liabilities-current of the consolidated
variable interest entities without recourse to New Oriental of
US$376,177 and US$397,735 as of May
31, 2020 and February 28, 2021, respectively)
|
481,056
|
|
384,239
|
|
|
|
|
Total current
liabilities
|
3,176,184
|
|
2,479,364
|
|
|
|
|
Deferred
tax liabilities, non-current (including deferred tax liabilities of
the consolidated variable
interest entities without recourse to New Oriental of US$12,392 and
US$17,971 as of May 31, 2020 and
February 28, 2021, respectively)
|
19,150
|
|
11,906
|
Long term
loan (including Long term loan of the consolidated variable
interest entities without
recourse to New Oriental of nil and nil as of May 31, 2020 and
February 28, 2021, respectively)
|
-
|
|
117,881
|
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,
2020 and February 28, 2021,
respectively)
|
297,476
|
|
-
|
Operating
lease liabilities (including operating lease liabilities of the
consolidated variable interest
entities without recourse to New Oriental of US$1,054,149 and
US$1,285,239 as of May 31, 2020 and
February 28, 2021, respectively)
|
1,239,753
|
|
1,077,923
|
|
|
|
|
Total long-term
liabilities
|
1,556,379
|
|
1,207,710
|
|
|
|
|
Total
liabilities
|
4,732,563
|
|
3,687,074
|
|
|
|
|
Equity
|
|
|
|
New Oriental
Education & Technology Group Inc. shareholders'
equity
|
4,915,339
|
|
2,733,295
|
Non-controlling interests
|
129,353
|
|
136,516
|
Total
equity
|
5,044,692
|
|
2,869,811
|
|
|
|
|
Total liabilities
and equity
|
9,777,255
|
|
6,556,885
|
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
|
|
For the Three
Months
Ended February 29
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
1,190,498
|
|
923,221
|
|
|
|
|
Operating cost and
expenses (note 1)
|
|
|
|
Cost of
revenues
|
539,499
|
|
398,628
|
Selling and
marketing
|
156,084
|
|
118,233
|
General and
administrative
|
393,445
|
|
289,107
|
|
|
|
|
Total operating
cost and expenses
|
1,089,028
|
|
805,968
|
Operating
income
|
101,470
|
|
117,253
|
(Loss)/gain from fair
value change of long-term investments
|
(2,443)
|
|
4,083
|
|
|
|
|
Other income,
net
|
68,077
|
|
30,387
|
Provision for income
taxes
|
(46,971)
|
|
(33,255)
|
Gain/(loss) from
equity method investments
|
6,509
|
|
(1,244)
|
Net
income
|
126,642
|
|
117,224
|
|
|
|
|
Add: Net loss
attributable to non-controlling interests
|
24,684
|
|
20,491
|
|
|
|
|
Net income
attributable to New Oriental Education &
Technology Group Inc.'s shareholders
|
151,326
|
|
137,715
|
|
|
|
|
Net income per
common share / ADS
|
|
|
|
-
Basic
|
0.09
|
|
0.09
|
-
Diluted
|
0.09
|
|
0.09
|
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
|
|
For the Three
Months Ended
February 29
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
393,445
|
|
289,107
|
Less: Share-based
compensation expenses in general and administrative
expenses
|
10,108
|
|
15,852
|
Non-GAAP general and
administrative expenses
|
383,337
|
|
273,255
|
|
|
|
|
Total operating cost
and expenses
|
1,089,028
|
|
805,968
|
Less: Share-based
compensation expenses
|
14,422
|
|
17,549
|
|
|
|
|
Non-GAAP operating
cost and expenses
|
1,074,606
|
|
788,419
|
|
|
|
|
Operating
income
|
101,470
|
|
117,253
|
Add: Share-based
compensation expenses
|
14,422
|
|
17,549
|
|
|
|
|
Non-GAAP operating
income
|
115,892
|
|
134,802
|
|
|
|
|
Operating
margin
|
8.5%
|
|
12.7%
|
Non-GAAP operating
margin
|
9.7%
|
|
14.6%
|
|
|
|
|
Net income
attributable to New Oriental
|
151,326
|
|
137,715
|
Add: Share-based
compensation expenses
|
9,467
|
|
14,870
|
Less: (Loss)/gain
from fair value change of long-term investments
|
(2,443)
|
|
4,083
|
Non-GAAP net income
attributable to New Oriental
|
163,236
|
|
148,502
|
|
|
|
|
Net income per ADS
attributable to New Oriental- Basic (note 2)
|
0.09
|
|
0.09
|
Net income per
ADS attributable to New Oriental- Diluted (note 2)
|
0.09
|
|
0.09
|
|
|
|
|
Non-GAAP net income
per ADS attributable to New Oriental - Basic
(note 2)
|
0.10
|
|
0.09
|
Non-GAAP net income
per ADS attributable to New Oriental - Diluted
(note 2)
|
0.10
|
|
0.09
|
|
|
|
|
Weighted average
shares used in calculating basic net income per ADS
(note 2)
|
1,689,712,150
|
|
1,585,034,866
|
Weighted average
shares used in calculating diluted net income per ADS
(note 2)
|
1,695,315,497
|
|
1,595,291,869
|
|
|
|
|
Non-GAAP income per
share - basic
|
0.10
|
|
0.09
|
Non-GAAP income per
share - diluted
|
0.10
|
|
0.09
|
|
|
|
|
|
|
|
|
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
|
|
For the Three
Months Ended F
ebruary 29
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
2,393
|
|
593
|
Selling and
marketing
|
1,921
|
|
1,104
|
General and
administrative
|
10,108
|
|
15,852
|
Total
|
14,422
|
|
17,549
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
For the Three
Months
Ended February 28
|
|
For the Three
Months
Ended February 29
|
|
|
2021
|
|
2020
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
23,314
|
|
39,657
|
|
Net cash used in
investing activities
|
(1,122,254)
|
|
(33,101)
|
|
Net cash provided
by/(used in) financing activities
|
13,364
|
|
(2,385)
|
|
Effect of exchange
rate changes
|
23,644
|
|
5,068
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
(1,061,932)
|
|
9,239
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
2,648,124
|
|
1,051,365
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
1,586,192
|
|
1,060,604
|
|
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
|
|
For the Nine
Months
Ended February 29
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
3,064,553
|
|
2,780,209
|
|
|
|
|
Operating costs
and expenses (note 1):
|
|
|
|
Cost of
revenues
|
1,458,028
|
|
1,197,819
|
Selling and
marketing
|
406,555
|
|
327,273
|
General and
administrative
|
980,342
|
|
866,369
|
|
|
|
|
Total operating
costs and expenses
|
2,844,925
|
|
2,391,461
|
Operating
income
|
219,628
|
|
388,748
|
Loss from fair value
change of long-term investments
|
(4,597)
|
|
(486)
|
|
|
|
|
Other income,
net
|
195,578
|
|
77,556
|
Provision for income
taxes
|
(112,910)
|
|
(98,168)
|
Gain from equity
method investments
|
7,556
|
|
2,385
|
Net
income
|
305,255
|
|
370,035
|
|
|
|
|
Add: Net loss
attributable to non-controlling interests
|
74,625
|
|
30,107
|
|
|
|
|
Net income
attributable to New Oriental Education & Technology
Group Inc.
|
379,880
|
|
400,142
|
|
|
|
|
|
|
|
|
Net income per
share attributable to New Oriental-Basic
|
0.23
|
|
0.25
|
|
|
|
|
Net income per
share attributable to New Oriental-Diluted
|
0.23
|
|
0.25
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Basic (note 2)
|
0.23
|
|
0.25
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Diluted (note 2)
|
0.23
|
|
0.25
|
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
|
|
For the Nine
Months Ended
February 29
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
980,342
|
|
866,369
|
Less: Share-based
compensation expenses in general and administrative
expenses
|
34,655
|
|
37,459
|
Non-GAAP general and
administrative expenses
|
945,687
|
|
828,910
|
|
|
|
|
Total operating costs
and expenses
|
2,844,925
|
|
2,391,461
|
Less: Share-based
compensation expenses
|
48,735
|
|
39,784
|
Non-GAAP operating
costs and expenses
|
2,796,190
|
|
2,351,677
|
|
|
|
|
Operating
income
|
219,628
|
|
388,748
|
Add: Share-based
compensation expenses
|
48,735
|
|
39,784
|
Non-GAAP operating
income
|
268,363
|
|
428,532
|
|
|
|
|
Operating
margin
|
7.2%
|
|
14.0%
|
Non-GAAP operating
margin
|
8.8%
|
|
15.4%
|
|
|
|
|
Net income
attributable to New Oriental
|
379,880
|
|
400,142
|
Add: Share-based
compensation expenses
|
32,425
|
|
35,022
|
Less: Loss from fair
value change of long-term investments
|
(4,597)
|
|
(486)
|
Non-GAAP net income
to New Oriental
|
416,902
|
|
435,650
|
|
|
|
|
Net income per ADS
attributable to New Oriental- Basic (note 2)
|
0.23
|
|
0.25
|
Net income per ADS
attributable to New Oriental- Diluted (note 2)
|
0.23
|
|
0.25
|
|
|
|
|
Non-GAAP net income
per ADS attributable to New Oriental - Basic (note 2)
|
0.26
|
|
0.28
|
Non-GAAP net income
per ADS attributable to New Oriental - Diluted (note 2)
|
0.25
|
|
0.27
|
|
|
|
|
Weighted average
shares used in calculating basic net income per ADS (note
2)
|
1,630,427,098
|
|
1,583,924,719
|
Weighted average
shares used in calculating diluted net income per ADS (note
2)
|
1,637,074,362
|
|
1,595,232,352
|
|
|
|
|
Non-GAAP income per
share - basic
|
0.26
|
|
0.28
|
Non-GAAP income per
share - diluted
|
0.25
|
|
0.27
|
|
|
|
|
|
|
|
|
|
|
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
|
|
For the Nine
Months Ended
February 29
|
|
|
2021
|
|
2020
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
Cost of
revenues
|
6,229
|
|
650
|
|
Selling and
marketing
|
7,851
|
|
1,675
|
|
General and
administrative
|
34,655
|
|
37,459
|
|
Total
|
48,735
|
|
39,784
|
|
|
|
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
|
|
|
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
For the Nine
Months Ended
February 28
|
|
For the Nine
Months Ended
February 29
|
|
|
2021
|
|
2020
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
825,590
|
|
695,983
|
|
Net cash used in
investing activities
|
(1,919,054)
|
|
(1,033,307)
|
|
Net cash provided
by/(used in) financing activities
|
1,654,835
|
|
(7,004)
|
|
Effect of exchange
rate changes
|
105,397
|
|
(13,295)
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
666,768
|
|
(357,623)
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
919,424
|
|
1,418,227
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
1,586,192
|
|
1,060,604
|
|
View original
content:http://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-third-fiscal-quarter-ended-february-28-2021-301272286.html
SOURCE New Oriental Education and Technology Group Inc.