- Quarterly
Results:
Net Revenues up
by 44.1%
Year-Over-Year
Income
from Operations up by 71.5%
Year-Over-Year
Non-GAAP
Income from Operations up by 72.4%
Year-Over-Year
Total
Student Enrollments up by 71.2% Year-Over-Year
- Fiscal
Year Results:
Net
Revenues up by
49.4%
Income from
Operations up by
63.7%
Non-GAAP
Income from Operations up by 63.8%
Average Student
Enrollments up by 87.8% Year-Over-Year
BEIJING, April 25, 2019 /PRNewswire/ -- TAL Education
Group (NYSE: TAL) ("TAL" or the "Company"), a leading K-12
after-school tutoring services provider in China, today announced its unaudited financial
results for the fourth quarter and the fiscal year ended
February 28, 2019.
Highlights for the Fourth Quarter of Fiscal
Year 2019
- Net revenues increased by 44.1% year-over-year to US$726.6 million from US$504.1 million in the same period of the prior
year.
- Income from operations increased by 71.5% to US$114.7 million from US$66.9 million in the same period of the prior
year.
- Non-GAAP income from operations, which excluded share-based
compensation expenses, increased by 72.4% to US$137.0 million from US$79.5 million in the same period of the prior
year.
- Net income attributable to TAL increased by 43.2% to
US$99.6 million from US$69.5 million in the same period of the prior
year.
- Non-GAAP net income attributable to TAL, which excluded
share-based compensation expenses, increased by 48.4% to
US$121.9 million from US$82.1 million in the same period of the prior
year.
- Basic and diluted net income per American Depositary Share
("ADS") were both US$0.17. Non-GAAP
basic and diluted net income per ADS, which excluded share-based
compensation expenses, were US$0.21
and US$0.20, respectively. Three ADSs
represent one Class A common share.
- Cash, cash equivalents and short-term investments totaled
US$1,515.6 million as of February 28, 2019, compared to US$1,498.9 million as of February 28, 2018.
- Total student enrollments increased by 71.2% year-over-year to
approximately 4,478,730 from approximately 2,615,760 in the same
period of the prior year.
Highlights for the Fiscal Year Ended February 28, 2019
- Net revenues increased by 49.4% year-over-year to US$2,563.0 million from US$1,715.0 million in fiscal year 2018.
- Income from operations increased by 63.7% to US$341.6 million from US$208.6 million in fiscal year 2018.
- Non-GAAP income from operations, which excluded share-based
compensation expenses, increased by 63.8% to US$418.9 million from US$255.8 million in fiscal year 2018.
- Net income attributable to TAL increased by 85.1%
year-over-year to US$367.2 million
from US$198.4 million in fiscal year
2018.
- Non-GAAP net income attributable to TAL, which excluded
share-based compensation expenses, increased by 81.0%
year-over-year to US$444.5 million
from US$245.6 million in fiscal year
2018.
- Basic and diluted net income per ADS were US$0.64 and US$0.61, respectively. Non-GAAP basic and diluted
net income per ADS, excluding share-based compensation expenses,
were US$0.78 and US$0.74, respectively.
- Average student enrollments per quarter in fiscal year 2019
increased by 87.8% year-over-year to approximately 3,498,040 from
approximately 1,862,410 in fiscal year 2018.
- Total physical network increased from 594 learning centers in
42 cities as of February 28, 2018 to
676 learning centers in 56 cities as of February 28, 2019.
Financial and
Operating Data——Fourth Quarter and Fiscal Year 2019
|
(In US$ thousands,
except per ADS data, student enrollments and
percentages)
|
|
|
Three Months
Ended
|
|
February
28,
|
|
2018
|
2019
|
Pct. Change
|
Net
revenues
|
504,098
|
726,561
|
44.1%
|
Operating
income
|
66,876
|
114,706
|
71.5%
|
Non-GAAP operating
income
|
79,475
|
136,981
|
72.4%
|
Net income
attributable to TAL
|
69,539
|
99,612
|
43.2%
|
Non-GAAP net income
attributable
to TAL
|
82,138
|
121,887
|
48.4%
|
Net income per ADS
attributable to
TAL – basic
|
0.13
|
0.17
|
38.9%
|
Net income per ADS
attributable to
TAL – diluted
|
0.12
|
0.17
|
40.6%
|
Non-GAAP net income
per ADS
attributable to TAL – basic
|
0.15
|
0.21
|
43.8%
|
Non-GAAP net income
per ADS
attributable to TAL – diluted
|
0.14
|
0.20
|
45.7%
|
Total student
enrollments
|
2,615,760
|
4,478,730
|
71.2%
|
|
Fiscal Year
Ended
|
|
February
28,
|
|
2018
|
2019
|
Pct. Change
|
Net
revenues
|
1,715,016
|
2,562,984
|
49.4%
|
Operating
income
|
208,604
|
341,582
|
63.7%
|
Non-GAAP operating
income
|
255,754
|
418,859
|
63.8%
|
Net income
attributable to TAL
|
198,440
|
367,236
|
85.1%
|
Non-GAAP net income
attributable to
TAL
|
245,590
|
444,513
|
81.0%
|
Net income per ADS
attributable to
TAL – basic
|
0.38
|
0.64
|
70.5%
|
Net income per ADS
attributable to
TAL – diluted
|
0.34
|
0.61
|
77.5%
|
Non-GAAP net income
per ADS
attributable to TAL – basic
|
0.47
|
0.78
|
66.7%
|
Non-GAAP net income
per ADS
attributable to TAL – diluted
|
0.43
|
0.74
|
74.0%
|
Average student
enrollments per
quarter
|
1,862,410
|
3,498,040
|
87.8%
|
"We are pleased to report solid financial and operational
progress in the fiscal fourth quarter as well as in fiscal year
2019. Our overall education program is proceeding as planned with
healthily paced growth in online business and measured capacity
expansion in our learning center and geographic network," said Mr. Rong Luo, TAL's Chief Financial
Officer.
"Looking ahead, we will continue to invest in new education
technology and develop more diversified course offerings to combine
growth with improved efficiencies and better meet the demand from
students in different tiers of cities. Ongoing innovations of our
online and offline education programs enable us to train more
students in smarter ways, in a shorter time and therefore at
reduced cost, and with quality results," Mr. Luo explained.
Financial Results for the Fourth Quarter
of Fiscal Year 2019
Net Revenues
In the fourth quarter of fiscal year 2019, TAL reported net
revenues of US$726.6 million,
representing a 44.1% increase from US$504.1 million in the fourth quarter
of fiscal year 2018. The increase was mainly driven by an increase
in total student enrollments, which increased by 71.2% to
approximately 4,478,730 from approximately 2,615,760 in
the same period of the prior year. The increase in total student
enrollments was driven primarily by promotions in small
class and online courses.
Operating Costs and Expenses
In the fourth quarter of fiscal year 2019, operating costs
and expenses were US$611.9 million, a
39.9% increase from US$437.4 million in the fourth quarter
of fiscal year 2018. Non-GAAP operating costs and expenses, which
excluded share-based compensation expenses, were US$589.6 million, a 38.8% increase from
US$424.8 million in the
fourth quarter of fiscal year 2018.
Cost of revenues increased by 24.1% to US$306.2 million, from US$246.7 million in the fourth quarter
of fiscal year 2018. The increase in cost of revenues was mainly
due to an increase in teacher compensation and rental costs.
Non-GAAP cost of revenues, which excluded share-based compensation
expenses, increased by 24.1% to US$306.0
million from US$246.6 million in the fourth quarter
of fiscal year 2018.
Selling and marketing expenses increased by 73.8% to
US$136.2 million from US$78.3 million in the fourth quarter of
fiscal year 2018. Non-GAAP selling and marketing expenses, which
excluded share-based compensation expenses, increased by 72.5% to
US$132.9 million from US$77.0 million in the fourth quarter
of fiscal year 2018. The increase in selling and marketing expenses
in the fourth quarter of fiscal year 2019 was primarily a
result of more marketing promotion activities to expand our
customer base and brand enhancement, as well as a rise in the
compensation to sales and marketing staff to support a greater
number of programs and service offerings compared to the same
period in the prior year.
General and administrative expenses increased by 50.9% to
US$169.6 million from US$112.3 million in the fourth quarter of
fiscal year 2018. The increase in general and administrative
expenses was mainly due to an increase of the number of our general
and administrative personnel compared to the same period
in the prior year and a rise in compensation to our general
and administrative personnel. Non-GAAP general and
administrative expenses, which excluded share-based compensation
expenses, increased by 49.0% to US$150.8
million from US$101.2 million
in the fourth quarter of fiscal year 2018.
Total share-based compensation expenses allocated to the related
operating costs and expenses increased by 76.8% to US$22.3 million in the fourth quarter of fiscal
year 2019 from US$12.6 million in the
same period of fiscal year 2018.
Gross
Profit
Gross profit increased by 63.3% to US$420.4 million from US$257.4 million in the fourth quarter
of fiscal year 2018.
Income from Operations
Income from operations increased by 71.5% to US$114.7 million from US$66.9 million in the fourth quarter
of fiscal year 2018. Non-GAAP income from operations, which
excluded share-based compensation expenses, increased by 72.4% to
US$137.0 million from US$79.5 million in the fourth quarter of
fiscal year 2018.
Other income
Other income was US$24.7
million in the fourth quarter of fiscal year 2019,
mainly due to gains from the fair value change of an equity
security with readily determinable fair value and remeasuring the
fair value of the previously held equity interests during a
business combination achieved in stages.
Impairment loss on long-term investments
Impairment loss on long-term investments was US$7.2 million in the fourth quarter of fiscal
year 2019, compared to nil in the fourth quarter of fiscal year
2018. Impairment loss on long-term investments was mainly due to
other-than-temporary declines in the value of long-term investments
in several investees.
Income Tax Expense
Income tax expense was US$33.2
million in the fourth quarter of fiscal year 2019, compared
to US$8.7 million in the fourth
quarter of fiscal year 2018.
Net Income Attributable to TAL Education Group
Net income attributable to TAL increased by 43.2% to
US$99.6 million from US$69.5 million in the fourth quarter
of fiscal year 2018. Non-GAAP net income attributable to TAL, which
excluded share-based compensation expenses, increased by 48.4% to
US$121.9 million from US$82.1 million in the fourth quarter of
fiscal year 2018.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were both US$0.17 in the fourth quarter of fiscal
year 2019. Non-GAAP basic and Non-GAAP diluted net income per ADS,
which excluded share-based compensation expenses, were US$0.21 and US$0.20, respectively.
Capital Expenditures
Capital expenditures for the fourth quarter of fiscal year
2019 were US$209.1 million, an
increase of US$178.3 million from
US$30.8 million in the
fourth quarter of fiscal year 2018. The increase was mainly
due to the purchase of land use rights, leasehold improvements and
the purchase of servers, computers, software systems and other
hardware for the Company's teaching facilities and mobile network
research and development activities.
Cash, Cash Equivalents and Short-Term
Investments
As of February 28, 2019, the
Company had US$1,247.1 million of
cash and cash equivalents and US$268.4
million of short-term investments, compared to US$711.5 million of cash and cash
equivalents and US$787.4 million of short-term
investments as of February 28,
2018.
Deferred Revenue
As of February 28, 2019, the
Company's deferred revenue balance was US$436.1 million, compared to US$842.3 million as of February 28, 2018, representing a year-over-year
decrease of 48.2% mainly due to the change of tuition fees
collection schedule to meet certain regulatory requirement and the
adoption of Revenue from Contracts with Customers ("Topic 606")
beginning on March 1, 2018.
Financial Results for the Fiscal Year Ended February 28, 2019
Net Revenues
For fiscal year 2019, TAL reported net revenues of US$2,563.0 million, representing a 49.4% increase
from US$1,715.0 million in
fiscal year 2018. The increase was mainly driven by an increase in
total student enrollments. Average student enrollments per quarter
increased by 87.8% to approximately 3,498,040 from approximately
1,862,410 in the prior year. The increase in total student
enrollments was driven primarily by the growth of enrollments in
the small class offerings and online courses.
Operating Costs and Expenses
In fiscal year 2019, operating costs and expenses were
US$2,228.1 million, a 47.5% increase
from US$1,511.1 million in
fiscal year 2018. Non-GAAP operating costs and expenses, which
excluded share-based compensation expenses, were US$2,150.8 million, a 46.9% increase from
US$1,463.9 million in fiscal
year 2018.
Cost of revenues increased by 32.0% to US$1,164.5 million from US$882.3 million in fiscal year 2018. The
increase in cost of revenues was mainly due to an increase in
teacher compensation and rental costs. Non-GAAP cost of
revenues, which excluded share-based compensation expenses,
increased by 32.0% to US$1,163.7
million from US$882.0 million in fiscal year 2018.
Selling and marketing expenses increased by 99.9% to
US$484.0 million from US$242.1 million in fiscal year 2018.
Non-GAAP selling and marketing expenses, which excluded share-based
compensation expenses, increased by 99.8% to US$473.5 million from US$237.1 million in fiscal year 2018. The
increase in selling and marketing expenses in fiscal year 2019 was
primarily a result of more marketing promotion activities to
expand our customer base and brand enhancement, as well as a rise
in the compensation to sales and marketing staff to support a
greater number of programs and service offerings compared to the
same period in the prior year.
General and administrative expenses increased by 50.1% to
US$579.7 million from US$386.3 million in fiscal year 2018. The
increase in general and administrative expenses was mainly due to
an increase of the number of our general and administrative
personnel compared to the same period in the prior year and a
rise in compensation to our general and administrative personnel.
Non-GAAP general and administrative expenses, which excluded
share-based compensation expenses, increased by 49.1% to
US$513.6 million from
US$344.5 million in fiscal year
2018.
Total share-based compensation expenses allocated to the related
operating costs and expenses increased by 63.9% to US$77.3 million in fiscal year 2019 from
US$47.1 million in fiscal year
2018.
Gross Profit
Gross profit increased by 68.0% to US$1,398.5 million from US$832.7 million in fiscal year 2018.
Income from Operations
Income from operations increased by 63.7% to US$341.6 million from US$208.6 million in fiscal year 2018. Non-GAAP
income from operations, which excluded share-based compensation
expenses, increased by 63.8% to US$418.9
million from US$255.8 million
in fiscal year 2018.
Other income
Other income was US$131.7 million for fiscal year
2019, compared to other income of US$17.4 million for fiscal year 2018. Other
income of fiscal year 2019 was mainly from the fair value changes
of a long-term investment. The fair value changes of the long-term
investment were transferred from accumulated other
comprehensive income to other income as the investment was
reclassified from available-for-sale investment to equity
security with readily determinable fair value upon listing on the
Hong Kong Exchange in November
2018.
Impairment loss on long-term investments
Impairment loss on long-term investments was US$58.1 million in fiscal year 2019, compared to
US$2.2 million in fiscal year 2018.
Impairment loss on long-term investments was mainly due to the
other-than-temporary declines in the value of long-term investments
in several investees.
Income Tax Expense
Income tax expense was US$76.5
million in fiscal year 2019, compared to US$44.7 million in fiscal year 2018.
Net Income Attributable to TAL Education Group
Net income attributable to TAL increased by 85.1% to
US$367.2 million from US$198.4 million in fiscal year 2018.
Non-GAAP net income attributable to TAL, which excluded share-based
compensation expenses, increased by 81.0% to US$444.5 million from US$245.6 million in fiscal year 2018.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were US$0.64 and US$0.61, respectively, in fiscal year 2019.
Non-GAAP basic and Non-GAAP diluted net income per ADS, which
excluded share-based compensation expenses, were US$0.78 and US$0.74, respectively.
Capital Expenditures
Capital expenditures for fiscal year 2019 were US$353.3million, an increase of US$227.0 million from US$126.3 million in fiscal year 2018. The
increase was mainly due to the purchase of land use
rights, leasehold improvements and the purchase of servers,
computers, software systems and other hardware for the Company's
teaching facilities and mobile network research and development
activities.
Business Outlook
Based on the Company's current estimates, total net revenues for
the first quarter of fiscal year 2020 are expected to be between
US$ 699.3
million and US$
710.3 million, representing an increase
of 27% to 29% on a year-over-year
basis. If not taking into consideration the impact of potential
change in exchange rate between Renminbi and the U.S. Dollar, the
projected revenue growth rate is expected to be in the range
of 33% to 35% for the first quarter
of fiscal year 2020.
These estimates reflect the Company's current expectation, which
is subject to change.
Conference Call
The Company will host a conference call and live webcast to
discuss its financial results for the fourth fiscal
quarter and the fiscal year ended February 28, 2019 at 8:00
a.m. Eastern Time on April 25,
2019 (8:00 p.m. Beijing time on April
25, 2019).
The dial-in details for the live conference call are as
follows:
- U.S. toll
free:
|
+1-866-519-4004
|
- Hong Kong toll
free:
|
800-906-601
|
- International toll:
|
+65-6713-5090
|
Conference ID:
|
7357907
|
A live and archived webcast of the conference call will be
available on the Investor Relations section of TAL's website at
en.100tal.com.
A telephone replay of the conference call will be available
through 9:59 a.m. U.S. Eastern time,
May 3, 2019 (9:59 p.m. Beijing time, May 3,
2019).
The dial-in details for the replay are as follows:
- U.S. toll
free:
|
+1-855-452-5696
|
- Hong Kong toll
free:
|
800-963-117
|
- International
toll:
|
+61-2-8199-0299
|
Conference ID:
|
7357907
|
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 fiscal year 2020,
quotations from management in this announcement, as well as TAL
Education Group's strategic and operational plans, contain
forward-looking statements. The Company may also make written or
oral forward-looking statements in its reports filed with, 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 the Company'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: the Company's ability to continue to
attract students to enroll in its courses; the Company's ability to
continue to recruit, train and retain qualified teachers; the
Company's ability to improve the content of its existing course
offerings and to develop new courses; the Company's ability to
maintain and enhance its brand; the Company's ability to maintain
and continue to improve its teaching results; and the Company's
ability to compete effectively against its competitors. Further
information regarding these and other risks is included in the
Company's reports filed with, or furnished to the U.S. Securities
and Exchange Commission. All information provided in this press
release and in the attachments is as of the date of this press
release, and TAL Education Group undertakes no duty to update such
information or any forward-looking statement, except as required
under applicable law.
About TAL Education Group
TAL Education Group is a leading K-12 after-school tutoring
services provider in China. The
acronym "TAL" stands for "Tomorrow Advancing Life", which reflects
our vision to promote top learning opportunities for Chinese
students through both high-quality teaching and content, as well as
leading edge application of technology in the education experience.
TAL Education Group offers comprehensive tutoring services to
students from pre-school to the twelfth grade through three
flexible class formats: small classes, personalized premium
services, and online courses. Our tutoring services cover the core
academic subjects in China's
school curriculum as well as competence oriented programs. The
Company's learning center network currently covers over 50 key
cities in China.
We also operate www.jzb.com, a leading online education platform
in China. Our ADSs trade on the
New York Stock Exchange under the symbol "TAL".
About Non-GAAP Financial Measures
In evaluating its business, TAL considers and uses the following
measures defined as non-GAAP financial measures by the U.S.
Securities and Exchange Commission as supplemental metrics to
review and assess its operating performance: non-GAAP operating
costs and expenses, non-GAAP cost of revenues, non-GAAP selling and
marketing expenses, non-GAAP general and administrative expenses,
non-GAAP income from operations, non-GAAP net income attributable
to TAL, non-GAAP basic and non-GAAP diluted net income per ADS. To
present each of these non-GAAP measures, the Company excludes
share-based compensation expenses. The presentation of these
non-GAAP financial measures is not intended to be considered in
isolation from 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
table captioned "Reconciliations of non-GAAP measures to the most
comparable GAAP measures" set forth at the end of this release.
TAL believes that these non-GAAP financial measures provide
meaningful supplemental information regarding its performance and
liquidity by excluding share-based expenses that may not be
indicative of its operating performance from a cash perspective.
TAL believes that both management and investors benefit from 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 TAL's
historical performance and liquidity. TAL computes its non-GAAP
financial measures using the same consistent method from quarter to
quarter and from period to period. TAL 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 non-GAAP measures is that these non-GAAP
measures exclude share-based compensation charges that have been
and will continue to be for the foreseeable future a significant
recurring expense in the Company's 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.
For further information, please contact:
Echo Yan
Investor Relations
TAL Education Group
Tel: +86 10 5292 6658
Email: ir@100tal.com
Caroline Straathof
IR Inside
Tel: +31 6 5462 4301
Email: info@irinside.com
TAL EDUCATION
GROUP
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In
thousands of U.S. dollars)
|
|
|
|
|
|
As
of
February 28,
2018
|
|
As
of
February
28,
2019
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$ 711,519
|
|
$
1,247,140
|
Restricted
cash-current
|
6,267
|
|
9,227
|
Short-term
investments
|
787,391
|
|
268,424
|
Inventory
|
5,272
|
|
7,750
|
Amounts due
from related parties-current
|
3,229
|
|
3,341
|
Income tax
receivables
|
15,093
|
|
7,204
|
Prepaid
expenses and other current assets
|
133,235
|
|
202,630
|
Total current
assets
|
1,662,006
|
|
1,745,716
|
Restricted
cash-non-current
|
9,911
|
|
7,334
|
Amounts due
from related parties-non-current
|
-
|
|
1,747
|
Property and
equipment, net
|
247,266
|
|
287,877
|
Deferred tax
assets-non-current
|
17,361
|
|
29,179
|
Rental
deposits
|
47,333
|
|
56,135
|
Intangible
assets, net
|
43,505
|
|
74,776
|
Goodwill
|
291,382
|
|
414,228
|
Long-term
investments
|
597,606
|
|
850,695
|
Long-term
prepayments and other non-current assets
|
138,190
|
|
267,404
|
Total
assets
|
$
3,054,560
|
|
$
3,735,091
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable
(including accounts payable of the consolidated VIEs without recourse to TAL
Education
Group of 51,809 and 98,436 as of February 28, 2018, and
February 28, 2019, respectively)
|
$ 57,605
|
|
$ 106,493
|
Deferred
revenue-current (including deferred revenue-
current of the consolidated VIEs without recourse to
TAL Education Group of 772,642 and 401,027 as of
February 28, 2018, and February 28, 2019,
respectively)
|
824,276
|
|
433,610
|
Amounts due to
related parties-current (including amounts
due to related parties-current of the consolidated VIEs
without recourse to TAL Education Group of 2,875 and
18,504 as of February 28, 2018, and February 28, 2019,
respectively)
|
8,746
|
|
24,375
|
Accrued expenses and
other current liabilities (including
accrued expenses and other current liabilities of
the
consolidated VIEs without recourse to TAL Education
Group of 158,849 and 291,728 as of February 28, 2018,
and February 28, 2019, respectively)
|
229,122
|
|
365,195
|
Income tax payable
(including income tax payable of the
consolidated VIEs without recourse to TAL Education
Group of 12,106 and 36,670 as of February 28, 2018, and
February 28, 2019, respectively)
|
13,638
|
|
38,743
|
Short-term debt and
current portion of long-term debt (including short-term debt and current portion of
long-
term debt of the consolidated VIEs without recourse to
TAL Education Group of nil and nil as of February 28,
2018, and February 28, 2019, respectively)
|
-
|
|
210,027
|
Bond payable, current
portion (including bond payable,
current portion of the consolidated VIEs without recourse
to TAL Education Group of nil and nil as of February 28,
2018, and February 28, 2019, respectively)
|
-
|
|
5,275
|
Total current
liabilities
|
1,133,387
|
|
1,183,718
|
Deferred
revenue-non-current (including deferred revenue-
non-current of the consolidated VIEs without recourse to
TAL Education Group of 17,980 and 2,497 as of February
28, 2018, and February 28, 2019, respectively)
|
17,980
|
|
2,497
|
Amounts due to
related parties-non-current (including
amounts due to related parties-non-current of the
consolidated VIEs without recourse to TAL Education
Group of nil and 106 as of February 28, 2018, and
February 28, 2019, respectively)
|
271
|
|
196
|
Deferred tax
liabilities-non-current (including deferred tax
liabilities-non-current of the consolidated VIEs without
recourse to TAL Education Group of 19,867 and 16,951 as
of February 28, 2018, and February 28, 2019,
respectively)
|
20,039
|
|
17,738
|
Bond payable
(including bond payable of the consolidated
VIEs without recourse to TAL Education Group of nil and
nil as of February 28, 2018, and February 28,2019,
respectively)
|
11,075
|
|
-
|
Long-term payable
(including long-term payable of the
consolidated VIEs without recourse to TAL Education
Group of 4,660 and 465 as of February 28, 2018, and
February 28, 2019 respectively)
|
6,344
|
|
465
|
Long-term debt
(including long-term debt of the
consolidated VIEs without recourse to TAL Education Group of nil
and
nil as of February 28, 2018, and February 28, 2019,
respectively)
|
225,000
|
|
-
|
Total
liabilities
|
1,414,096
|
|
1,204,614
|
TAL Education
Group Shareholders' Equity
|
|
|
|
Class A common
shares
|
118
|
|
127
|
Class B common
shares
|
71
|
|
71
|
Class A common shares
issuable
|
-
|
|
1,977
|
Additional paid-in
capital
|
884,717
|
|
1,485,521
|
Statutory
reserve
|
38,315
|
|
58,690
|
Retained
earnings
|
565,202
|
|
920,314
|
Accumulated other
comprehensive income
|
132,325
|
|
17,047
|
Total TAL
Education Group's equity
|
1,620,748
|
|
2,483,747
|
Noncontrolling
interest
|
19,716
|
|
46,730
|
Total
equity
|
1,640,464
|
|
2,530,477
|
Total liabilities
and equity
|
$
3,054,560
|
|
$
3,735,091
|
TAL EDUCATION
GROUP
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
(In
thousands of U.S. dollars, except share, ADS,
per share and per ADS data)
|
|
|
|
|
|
For the Three
Months Ended February 28,
|
|
For the Fiscal Year
Ended February
28,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
Net
revenues
|
$ 504,098
|
|
$ 726,561
|
|
$
1,715,016
|
|
$
2,562,984
|
Cost of revenues
(note 1)
|
246,680
|
|
306,174
|
|
882,316
|
|
1,164,454
|
Gross
profit
|
257,418
|
|
420,387
|
|
832,700
|
|
1,398,530
|
Operating expenses
(note 1)
|
|
|
|
|
|
|
|
Selling and
marketing
|
78,347
|
|
136,196
|
|
242,102
|
|
484,000
|
General and
administrative
|
112,344
|
|
169,553
|
|
386,287
|
|
579,672
|
Impairment
loss on intangible
assets and goodwill
|
-
|
|
-
|
|
358
|
|
-
|
Total operating
expenses
|
190,691
|
|
305,749
|
|
628,747
|
|
1,063,672
|
Government
subsidies
|
149
|
|
68
|
|
4,651
|
|
6,724
|
Income from
operations
|
66,876
|
|
114,706
|
|
208,604
|
|
341,582
|
Interest
income
|
13,353
|
|
10,285
|
|
39,837
|
|
59,614
|
Interest
expense
|
(3,639)
|
|
(5,747)
|
|
(16,640)
|
|
(17,628)
|
Other income
|
3,230
|
|
24,706
|
|
17,406
|
|
131,727
|
Impairment loss on
long-term
investments
|
-
|
|
(7,247)
|
|
(2,213)
|
|
(58,091)
|
Income before
provision for
income tax and loss from
equity method investments
|
79,820
|
|
136,703
|
|
246,994
|
|
457,204
|
Provision for income
tax
|
(8,711)
|
|
(33,236)
|
|
(44,653)
|
|
(76,504)
|
Loss from equity
method
investments
|
(2,640)
|
|
(5,114)
|
|
(7,678)
|
|
(16,186)
|
Net
income
|
$ 68,469
|
|
$ 98,353
|
|
$ 194,663
|
|
$ 364,514
|
Add: Net loss
attributable to
noncontrolling interest
|
1,070
|
|
1,259
|
|
3,777
|
|
2,722
|
Total net income
attributable
to TAL Education Group
|
$ 69,539
|
|
$ 99,612
|
|
$ 198,440
|
|
$ 367,236
|
Net income per
common share
|
|
|
|
|
|
|
|
Basic
|
$ 0.38
|
|
$ 0.52
|
|
$ 1.13
|
|
$ 1.93
|
Diluted
|
0.35
|
|
0.50
|
|
1.03
|
|
1.83
|
Net income per ADS
(note 2)
|
|
|
|
|
|
|
|
Basic
|
$ 0.13
|
|
$ 0.17
|
|
$ 0.38
|
|
$ 0.64
|
Diluted
|
0.12
|
|
0.17
|
|
0.34
|
|
0.61
|
Weighted average
shares used in
calculating net income per
common share
|
|
|
|
|
|
|
|
Basic
|
185,165,815
|
|
191,020,638
|
|
174,979,574
|
|
189,951,643
|
Diluted
|
197,095,699
|
|
200,670,945
|
|
194,331,305
|
|
200,224,934
|
|
|
|
|
|
|
|
|
Note1: Share-based
compensation expenses are included in the operating costs and
expenses as follows:
|
|
For the Three
Months
|
|
For the
Fiscal Year
|
|
Ended February
28,
|
Ended February
28,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
Cost of
revenues
|
$ 112
|
|
$ 200
|
|
$ 366
|
|
$ 706
|
Selling and
marketing
|
1,331
|
|
3,331
|
|
5,037
|
|
10,454
|
General and
administrative
|
11,156
|
|
18,744
|
|
41,747
|
|
66,117
|
Total
|
$12,599
|
|
$ 22,275
|
|
$ 47,150
|
|
$ 77,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 2: Three ADSs
represent one Class A common Share.
|
TAL EDUCATION
GROUP
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
|
(In
thousands of U.S. dollars)
|
|
|
For the Three
Months Ended
February
28,
|
|
For the
Fiscal Year Ended
February
28,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$ 68,469
|
|
$ 98,353
|
|
$ 194,663
|
|
$ 364,514
|
Other
comprehensive
income/(loss), net of tax
|
59,597
|
|
53,507
|
|
77,780
|
|
(116,237)
|
Comprehensive
income
|
128,066
|
|
151,860
|
|
272,443
|
|
248,277
|
Add:
Comprehensive
(income) / loss attributable
to noncontrolling interest
|
(254)
|
|
694
|
|
2,453
|
|
3,681
|
Comprehensive
income
attributable to TAL
Education Group
|
$127,812
|
|
$ 152,554
|
|
$ 274,896
|
|
$ 251,958
|
TAL EDUCATION
GROUP
|
Reconciliation of
Non-GAAP Measures to the Most Comparable GAAP
Measures
|
(In
thousands of U.S. dollars, except share, ADS,
per share and per ADS data)
|
|
|
For the Three
Months
Ended
February 28,
|
|
For the
Fiscal Year
Ended February 28,
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$ 246,680
|
|
$ 306,174
|
|
$ 882,316
|
|
$
1,164,454
|
Share-based
compensation
expense in cost of revenues
|
112
|
|
200
|
|
366
|
|
706
|
Non-GAAP cost of
revenues
|
246,568
|
|
305,974
|
|
881,950
|
|
1,163,748
|
|
|
|
|
|
|
|
|
Selling and
marketing expenses
|
78,347
|
|
136,196
|
|
242,102
|
|
484,000
|
Share-based
compensation
expense in selling and marketing
expenses
|
1,331
|
|
3,331
|
|
5,037
|
|
10,454
|
Non-GAAP selling
and
marketing expenses
|
77,016
|
|
132,865
|
|
237,065
|
|
473,546
|
General and
administrative
expenses
|
112,344
|
|
169,553
|
|
386,287
|
|
579,672
|
Share-based
compensation
expense in general and
administrative expenses
|
11,156
|
|
18,744
|
|
41,747
|
|
66,117
|
Non-GAAP general
and
administrative expenses
|
101,188
|
|
150,809
|
|
344,540
|
|
513,555
|
|
|
|
|
|
|
|
|
Operating costs
and expenses
|
437,371
|
|
611,923
|
|
1,511,063
|
|
2,228,126
|
Share-based
compensation
expense in operating costs and
expenses
|
12,599
|
|
22,275
|
|
47,150
|
|
77,277
|
Non-GAAP operating
costs and
expenses
|
424,772
|
|
589,648
|
|
1,463,913
|
|
2,150,849
|
|
|
|
|
|
|
|
|
Income from
operations
|
66,876
|
|
114,706
|
|
208,604
|
|
341,582
|
Share based
compensation
expenses
|
12,599
|
|
22,275
|
|
47,150
|
|
77,277
|
Non-GAAP income
from
operations
|
79,475
|
|
136,981
|
|
255,754
|
|
418,859
|
|
|
|
|
|
|
|
|
Net income
attributable to TAL
Education Group
|
69,539
|
|
99,612
|
|
198,440
|
|
367,236
|
Share based
compensation expenses
|
12,599
|
|
22,275
|
|
47,150
|
|
77,277
|
Non-GAAP net
income
attributable to TAL Education
Group
|
$
82,138
|
|
$
121,887
|
|
$
245,590
|
|
$
444,513
|
Net income per
ADS
|
|
|
|
|
|
|
|
Basic
|
$ 0.13
|
|
$ 0.17
|
|
$ 0.38
|
|
$ 0.64
|
Diluted
|
0.12
|
|
0.17
|
|
0.34
|
|
0.61
|
Non-GAAP net
income per
ADS (Note 3)
|
|
|
|
|
|
|
|
Basic
|
$ 0.15
|
|
$ 0.21
|
|
$ 0.47
|
|
$ 0.78
|
Diluted
|
0.14
|
|
0.20
|
|
0.43
|
|
0.74
|
|
|
|
|
|
|
|
|
ADSs used in
calculating net
income per ADS
|
|
|
|
|
|
|
|
Basic
|
555,497,445
|
|
573,061,914
|
|
524,938,722
|
|
569,854,929
|
Diluted
|
591,287,098
|
|
602,012,835
|
|
582,993,914
|
|
600,674,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 3: The Non-GAAP
adjusted net income per ADS is computed using Non-GAAP adjusted
net
income and the same number of ADSs used in GAAP basic and diluted
EPS calculation.
|
View original
content:http://www.prnewswire.com/news-releases/tal-education-group-announces-unaudited-financial-results-for-the-fourth-fiscal-quarter-and-the-fiscal-year-2019-300838142.html
SOURCE TAL Education Group