BEIJING, Jan. 19, 2017 /PRNewswire/ --
-Quarterly Net Revenues up by 83.3%
Year-Over-Year
-Quarterly Income from Operations
Increased by 129.8% Year-Over-Year
-Quarterly Non-GAAP
Income from Operations Increased by 93.1%
Year-Over-Year
-Quarterly Total Student Enrollments up
by 74.6% Year-Over-Year
-Company Changed
NYSE Ticker Symbol to 'TAL' From December 1,
2016
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 third quarter of fiscal year
2017 ended November 30, 2016.
Highlights for the Third Quarter of Fiscal Year 2017
- Net revenues increased by 83.3% year-over-year to US$260.6 million from US$142.2 million in the same period of the prior
year.
- Income from operations increased by 129.8% to US$22.1 million from US$9.6 million in the same period of the prior
year. Non-GAAP income from operations increased by 93.1% to
US$31.1 million from US$16.1 million in the same period of the prior
year.
- Basic and diluted net income per American Depositary Share
("ADS") were US$0.17 and US$0.16, respectively. Non-GAAP basic and diluted
net income per ADS, which excluded share-based compensation
expenses, were US$0.28 and
US$0.26, respectively. Each ADS
represents two Class A common shares.
- Cash, cash equivalents and term deposits totaled US$616.5 million as of November 30, 2016, compared to US$451.3 million as of February 29, 2016.
- Total student enrollments increased by 74.6% year-over-year to
approximately 834,420 from approximately 477,960 in the same period
of the prior year.
Highlights for the Nine Months Ended November 30, 2016
- Net revenues increased by 63.4% year-over-year to US$726.8 million from US$444.9 million in the same period of the prior
year.
- Income from operations increased by 33.3% to US$91.2 million from US$68.4 million in the same period of fiscal year
2016. Non-GAAP income from operations increased by 36.5% to
US$116.9 million from US$85.7 million in the same period of the prior
year.
- Net income attributable to TAL decreased by 10.2%
year-over-year to US$82.6 million
from US$92.0 million in the same
period of the prior year.
- Non-GAAP net income attributable to TAL, which excluded
share-based compensation expenses, decreased by 0.9% year-over-year
to US$108.3 million from US$109.3 million in the same period of the prior
year.
- Basic and diluted net income per ADS were US$1.02 and US$0.94, respectively. Non-GAAP basic and diluted
net income per ADS, excluding share-based compensation expenses,
were US$1.34 and US$1.21, respectively.
- Total student enrollments during the first nine months of
fiscal year 2017 increased by 70.8% year-over-year to approximately
2,598,120 from approximately 1,521,510 in the same period of the
prior year.
- Total physical network increased from 363 learning centers in
25 cities as of February 29, 2016, to
474 learning centers in 27 cities as of November 30, 2016, including 52 learning centers
in 5 cities from Firstleap Education ("Firstleap").
Financial and Operating Data -- Third Quarter of Fiscal Year 2017
(In US$ thousands, except per ADS data, student enrollments and
percentages)
|
Three Months
Ended
|
|
November
30,
|
|
2015
|
2016
|
Pct. Change
|
|
Net
revenues
|
142,183
|
260,553
|
83.3%
|
|
Operating
income
|
9,604
|
22,070
|
129.8%
|
|
Non-GAAP operating
income
|
16,114
|
31,125
|
93.1%
|
|
Net income
attributable to TAL
|
9,585
|
13,625
|
42.2%
|
|
Non-GAAP net income
attributable to TAL
|
16,095
|
22,681
|
40.9%
|
|
Net income per ADS
attributable to TAL – basic
|
0.12
|
0.17
|
39.7%
|
|
Net income per ADS
attributable to TAL – diluted
|
0.12
|
0.16
|
36.3%
|
|
Non-GAAP net income
per ADS attributable to TAL – basic
|
0.20
|
0.28
|
38.5%
|
|
Non-GAAP net income
per ADS attributable to TAL – diluted
|
0.19
|
0.26
|
32.8%
|
|
Total student
enrollments in small class, one-on-one, and online
courses
|
477,960
|
834,420
|
74.6%
|
|
Nine Months
Ended
|
|
November
30,
|
|
2015
|
2016
|
Pct. Change
|
|
Net
revenues
|
444,900
|
726,769
|
63.4%
|
|
Operating
income
|
68,405
|
91,164
|
33.3%
|
|
Non-GAAP operating
income
|
85,657
|
116,895
|
36.5%
|
|
Net income
attributable to TAL
|
92,019
|
82,602
|
-10.2%
|
|
Non-GAAP net income
attributable to TAL
|
109,271
|
108,332
|
-0.9%
|
|
Net income per ADS
attributable to TAL – basic
|
1.15
|
1.02
|
-11.5%
|
|
Net income per ADS
attributable to TAL – diluted
|
1.07
|
0.94
|
-12.5%
|
|
Non-GAAP net income
per ADS attributable to TAL – basic
|
1.37
|
1.34
|
-2.3%
|
|
Non-GAAP net income
per ADS attributable to TAL – diluted
|
1.26
|
1.21
|
-4.0%
|
|
Total student
enrollments in small class, one-on-one, and online
courses
|
1,521,510
|
2,598,120
|
70.8%
|
"The strong revenue growth in the third quarter was partly
driven by contribution of the newly acquired businesses including
Firstleap and Shunshun, and partly by the robust enrollment growth
from the new capacities we added in fiscal year 2017. As planned,
we entered two new cities, Changchun and Guiyang, widening our geographic footprint to
27 cities across China. We will
maintain this healthy speed of network expansion and continue
laying a strong foundation for our long-term growth," said Mr. Rong
Luo, TAL's Chief Financial Officer.
Mr. Luo continued, "At the same time, we will maintain our
strategy of investing in new technology. Keeping our vision in mind
that science and technology advance education, we can solidify our
early-mover advantage on the crossroads where the technology meets
education."
Financial Results for the Third Quarter of Fiscal Year
2017
Net Revenues
In the third quarter of fiscal year 2017, TAL reported net
revenues of US$260.6 million,
representing an 83.3% increase from US$142.2
million in the third quarter of fiscal year 2016. The
increase was mainly driven by an increase in total student
enrollments, which increased by 74.6% to approximately 834,420 from
approximately 477,960 in the same period of 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 the third quarter of fiscal year 2017, operating costs and
expenses were US$238.8 million, a
79.3% increase from US$133.2 million
in the third quarter of fiscal year 2016. Non-GAAP operating costs
and expenses, which excluded share-based compensation expenses,
were US$229.8 million, an 81.3 %
increase from US$126.7 million in the
third quarter of fiscal year 2016.
Cost of revenues increased by 79.6% to US$131.9 million, from US$73.4 million in the third quarter of fiscal
year 2016. The increase in cost of revenues was mainly due to i) an
increase in teacher compensation and rental costs; and ii) new
business acquisition of Firstleap and Beijing Shunshun Bida
Information Consulting Co., Ltd. ("Shunshun Bida"). Non-GAAP cost
of revenues, which excluded share-based compensation expenses,
increased by 79.5% to US$131.8
million from US$73.4 million
in the third quarter of fiscal year 2016.
Selling and marketing expenses increased by 104.5% to
US$35.2 million from US$17.2 million in the third quarter of fiscal
year 2016. Non-GAAP selling and marketing expenses, which excluded
share-based compensation expenses, increased by 107.2% to
US$34.4 million from US$16.6 million in the third quarter of fiscal
year 2016. The increase of selling and marketing expenses in the
third quarter of fiscal year 2017 was primarily a result of a rise
in the compensation to sales and marketing staff to support a
greater number of programs and service offerings compared to the
year-ago period, as well as more marketing promotion activities
both in brand enhancement and consumer experience.
General and administrative expenses increased by 68.5% to
US$71.7 million from US$42.6 million in the third quarter of fiscal
year 2016. 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 year-ago period and a rise
in compensation to our general and administrative personnel, in
particular such personnel supporting our online education
initiatives among other new programs and service offerings, as well
as an increase in rental cost. Non-GAAP general and administrative
expenses, which excluded share-based compensation expenses,
increased by 73.2% to US$63.5 million
from US$36.7 million in the third
quarter of fiscal year 2016.
Total share-based compensation expenses allocated to the related
operating costs and expenses increased by 39.1% to US$9.1 million in the third quarter of fiscal
year 2017 from US$6.5 million in the
same period of fiscal year 2016.The increase was mainly due to new
grants of non-vested shares and options to directors and employees
by the Company in fiscal year 2017.
Gross
Profit
Gross profit increased by 87.2% to US$128.7 million from US$68.7 million in the third quarter of fiscal
year 2016.
Income from Operations
Income from operations increased by 129.8% to US$22.1 million from US$9.6 million in the third quarter of fiscal
year 2016. Non-GAAP income from operations, which excluded
share-based compensation expenses, increased by 93.1% to
US$31.1 million from US$16.1 million in the third quarter of fiscal
year 2016.
Other (Expense) /
Income
Other expense was US$0.7 million
for the third quarter of fiscal year 2017, compared to other
expense of US$0.4 million in the
third quarter of fiscal year 2016.
Income Tax Expense
Income tax expense was US$3.1
million in the third quarter of fiscal year 2017, compared
to US$2.6 million in the third
quarter of fiscal year 2016. The increase was mainly due to an
increase in income before tax and estimated annual effective income
tax rate.
Net Income Attributable to TAL Education Group
Net income attributable to TAL increased by 42.2% to
US$13.6 million from US$9.6 million in the third quarter of fiscal
year 2016. Non-GAAP net income attributable to TAL, which excluded
share-based compensation expenses, increased by 40.9% to
US$22.7 million from US$16.1 million in the third quarter of fiscal
year 2016.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were US$0.17 and US$0.16, respectively in the third quarter of
fiscal year 2017. Non-GAAP basic and diluted net income per ADS,
which excluded share-based compensation expenses, were US$0.28 and US$0.26, respectively.
Capital Expenditures
Capital expenditures for the third quarter of fiscal year 2017
were US$17.1 million, representing an
increase of US$10.7 million from
US$6.4 million in the third quarter
of fiscal year 2016. The increase was mainly due to 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.
Cash, Cash Equivalents, Term Deposits and
Short-Term Investments
As of November 30, 2016, the
Company had US$582.3 million of cash
and cash equivalents, US$34.2 million
of term deposits and US$59.9 million
of short-term investments, compared to US$434.0 million of cash and cash equivalents,
US$17.3 million of term deposits and
US$ 27.5 million of short-term
investments as of February 29,
2016.
Deferred Revenue
As of November 30, 2016, the
Company's deferred revenue balance was US$679.9 million, compared to US$351.7 million as of November 30, 2015, representing an increase of
93.3%, which primarily consisted of the tuition revenue collected
in advance for the spring semester and winter holiday of Xueersi
Peiyou small classes and the deferred revenue acquired during the
business acquisitions.
Financial Results for the First Nine Months of Fiscal Year
2017
Net Revenues
For the first nine months of fiscal year 2017, TAL reported net
revenues of US$726.8 million,
representing a 63.4% increase from US$444.9
million in the first nine months of fiscal year 2016. The
increase was mainly driven by an increase in total student
enrollments, which increased by 70.8% to approximately 2,598,120
from approximately 1,521,510 in the same period of the prior year.
The increase in total student enrollments was driven primarily by
increases of enrollments in the small class offerings and online
courses.
Operating Costs and Expenses
In the first nine months of fiscal year 2017, operating costs
and expenses were US$638.7 million, a
68.2% increase from US$379.8 million
in the first nine months of fiscal year 2016. Non-GAAP operating
costs and expenses, which excluded share-based compensation
expenses, were US$613.0 million, a
69.1% increase from US$362.5 million
in the first nine months of fiscal year 2016.
Cost of revenues increased by 69.5% to US$364.2 million from US$214.9 million in the first nine months of
fiscal year 2016. The increase in cost of revenues was mainly due
to i) an increase in teacher compensation and rental costs; and ii)
cost of sales attributable to the newly acquired business. Non-GAAP
cost of revenues, which excluded share-based compensation expenses,
increased by 69.5% to US$364.2
million from US$214.8 million
in the first nine months of fiscal year 2016.
Selling and marketing expenses increased by 71.6% to
US$88.0 million from US$51.3 million in the first nine months of
fiscal year 2016. Non-GAAP selling and marketing expenses, which
excluded share-based compensation expenses, increased by 72.6% to
US$85.6 million from US$49.6 million in the first nine months of
fiscal year 2016. The increase of selling and marketing expenses in
the first nine months of fiscal year 2017 was primarily a result of
an increase in the compensation to sales and marketing staff to
support a greater number of programs and service offerings versus
the year-ago period.
General and administrative expenses increased by 64.1% to
US$186.5 million from US$113.6 million in the first nine months of
fiscal year 2016. The increase in general and administrative
expenses was mainly due to an increase in the number of our general
and administrative personnel compared to the year-ago period and an
increase in compensation to our general and administrative
personnel, in particular such personnel supporting our online
education initiatives among other new programs and service
offerings, as well as an increase in consulting fees related to
investment activities. Non-GAAP general and administrative
expenses, which excluded share-based compensation expenses,
increased by 66.4% to US$163.2
million from US$98.1 million
in the first nine months of fiscal year 2016.
Total share-based compensation expenses allocated to the related
operating costs and expenses increased by 49.1% to US$25.7 million in the first nine months of
fiscal year 2017 from US$17.3 million
in the same period of fiscal year 2016.The increase was mainly due
to new grants of non-vested shares and options to directors and
employees by the Company in fiscal year 2017.
Gross Profit
Gross profit increased by 57.6% to US$362.5 million from US$230.0 million in the first nine months of
fiscal year 2016.
Income from Operations
Income from operations increased by 33.3% to US$91.2 million from US$68.4 million in the first nine months of
fiscal year 2016. Non-GAAP income from operations, which excluded
share-based compensation expenses, increased by 36.5% to
US$116.9 million from US$85.7 million in the first nine months of
fiscal year 2016.
Other (Expense) /
Income
Other income was US$23.1 million
for the first nine months of fiscal year 2017, compared to other
expense of US$3.0 million in the
first nine months of fiscal year 2016. Other income in the first
nine months of fiscal year 2017 was mainly due to a gain from
remeasuring the fair value of the previously held equity interests
in an acquiree at its acquisition date fair value during a business
combination achieved in stages.
Impairment loss on long-term investments
Impairment loss on long-term investments was $6.0 million, mainly due to the
other-than-temporary declines in the value of long-term investments
in several investees.
Gain from disposal of components
Gain from disposal of a component was nil for the first nine
months of fiscal year 2017, compared to a gain of US$50.4 million in the second quarter of fiscal
year 2016, which was mainly derived from a transaction in which the
Company transferred its one-on-one business component in
Guangzhou in exchange for
noncontrolling equity interest in a third party.
Income Tax Expense
Income tax expense was US$25.1
million in the first nine months of fiscal year 2017,
compared to US$25.3 million in the
first nine months of fiscal year 2016.
Net Income Attributable to TAL Education Group
Net income attributable to TAL decreased by 10.2% to
US$82.6 million from US$92.0 million in the first nine months of
fiscal year 2016. Non-GAAP net income attributable to TAL, which
excluded share-based compensation expenses, decreased by 0.9% to
US$108.3 million from US$109.3 million in the first nine months of
fiscal year 2016.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were US$1.02 and US$0.94, respectively, in the first nine months
of fiscal year 2017. Non-GAAP basic and diluted net income per ADS,
which excluded share-based compensation expenses, were US$1.34 and US$1.21, respectively.
Business Outlook
Based on the Company's current estimates, total net revenues for
the fourth quarter of fiscal year 2017 are expected to grow 73% to
75% on a year-over-year basis, in RMB terms. Taking into
consideration the recent significant change in RMB exchange rate
against the US dollar, the Company expects total net revenues for
the fourth quarter of fiscal year 2017 to be between US$285.3 million and US$288.8 million,
representing an increase of 63% to 65% on a year-over-year basis,
assuming no material change in exchange rates.
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 third fiscal quarter of
fiscal year 2017 ended November 30,
2016 at 8:00 a.m. U.S. Eastern
Time on January 19, 2017
(9:00 p.m. Beijing time on January
19, 2017).
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
|
|
- Mainland China toll
free:
|
400-620-8038
|
|
- International toll:
|
+65-6713-5090
|
|
Conference ID:
|
42442496
|
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 7:59 a.m. U.S. Eastern time,
January 27, 2017 (8:59 p.m. Beijing time, January 27,
2017).
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
|
|
- Mainland China toll
free:
|
400-602-2065
|
|
- International
toll:
|
+61-2-8199-0299
|
|
Conference ID:
|
42442496
|
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the outlook for the fourth quarter of fiscal year 2017 and the
fiscal year ending February 28, 2017,
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 including mathematics, English, Chinese, physics,
chemistry, and biology. The Company's learning center network
includes 474 physical learning centers as of November 30, 2016, located in 27 key cities in
China: Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Wuhan, Xi`an, Chengdu, Nanjing, Hangzhou, Taiyuan, Zhengzhou, Chongqing, Suzhou, Shenyang, Jinan, Shijiazhuang, Qingdao, Changsha, Luoyang, Nanchang, Ningbo, Wuxi, Fuzhou, Hefei, Changchun and Guiyang. 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." We changed the symbol from "XRS"
to "TAL" effective December 1,
2016.
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:
Mei Li
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 U.S.
dollars)
|
|
As
of
February 29,
2016
|
|
As
of
November 30,
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$434,042,036
|
|
$582,286,134
|
|
Term
deposits
|
17,292,636
|
|
34,240,307
|
|
Restricted
cash-current
|
1,083,787
|
|
1,917,883
|
|
Short-term
investments
|
27,470,431
|
|
59,943,054
|
|
Inventory
|
600,441
|
|
1,653,749
|
|
Amounts due
from related parties-current
|
2,594,430
|
|
5,625,453
|
|
Deferred tax
assets-current
|
738,406
|
|
1,199,233
|
|
Income tax
receivable
|
-
|
|
456,338
|
|
Prepaid
expenses and other current assets
|
32,037,407
|
|
76,548,309
|
|
Total current
assets
|
515,859,574
|
|
763,870,460
|
|
Restricted
cash-non-current
|
3,881,858
|
|
5,409,287
|
|
Property and
equipment, net
|
114,629,683
|
|
140,326,620
|
|
Deferred tax
assets-non-current
|
6,654,778
|
|
13,860,719
|
|
Rental
deposit
|
17,114,552
|
|
27,512,519
|
|
Intangible
assets, net
|
15,194,421
|
|
39,457,621
|
|
Goodwill
|
87,022,517
|
|
260,146,536
|
|
Amounts due
from related party-non-current
|
1,342,999
|
|
701,685
|
|
Long-term
investments
|
274,356,960
|
|
330,966,603
|
|
Long-term
prepayments and other non-current assets
|
25,321,691
|
|
175,741,907
|
|
Total
assets
|
$1,061,379,033
|
|
$1,757,993,957
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable
(including accounts payable of the
consolidated VIEs without recourse to TAL
Education Group of 9,371,013 and 17,232,379 as
of
February 29, 2016, and November 30, 2016,
respectively)
|
$10,404,047
|
|
$19,670,213
|
|
Deferred
revenue-current (including deferred revenue-
current of the consolidated VIEs without recourse to
TAL Education Group of 260,137,064 and
635,097,350 as of February 29, 2016, and November
30, 2016, respectively)
|
280,934,750
|
|
670,009,028
|
|
Amounts due to
related parties (including amounts due
to related parties of the consolidated VIEs
without
recourse to TAL Education Group of 4,277,896
and
2,089,198 as of February 29, 2016, and November 30,
2016, respectively)
|
4,277,896
|
|
24,775,943
|
|
Accrued expenses and
other current liabilities (including
accrued expenses and other current liabilities of the
consolidated VIEs without recourse to TAL
Education Group of 51,183,663 and 82,687,350 as of
February 29, 2016, and November 30, 2016,
respectively)
|
70,267,551
|
|
103,582,636
|
|
Income tax payable
(including income tax payable of
the consolidated VIEs without recourse to TAL
Education Group of 15,525,069 and 14,627,880
as of February 29, 2016, and November 30,
2016,
respectively)
|
17,187,453
|
|
19,591,507
|
|
Deferred tax
liabilities-current (including deferred tax
liabilities-current of the consolidated VIEs
without
recourse to TAL Education Group of 57,230
and
71,927 as of February 29, 2016, and November
30,
2016, respectively)
|
91,730
|
|
170,812
|
|
Total current
liabilities
|
383,163,427
|
|
837,800,139
|
|
Deferred
revenue-non-current (including deferred
revenue-non-current of the consolidated VIEs without
recourse to TAL Education Group of 8,346,457 and
9,868,586 as of February 29, 2016, and November 30,
2016, respectively)
|
8,346,457
|
|
9,868,586
|
|
Deferred tax
liabilities-non-current (including deferred
tax liabilities-non-current of the consolidated
VIEs
without recourse to TAL Education Group of
1,164,389 and 11,640,761 as of February 29,
2016,
and November 30, 2016, respectively)
|
1,304,361
|
|
11,718,403
|
|
Bond payable
(including bond payable of the
consolidated VIEs without recourse to TAL
Education Group of nil and nil as of February
29,
2016, and November 30, 2016, respectively)
|
227,827,301
|
|
229,195,172
|
|
Long-term debt
(including long-term debt of the
consolidated VIEs without recourse to
TAL
Education Group of nil and nil as of February 29,
2016, and November 30, 2016, respectively)
|
-
|
|
30,000,000
|
|
Total
liabilities
|
620,641,546
|
|
1,118,582,300
|
|
|
|
|
|
TAL Education
Group Shareholders' Equity
|
|
|
|
|
Class A common
shares
|
90,310
|
|
91,498
|
|
Class B common
shares
|
71,456
|
|
71,456
|
|
Additional paid-in
capital
|
108,404,873
|
|
143,715,665
|
|
Statutory
reserve
|
22,981,900
|
|
22,981,900
|
|
Retained
earnings
|
306,381,011
|
|
382,777,137
|
|
Accumulated other
comprehensive (loss)/income
|
(949,647)
|
|
52,477,050
|
|
Total TAL
Education Group's equity
|
436,979,903
|
|
602,114,706
|
|
Noncontrolling
interest
|
3,757,584
|
|
37,296,951
|
|
Total
equity
|
440,737,487
|
|
639,411,657
|
|
Total liabilities
and equity
|
$1,061,379,033
|
|
$1,757,993,957
|
|
TAL EDUCATION
GROUP
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In U.S. dollars,
except share, ADS, per share and per ADS data)
|
|
For the Three
Months Ended
November
30,
|
|
For the Nine
Months Ended
November
30,
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
Net
revenues
|
$142,183,159
|
|
$260,552,500
|
|
$444,900,103
|
|
$726,768,875
|
|
Cost of revenues
(note 1)
|
73,434,709
|
|
131,868,712
|
|
214,860,370
|
|
364,234,954
|
|
Gross
profit
|
68,748,450
|
|
128,683,788
|
|
230,039,733
|
|
362,533,921
|
|
Operating expenses
(note 1)
|
|
|
|
|
|
|
|
|
Selling and
marketing
|
17,229,350
|
|
35,236,057
|
|
51,271,631
|
|
87,979,800
|
|
General and
administrative
|
42,555,604
|
|
71,715,676
|
|
113,628,108
|
|
186,488,899
|
|
Total operating
expenses
|
59,784,954
|
|
106,951,733
|
|
164,899,739
|
|
274,468,699
|
|
Government
subsidies
|
640,048
|
|
337,487
|
|
3,264,634
|
|
3,099,094
|
|
Income from
operations
|
9,603,544
|
|
22,069,542
|
|
68,404,628
|
|
91,164,316
|
|
Interest
income
|
3,809,519
|
|
3,884,150
|
|
13,548,878
|
|
11,721,610
|
|
Interest
expense
|
(1,880,618)
|
|
(3,791,536)
|
|
(5,612,593)
|
|
(8,346,747)
|
|
Other
(expenses)/income
|
(355,377)
|
|
(661,721)
|
|
(3,005,870)
|
|
23,125,398
|
|
Impairment loss on
long-term
investments
|
-
|
|
(3,769,650)
|
|
(7,503,944)
|
|
(5,981,292)
|
|
Gain on fair value
change of
long-term investments
|
681,000
|
|
-
|
|
1,131,000
|
|
-
|
|
Gain from disposal
of
components
|
377,126
|
|
-
|
|
50,377,126
|
|
-
|
|
Gain from disposal
of
investments
|
-
|
|
-
|
|
235,797
|
|
-
|
|
Income before
provision for
income tax and loss from
equity method investments
|
12,235,194
|
|
17,730,785
|
|
117,575,022
|
|
111,683,285
|
|
Provision for income
tax
|
(2,620,266)
|
|
(3,053,243)
|
|
(25,253,148)
|
|
(25,128,529)
|
|
Loss from equity
method
investments
|
(47,910)
|
|
(2,351,086)
|
|
(320,931)
|
|
(6,191,219)
|
|
Net
income
|
9,567,018
|
|
12,326,456
|
|
92,000,943
|
|
80,363,537
|
|
Add: Net loss
attributable to
noncontrolling interest
|
17,592
|
|
1,299,005
|
|
18,345
|
|
2,238,337
|
|
Total net income
attributable
to TAL Education Group
|
$9,584,610
|
|
$13,625,461
|
|
$92,019,288
|
|
$82,601,874
|
|
Net income per
common share
|
|
|
|
|
|
|
|
|
Basic
|
$0.06
|
|
$0.08
|
|
$0.58
|
|
$0.51
|
|
Diluted
|
0.06
|
|
0.08
|
|
0.54
|
|
0.47
|
|
Net income per ADS
(note 2)
|
|
|
|
|
|
|
|
|
Basic
|
$0.12
|
|
$0.17
|
|
$1.15
|
|
$1.02
|
|
Diluted
|
0.12
|
|
0.16
|
|
1.07
|
|
0.94
|
|
Weighted average
shares used
in
calculating net income per
common share
|
|
|
|
|
|
|
|
|
Basic
|
160,022,437
|
|
162,852,524
|
|
159,915,849
|
|
162,256,681
|
|
Diluted
|
165,270,632
|
|
172,359,338
|
|
182,357,981
|
|
188,466,059
|
|
Note 1: Share-based
compensation expenses are included in the operating costs and
expenses as follows:
|
|
For the Three
Months
|
|
For the Nine
Months
|
|
Ended November
30,
|
|
Ended November
30,
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
Cost of
revenues
|
$11,007
|
|
$44,655
|
|
$33,265
|
|
$67,993
|
|
Selling and
marketing
|
615,834
|
|
812,288
|
|
1,660,589
|
|
2,350,914
|
|
General and
administrative
|
5,883,976
|
|
8,198,227
|
|
15,558,332
|
|
23,311,326
|
|
Total
|
$6,510,817
|
|
$9,055,170
|
|
$17,252,186
|
|
$25,730,233
|
|
Note 2: Each ADS
represents two Class A common shares.
|
|
TAL EDUCATION
GROUP
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(In U.S.
Dollars)
|
|
For the Three
Months Ended
November
30,
|
|
For the Nine
Months Ended
November
30,
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
Net
income
|
$9,567,018
|
|
$12,326,456
|
|
$92,000,943
|
|
$80,363,537
|
|
Other
comprehensive
(loss)/income, net of
tax
|
(714,326)
|
|
(12,385,172)
|
|
(526,774)
|
|
51,962,294
|
|
Comprehensive
income
|
8,852,692
|
|
(58,716)
|
|
91,474,169
|
|
132,325,831
|
|
Add: Comprehensive
loss
attributable to
noncontrolling
interest
|
18,038
|
|
2,697,983
|
|
23,216
|
|
3,702,739
|
|
Comprehensive
income
attributable to
TAL
Education
Group
|
$8,870,730
|
|
$2,639,267
|
|
$91,497,385
|
|
$136,028,570
|
|
TAL EDUCATION
GROUP
Reconciliation of
Non-GAAP Measures to the Most Comparable GAAP
Measures
(In U.S. dollars,
except share, ADS, per share and per ADS data)
|
|
For the Three
Months
Ended November
30,
|
|
For the Nine
Months
Ended November 30,
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$73,434,709
|
|
$131,868,712
|
|
$214,860,370
|
|
$364,234,954
|
|
Share-based
compensation
expense in cost of revenues
|
11,007
|
|
44,655
|
|
33,265
|
|
67,993
|
|
Non-GAAP cost of
revenues
|
73,423,702
|
|
131,824,057
|
|
214,827,105
|
|
364,166,961
|
|
|
|
|
|
|
|
|
|
Selling and
marketing expenses
|
17,229,350
|
|
35,236,057
|
|
51,271,631
|
|
87,979,800
|
|
Share-based
compensation
expense in selling and
marketing expenses
|
615,834
|
|
812,288
|
|
1,660,589
|
|
2,350,914
|
|
Non-GAAP selling
and marketing expenses
|
16,613,516
|
|
34,423,769
|
|
49,611,042
|
|
85,628,886
|
|
General and
administrative expenses
|
42,555,604
|
|
71,715,676
|
|
113,628,108
|
|
186,488,899
|
|
Share-based
compensation
expense in general and
administrative expenses
|
5,883,976
|
|
8,198,227
|
|
15,558,332
|
|
23,311,326
|
|
Non-GAAP general
and
administrative
expenses
|
36,671,628
|
|
63,517,449
|
|
98,069,776
|
|
163,177,573
|
|
|
|
|
|
|
|
|
|
Operating costs
and expenses
|
133,219,663
|
|
238,820,445
|
|
379,760,109
|
|
638,703,653
|
|
Share-based
compensation
expense in operating costs and
expenses
|
6,510,817
|
|
9,055,170
|
|
17,252,186
|
|
25,730,233
|
|
Non-GAAP operating
costs and expenses
|
126,708,846
|
|
229,765,275
|
|
362,507,923
|
|
612,973,420
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
9,603,544
|
|
22,069,542
|
|
68,404,628
|
|
91,164,316
|
|
Share based
compensation
expenses
|
6,510,817
|
|
9,055,170
|
|
17,252,186
|
|
25,730,233
|
|
Non-GAAP income
from
operations
|
16,114,361
|
|
31,124,712
|
|
85,656,814
|
|
116,894,549
|
|
|
|
|
|
|
|
|
|
Net income
attributable to TAL Education Group
|
9,584,610
|
|
13,625,461
|
|
92,019,288
|
|
82,601,874
|
|
Share based
compensation
expenses
|
6,510,817
|
|
9,055,170
|
|
17,252,186
|
|
25,730,233
|
|
Non-GAAP net
income
attributable to
TAL Education Group
|
$16,095,427
|
|
$22,680,631
|
|
$109,271,474
|
|
$108,332,107
|
|
Net income per
ADS
|
|
|
|
|
|
|
|
|
Basic
|
$0.12
|
|
$0.17
|
|
$1.15
|
|
$1.02
|
|
Diluted
|
0.12
|
|
0.16
|
|
1.07
|
|
0.94
|
|
Non-GAAP Net
income per ADS
|
|
|
|
|
|
|
|
|
Basic
|
$0.20
|
|
$0.28
|
|
$1.37
|
|
$1.34
|
|
Diluted
|
0.19
|
|
0.26
|
|
1.26
|
|
1.21
|
|
|
|
|
|
|
|
|
|
ADSs used in
calculating net income per ADS
|
|
|
|
|
|
|
|
|
Basic
|
80,011,219
|
|
81,426,262
|
|
79,957,924
|
|
81,128,340
|
|
Diluted
|
82,635,316
|
|
86,179,669
|
|
91,178,991
|
|
94,233,029
|
|
ADSs used in
calculating Non-GAAP net income per ADS
|
|
|
|
|
|
|
|
|
Basic
|
80,011,219
|
|
81,426,262
|
|
79,957,924
|
|
81,128,340
|
|
Diluted
|
82,635,316
|
|
94,929,536
|
|
91,178,991
|
|
94,233,029
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tal-education-group-announces-unaudited-financial-results-for-the-third-fiscal-quarter-ended-november-30-2016-300393416.html
SOURCE TAL Education Group