- Quarterly Results:
Net Revenues up by
80.7% Year-Over-Year
Income from Operations up by 160.9%
Year-Over-Year
Non-GAAP Income from Operations up
by 113.2% Year-Over-Year
Total Student Enrollments up
by 69.6%
Year-Over-Year
- Fiscal Year Results:
Net Revenues
up by
68.3%
Income from Operations
up by
58.2%
Non-GAAP Income
from Operations up
by
53.9%
BEIJING,
April 27, 2017 /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 2 8 ,
2017.
Highlights for the
Fourth Quarter of Fiscal Year
2017
-- Net revenues increased
by 80.7% year-over-year to US$316.3 million
from US$175.0 million in the
same period of the prior year.
-- Income from operations
increased by 160.9% to
US$43.4 million from
US$16.6 million in the same period of the
prior year.
-- Non-GAAP income from
operations increased by
113.2% to US$53.8
million from US$25.2 million in
the same period of the prior year.
-- Net income attributable to TAL
increased by 196.3% to
US$32.2 million
from US$10.9 million in the same
period of the prior year.
-- Non-GAAP net income
attributable to TAL, which excluded share-based
compensation expenses, was US$42.6
million, compared to US$19.5 million in the same period of the prior
year.
-- Basic and diluted net income
per American Depositary Share
("ADS") were US$0.39 and US$0.36, respectively. Non-GAAP basic and
diluted net income per ADS, which excluded
share-based compensation expenses, were
US$0.52 and US$0.47, respectively. Each ADS
represents two Class A common shares.
-- Cash, cash equivalents, term deposits and
short-term investments totaled US$699.7
million as of February 28,
2017, compared to US$478.8
million as of February 29,
2016.
-- Total student enrollments increased
by 69.6% year-over-year to
approximately 1,336,600 from approximately 788,320 in
the same period of the prior year.
-- Total physical
network increased from 474 in 27 cities as of
November 30, 2016 to 507 learning
centers in 30 cities as of February 28,
2017.
Highlights for the Fiscal Year Ended February
28,
2017
-- Net revenues increased
by 68.3% year-over-year to
US$1,043.1 million from
US$619.9 million in fiscal year
2016.
-- Income from operations increased by
58.2% to US$134.6
million from US$85.1 million in
fiscal year 2016.
-- Non-GAAP income from operations increased
by 53.9% to US$170.7
million from US$110.9 million
in fiscal year
2016.
-- Net income attributable to TAL increased
by 11.6% year-over-year to
US$114.8 million from
US$102.9 million in
fiscal year 2016.
-- Non-GAAP net income
attributable to TAL, which excluded share-based
compensation expenses, increased by
17.2% year-over-year to
US$150.9 million from
US$128.7 million in
fiscal year 2016.
-- Basic and diluted net income per ADS were
US$1.41 and US$1.30, respectively. Non-GAAP basic and diluted
net income per ADS, excluding share-based compensation expenses,
were US$1.86 and US$1.68, respectively.
-- Total student enrollments in fiscal year
2017 increased by 70.3% year-over-year to approximately 3,934,720
from approximately 2,309,830 in fiscal year 2016.
-- Total physical network
increased from 363 learning centers in 25 cities as of
February 29, 2016
to 507 learning centers
in 30 cities as of February 28, 2017.
Financial and Operating Data——Fourth Quarter and Fiscal
Year 2017
(In US$ thousands, except per ADS data, student
enrollments and percentages)
|
Three Months Ended
|
|
February 29/28,
|
|
2016
|
2017
|
Pct. Change
|
Net revenues
|
175,049
|
316,331
|
80.7%
|
Net income attributable to TAL
|
10,859
|
32,179
|
196.3%
|
Non-GAAP net income attributable to
TAL
|
19,455
|
42,564
|
118.8%
|
Operating income
|
16,647
|
43,430
|
160.9%
|
Non-GAAP operating income
|
25,243
|
53,815
|
113.2%
|
Net income per ADS attributable to
TAL – basic
|
0.14
|
0.39
|
191.4%
|
Net income per ADS attributable to
TAL – diluted
|
0.13
|
0.36
|
177.3%
|
Non-GAAP net income per ADS
attributable to TAL – basic
|
0.24
|
0.52
|
115.1%
|
Non-GAAP net income per ADS
attributable to TAL – diluted
|
0.23
|
0.47
|
103.3%
|
Total student enrollments in small
class, one-on-one, and online courses
|
788,320
|
1,336,600
|
69.6%
|
|
Fiscal Year Ended
|
|
February 29/28,
|
|
2016
|
2017
|
Pct. Change
|
Net revenues
|
619,949
|
1,043,100
|
68.3%
|
Net income attributable to TAL
|
102,879
|
114,781
|
11.6%
|
Non-GAAP net income attributable to
TAL
|
128,726
|
150,896
|
17.2%
|
Operating income
|
85,052
|
134,594
|
58.2%
|
Non-GAAP operating income
|
110,899
|
170,710
|
53.9%
|
Net income per ADS attributable to
TAL – basic
|
1.29
|
1.41
|
9.9%
|
Net income per ADS attributable to
TAL – diluted
|
1.21
|
1.30
|
7.6%
|
Non-GAAP net income per ADS
attributable to TAL – basic
|
1.61
|
1.86
|
15.5%
|
Non-GAAP net income per ADS
attributable to TAL – diluted
|
1.49
|
1.68
|
12.9%
|
Total student enrollments in small
class, one-on-one, and online courses
|
2,309,830
|
3,934,720
|
70.3%
|
"Fiscal year 2017 was another year of progress for TAL. We
delivered solid financial and operational results driven by robust
enrollment growth mostly through the continued expansion of our
small class classrooms, as well as additional contributions from
our newly acquired businesses," stated Mr. Rong Luo, TAL's Chief
Financial Officer. "Fourth quarter top-and-bottom-line results
reflected our ability to harvest from the classroom capacity
expansion and teacher recruitment efforts during the first half of
the fiscal year.
"As we look ahead, well-paced strategic expansion of our
learning center network through the addition of new classrooms and
entry into new cities will remain a key part of our growth
momentum," commented Mr. Rong Luo. "We are committed to investing
in new technologies and courses to advance our education
initiatives. With solid business execution and strong market
demand, we believe we are in good shape to continue our performance
and deliver long-term value for all our stakeholders."
Financial Results for the
Fourth Quarter of Fiscal Year
2017
Net Revenues
In the fourth quarter of fiscal
year 2017, TAL reported net revenues of
US$316.3 million, representing an
80.7% increase from US$175.0
million in the fourth quarter of
fiscal year 2016. The increase was mainly driven by an
increase in total student enrollments,
which increased by
69.6% to approximately
1,336,600 from approximately
788,320 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 fourth quarter of fiscal
year 2017, operating costs and expenses were
US$272.9 million, a
72.2% increase from US$158.5
million in the fourth quarter of
fiscal year 2016. Non-GAAP operating costs and expenses, which
excluded share-based compensation expenses, were
US$262.5 million, a
75.2% increase from US$149.9
million in the fourth quarter of
fiscal year 2016.
Cost of revenues increased by
78.1% to US$158.1
million, from US$88.8 million in
the fourth 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 acquisitions of Firstleap and Beijing
Shunshun Bida Information Consulting Co., Ltd.
Non-GAAP cost of revenues, which excluded share-based
compensation expenses, increased by 78.1%
to US$158.0 million from
US$88.8 million in the
fourth quarter of fiscal year 2016.
Selling and marketing expenses increased by
70.5% to US$38.0
million from US$22.3 million in
the fourth quarter of fiscal year 2016.
Non-GAAP selling and marketing expenses, which excluded share-based
compensation expenses, increased by 72.3%
to US$37.0 million from
US$21.5 million in the
fourth quarter of fiscal year 2016. The increase
in selling and marketing expenses in the fourth
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
62.0% to US$76.8
million from US$47.4 million in
the fourth 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, as
well as an increase in rental cost. Non-GAAP general
and administrative expenses, which excluded share-based
compensation expenses, increased by 70.3%
to US$67.5 million from
US$39.6 million in the
fourth quarter of fiscal year 2016.
Total share-based compensation expenses allocated to the
related operating costs and expenses increased by
20.8% to US$10.4
million in the fourth quarter of
fiscal year 2017 from US$8.6 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 83.4%
to US$158.2 million from
US$86.3 million in the
fourth quarter of fiscal year 2016.
Income from Operations
Income from operations increased
by 160.9% to US$43.4
million from US$16.6 million in
the fourth quarter of fiscal year 2016.
Non-GAAP income from operations, which excluded share-based
compensation expenses, increased
by 113.2% to US$53.8
million from US$25.2 million in
the fourth quarter of fiscal year
2016.
Other income
/
(expenses)
Other expenses was
US$52.7 thousand in the
fourth quarter of fiscal year 2017, compared to
other income of US$0.2 million in the
fourth quarter of fiscal year 2016.
Impairment loss on long-term
investments
Impairment loss on long-term investments was
US$2.1 million, mainly
due to the other-than-temporary declines in the value of long-term
investments in several investees.
Net Income Attributable to TAL Education
Group
Net income attributable to TAL
increased by 196.3% to
US$32.2 million from
US$10.9 million in the
fourth quarter of fiscal year
2016. Non-GAAP net income attributable to
TAL, which excluded share-based compensation expenses,
increased by 118.8% to
US$42.6 million from
US$19.5 million in the
fourth quarter of fiscal year 2016.
Basic and Diluted Net Income per
ADS
Basic and diluted net income per ADS were
US$0.39 and US$0.36,
respectively, in the fourth
quarter of fiscal year 2017. Non-GAAP basic and
Non-GAAP diluted net income per ADS, which excluded share-based
compensation expenses, were US$0.52 and
US$0.47, respectively.
Capital Expenditures
Capital expenditures for the fourth
quarter of fiscal year 2017 were US$22.4
million, an increase of US$10.8
million from US$11.6 million in
the fourth 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 February
28, 2017, the Company had
US$470.2 million of cash and cash
equivalents and US$229.5 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 February
28, 2017, the Company's deferred
revenue balance was US$518.9 million,
compared to US$289.3 million as of
February 29, 2016, representing a
year-over-year increase of approximately
79.4%, which primarily consisted of
the tuition collected in advance for the spring semester of Xueersi
Peiyou small classes, as well as the deferred revenue related to
the acquired businesses.
Financial Results for the Fiscal Year Ended
February
28,
2017
Net Revenues
For fiscal year 2017, TAL reported net revenues of
US$1,043.1 million, representing a
68.3% increase from US$619.9
million in fiscal year 2016. The increase was mainly driven
by an increase in total student
enrollments. Total student enrollments increased
by 70.3% to approximately
3,934,720 from approximately
2,309,830 in the prior year. The increase in
total student enrollments resulted
primarily from increases of enrollments in the
small class offerings and online courses.
Operating Costs and Expenses
In fiscal year 2017, operating costs and expenses were
US$911.6 million, a
69.4% increase from US$538.2
million in fiscal year 2016. Non-GAAP operating costs and
expenses, which excluded share-based compensation expenses, were
US$875.5 million, a
70.9% increase from US$512.4
million in fiscal year 2016.
Cost of revenues increased by
72.0% to US$522.3
million from US$303.6 million in
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 72.0% to US$522.2
million from US$303.6 million in
fiscal year 2016.
Selling and marketing expenses increased by
71.3% to US$126.0
million from US$73.6 million in
fiscal year 2016. Non-GAAP selling and marketing expenses, which
excluded share-based compensation expenses, increased by
72.5% to US$122.6
million from US$71.1 million in
fiscal year 2016. The increase in selling and marketing expenses in
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
63.5% to US$263.3
million from US$161.0 million in
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 67.5% to
US$230.7 million from
US$137.7 million in fiscal year
2016.
Total share-based compensation expenses allocated to the
related operating costs and expenses increased by
39.7% to US$36.1
million in fiscal year 2017 from US$25.8
million in 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 64.6%
to US$520.8 million from
US$316.3 million in fiscal year
2016.
Income from Operations
Income from operations increased by
58.2% to US$134.6
million from US$85.1 million in
fiscal year 2016. Non-GAAP income from operations, which excluded
share-based compensation expenses, increased by
53.9% to US$170.7
million from US$110.9 million in
fiscal year 2016.
Other income / (expenses)
Other income was
US$23.1 million
for fiscal year 2017, compared to other expense
of US$2.5 million for
fiscal year 2016. Other income in the 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
US$8.1 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 components was nil for the fiscal
year 2017, compared to a gain of US$50.4
million in the 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$36.2
million in fiscal year 2017, compared to
US$33.5 million in fiscal year
2016.
Net Income Attributable to TAL Education
Group
Net income attributable to TAL increased by
11.6% to US$114.8
million from US$102.9 million in
fiscal year 2016. Non-GAAP net income attributable to TAL, which
excluded share-based compensation expenses, increased by
17.2% to US$150.9
million from US$128.7 million in
fiscal year 2016.
Basic and Diluted Net Income per
ADS
Basic and diluted net income per ADS were
US$1.41 and
US$1.30, respectively, in fiscal year
2017. Non-GAAP basic and Non-GAAP diluted net income per ADS, which
excluded share-based compensation expenses, were
US$1.86 and
US$1.68, respectively.
Capital Expenditures
Capital expenditures for fiscal year 2017 were
US$71.1 million, an increase of
US$36.0 million from
US$35.1 million in 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.
Declaration of Special Cash Dividend
TAL's board of directors has considered and approved the
declaration and payment of a special cash dividend to our
shareholders out of TAL's cash balances in an amount of
US$0.25 per common share
(US$0.50 per ADS), representing an
aggregate dividend payment of approximately US$41.2 million to all shareholders of the
Company.
The declaration and payment of the special cash dividend
highlights TAL's strong cash position and cash flow generating
ability, which has enabled the Company to return surplus capital to
shareholders while still investing in the business.
The special cash dividend will be paid on or about
May 25, 2017 to the Company's
shareholders of record as of the close of business on May 11, 2017.
Business Outlook
Based on the Company's current estimates, total net
revenues for the first quarter of fiscal year 2018 are expected to
grow 65% to 67% 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 first quarter of fiscal year 2018 to be between
US$302.4 million and US$306.3
million, representing an increase of 55% to 57% 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 fourth fiscal
quarter and the fiscal year ended
February
28, 2017 at 8:00 a.m. Eastern Time on April
27, 2017 (8:00
p.m. Beijing time on
April 27, 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
|
- International toll:
|
+65-6713-5090
|
Conference ID:
|
92956367
|
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 5, 2017 (9:59p.m. Beijing
time, May 5, 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
|
- International
toll:
|
+61-2-8199-0299
|
Conference ID:
|
92956367
|
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 2018, 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 507 physical learning centers as
of February
28, 2017, located in
30 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, Guiyang, Xiamen, Lanzhou and Dalian. 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:
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
|
|
As
of
|
February 29,
|
February
28,
|
2016
|
2017
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$434,042,036
|
|
$470,217,004
|
Term
deposits
|
17,292,636
|
|
-
|
Restricted
cash-current
|
1,083,787
|
|
2,732,559
|
Short-term
investments
|
27,470,431
|
|
229,456,397
|
Inventory
|
600,441
|
|
2,823,039
|
Amounts due
from related parties-current
|
2,594,430
|
|
3,424,285
|
Deferred tax
assets-current
|
738,406
|
|
-
|
Income tax
receivable
|
-
|
|
145,162
|
Prepaid
expenses and other current assets
|
32,037,407
|
|
160,222,823
|
Total current
assets
|
515,859,574
|
|
869,021,269
|
Restricted
cash-non-current
|
3,881,858
|
|
5,660,713
|
Property and
equipment, net
|
114,629,683
|
|
154,306,718
|
Deferred tax
assets-non-current
|
6,654,778
|
|
16,188,301
|
Rental
deposit
|
17,114,552
|
|
32,659,360
|
Intangible
assets, net
|
15,194,421
|
|
37,966,808
|
Goodwill
|
87,022,517
|
|
267,162,685
|
Amounts due
from related parties-non-current
|
1,342,999
|
|
-
|
Long-term
investments
|
274,356,960
|
|
347,732,444
|
Long-term
prepayments and other non-current assets
|
25,321,691
|
|
96,107,917
|
Total
assets
|
$1,061,379,033
|
|
$1,826,806,215
|
|
|
|
|
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 20,905,226 as of February 29,
2016, and February 28, 2017, respectively)
|
$10,404,047
|
|
$22,637,199
|
Deferred
revenue-current (including deferred revenue-
current of the consolidated VIEs without recourse to
TAL Education Group of 260,137,064 and 465,944,822
as of February 29, 2016,and February 28, 2017,
respectively)
|
280,934,750
|
|
504,147,032
|
Amounts due to
related parties-current (including amounts
due to related parties-current of the consolidated VIEs
without recourse to TAL Education Group of 4,277,896
and
192,785 as of February 29, 2016, and February 28, 2017,
respectively)
|
4,277,896
|
|
3,042,785
|
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 90,834,954 as of February 29,
2016, and February 28, 2017, respectively)
|
70,267,551
|
|
116,830,290
|
Income tax payable
(including income tax payable of the
consolidated VIEs without recourse to TAL Education
Group of 15,525,069 and 15,204,900 as of February 29,
2016, and February 28, 2017, respectively)
|
17,187,453
|
|
20,483,037
|
Deferred tax
liabilities-current (including deferred tax
liabilities-current of the consolidated VIEs without
recourse to TAL Education Group of 57,230 and nil as
of
February 29, 2016, and February 28, 2017,
respectively)
|
91,730
|
|
-
|
Total current
liabilities
|
383,163,427
|
|
667,140,343
|
Deferred
revenue-non-current (including deferred revenue-
non-current of the consolidated VIEs without recourse to
TAL Education Group of 8,346,457 and 14,726,473 as of
February 29, 2016, and February 28, 2017,
respectively)
|
8,346,457
|
|
14,726,473
|
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 nil as of February 29, 2016, and
February
28, 2017, respectively)
|
-
|
|
2,840,000
|
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
13,063,488 as of February 29, 2016, and February 28,
2017, respectively)
|
1,304,361
|
|
13,185,886
|
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 February 28,
2017, respectively)
|
227,827,301
|
|
225,148,918
|
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 February 28, 2017,
respectively)
|
-
|
|
225,000,000
|
|
|
Total
liabilities
|
620,641,546
|
|
1,148,041,620
|
TAL Education
Group Shareholders' Equity
|
|
|
|
Class A common
shares
|
90,310
|
|
93,131
|
Class B common
shares
|
71,456
|
|
71,456
|
Additional paid-in
capital
|
108,404,873
|
|
141,968,264
|
Statutory
reserve
|
22,981,900
|
|
28,407,421
|
Retained
earnings
|
306,381,011
|
|
415,736,658
|
Accumulated other
comprehensive (loss)/income
|
(949,647)
|
|
55,868,240
|
Total TAL
Education Group's equity
|
436,979,903
|
|
642,145,170
|
Noncontrolling
interest
|
3,757,584
|
|
36,619,425
|
Total
equity
|
440,737,487
|
|
678,764,595
|
Total liabilities
and equity
|
$1,061,379,033
|
|
$1,826,806,215
|
|
|
|
|
|
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
|
|
For the Fiscal
Year Ended
|
February
29/28,
|
February
29/28,
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
Net
revenues
|
$175,048,674
|
|
$316,330,780
|
|
$619,948,777
|
|
$1,043,099,655
|
Cost of revenues
(note 1)
|
88,774,459
|
|
158,092,034
|
|
303,634,829
|
|
522,326,988
|
Gross
profit
|
86,274,215
|
|
158,238,746
|
|
316,313,948
|
|
520,772,667
|
Operating expenses
(note 1)
|
|
|
|
|
|
|
|
Selling and
marketing
|
22,295,986
|
|
38,025,565
|
|
73,567,617
|
|
126,005,365
|
General and
administrative
|
47,393,529
|
|
76,797,811
|
|
161,021,637
|
|
263,286,710
|
Total operating
expenses
|
69,689,515
|
|
114,823,376
|
|
234,589,254
|
|
389,292,075
|
Government
subsidies
|
62,535
|
|
14,783
|
|
3,327,169
|
|
3,113,877
|
Income from
operations
|
16,647,235
|
|
43,430,153
|
|
85,051,863
|
|
134,594,469
|
Interest
income
|
4,184,001
|
|
6,411,619
|
|
17,732,879
|
|
18,133,229
|
Interest
expense
|
(1,886,730)
|
|
(4,797,814)
|
|
(7,499,323)
|
|
(13,144,561)
|
Other
income/(expenses)
|
247,820
|
|
(52,680)
|
|
(2,522,253)
|
|
23,072,718
|
Gain from disposal of
components
|
-
|
|
-
|
|
50,377,126
|
|
-
|
Gain on fair value
change from
long-term investments
|
134,852
|
|
-
|
|
1,265,852
|
|
-
|
Impairment loss on
long-term
investments
|
-
|
|
(2,093,599)
|
|
(7,503,944)
|
|
(8,074,891)
|
Income before
provision for
income tax and loss from
equity method investments
|
19,327,178
|
|
42,897,679
|
|
136,902,200
|
|
154,580,964
|
Provision for income
tax
|
(8,229,596)
|
|
(11,036,004)
|
|
(33,482,744)
|
|
(36,164,533)
|
Loss from equity
method
investments
|
(342,325)
|
|
(1,834,212)
|
|
(663,256)
|
|
(8,025,431)
|
Net
income
|
10,755,257
|
|
30,027,463
|
|
102,756,200
|
|
110,391,000
|
Add: Net loss
attributable to
noncontrolling interest
|
103,973
|
|
2,151,831
|
|
122,318
|
|
4,390,168
|
Total net income
attributable
to TAL Education Group
|
$10,859,230
|
|
$32,179,294
|
|
$102,878,518
|
|
$114,781,168
|
|
|
|
|
|
|
|
|
Net income per
common share
|
|
|
|
|
|
|
|
Basic
|
$0.07
|
|
$0.20
|
|
$0.64
|
|
$0.71
|
Diluted
|
0.06
|
|
0.18
|
|
0.60
|
|
0.65
|
Net income per ADS
(note 2)
|
|
|
|
|
|
|
|
Basic
|
$0.14
|
|
$0.39
|
|
$1.29
|
|
$1.41
|
Diluted
|
0.13
|
|
0.36
|
|
1.21
|
|
1.30
|
|
|
|
|
|
|
|
|
Weighted average
shares used in
calculating net income per
common share
|
Basic
|
160,693,380
|
|
163,440,145
|
|
160,109,169
|
|
162,548,494
|
Diluted
|
168,185,267
|
|
190,130,758
|
|
183,056,255
|
|
188,508,419
|
|
|
|
|
|
|
|
|
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
29/28,
|
Ended February
29/28,
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$9,414
|
|
$43,008
|
|
$42,679
|
|
$111,001
|
Selling and
marketing
|
819,275
|
|
1,016,926
|
|
2,479,864
|
|
3,367,840
|
General and
administrative
|
7,766,622
|
|
9,325,033
|
|
23,324,954
|
|
32,636,359
|
Total
|
$8,595,311
|
|
$10,384,967
|
|
$25,847,497
|
|
$36,115,200
|
|
|
|
|
|
|
|
|
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
February 29/28,
|
|
For the Fiscal Year Ended
February 29/28,
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
10,755,257
|
|
$
30,027,463
|
|
$
102,756,200
|
|
$
110,391,000
|
|
Other comprehensive (loss)/income, net
of tax
|
(4,589,245)
|
|
3,632,821
|
|
(5,116,019)
|
|
55,595,116
|
|
Comprehensive income
|
6,166,012
|
|
33,660,284
|
|
97,640,181
|
|
165,986,116
|
|
Add: Comprehensive loss
attributable to
noncontrolling interest
|
96,926
|
|
1,910,200
|
|
120,142
|
|
5,612,939
|
|
Comprehensive income
attributable to TAL
Education Group
|
$ 6,262,938
|
|
$
35,570,484
|
|
$ 97,760,323
|
|
$
171,599,055
|
|
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 February 29/28,
|
|
For the Fiscal Year
Ended February
29/28,
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
|
|
|
|
|
Cost of revenues
|
$88,774,459
|
|
$
158,092,034
|
|
$303,634,829
|
|
$
522,326,988
|
Share-based compensation
expense in cost of revenues
|
9,414
|
|
43,008
|
|
42,679
|
|
111,001
|
Non-GAAP cost of revenues
|
88,765,045
|
|
158,049,026
|
|
303,592,150
|
|
522,215,987
|
|
|
|
|
|
|
|
|
Selling and marketing expenses
|
22,295,986
|
|
38,025,565
|
|
73,567,617
|
|
126,005,365
|
Share-based compensation
expense in selling and marketing
expenses
|
819,275
|
|
1,016,926
|
|
2,479,864
|
|
3,367,840
|
Non-GAAP selling and
marketing expenses
|
21,476,711
|
|
37,008,639
|
|
71,087,753
|
|
122,637,525
|
General and administrative
expenses
|
47,393,529
|
|
76,797,811
|
|
161,021,637
|
|
263,286,710
|
Share-based compensation
expense in general and
administrative expenses
|
7,766,622
|
|
9,325,033
|
|
23,324,954
|
|
32,636,359
|
Non-GAAP general and
administrative expenses
|
39,626,907
|
|
67,472,778
|
|
137,696,683
|
|
230,650,351
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
158,463,974
|
|
272,915,410
|
|
538,224,083
|
|
911,619,063
|
Share-based compensation
expense in operating costs and
expenses
|
8,595,311
|
|
10,384,967
|
|
25,847,497
|
|
36,115,200
|
Non-GAAP operating costs and
expenses
|
149,868,663
|
|
262,530,443
|
|
512,376,586
|
|
875,503,863
|
|
|
|
|
|
|
|
|
Income from operations
|
16,647,235
|
|
43,430,153
|
|
85,051,863
|
|
134,594,469
|
Share based compensation expenses
|
8,595,311
|
|
10,384,967
|
|
25,847,497
|
|
36,115,200
|
Non-GAAP income from
operations
|
25,242,546
|
|
53,815,120
|
|
110,899,360
|
|
170,709,669
|
|
|
|
|
|
|
|
|
Net income attributable to TAL
Education Group
|
10,859,230
|
|
32,179,294
|
|
102,878,518
|
|
114,781,168
|
Share based compensation
expenses
|
8,595,311
|
|
10,384,967
|
|
25,847,497
|
|
36,115,200
|
Non-GAAP net income
attributable to TAL Education
Group
|
$
19,454,541
|
|
$
42,564,261
|
|
$
128,726,015
|
|
$
150,896,368
|
Net income per ADS
|
|
|
|
|
|
|
|
Basic
|
$0.14
|
|
$ 0.39
|
|
$1.29
|
|
$ 1.41
|
Diluted
|
0.13
|
|
0.36
|
|
1.21
|
|
1.30
|
Non-GAAP net income per
ADS
|
|
|
|
|
|
|
|
Basic
|
$0.24
|
|
$ 0.52
|
|
$ 1.61
|
|
$ 1.86
|
Diluted
|
0.23
|
|
0.47
|
|
1.49
|
|
1.68
|
|
|
|
|
|
|
|
|
ADSs used in calculating net
income per ADS
|
|
|
|
|
|
|
|
Basic
|
80,346,690
|
|
81,720,072
|
|
80,054,585
|
|
81,274,247
|
Diluted
|
84,092,634
|
|
95,065,379
|
|
91,528,128
|
|
94,254,210
|
ADSs used in
calculating Non-GAAP net income per ADS
|
|
|
|
|
|
|
|
Basic
|
80,346,690
|
|
81,720,072
|
|
80,054,585
|
|
81,274,247
|
Diluted
|
92,842,539
|
|
95,065,379
|
|
91,528,128
|
|
94,254,210
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tal-education-group-announces-unaudited-financial-results-for-the-fourth-fiscal-quarter-and-the-fiscal-year-2017-and-declares-a-special-cash-dividend-300446993.html
SOURCE TAL Education Group