Quarterly Net Revenues Increased by 23.2%
Year-Over-Year
Quarterly Student Enrollments Increased by
36.9% Year-Over-Year
Quarterly Operating Income Increased
by 39.7% Year-Over-Year
Fiscal Year Net Revenues
Increased by 21.7% Year-Over-Year
Fiscal Year Student
Enrollments Increased by 33.3% Year-Over-Year
Fiscal
Year Operating Income Increased by 31.8% Year-Over-Year
BEIJING, July 25, 2017 /PRNewswire/ -- New Oriental
Education and Technology Group Inc. (the "Company" or "New
Oriental") (NYSE: EDU), the largest provider of private educational
services in China, today announced
its unaudited financial results for the fourth fiscal quarter and
fiscal year ended May 31,
2017.
Financial Highlights for the Fourth Fiscal Quarter Ended
May 31, 2017
- Total net revenues increased by 23.2% year-over-year to
US$486.4 million for the fourth
fiscal quarter of 2017.
- Operating income increased by 39.7% year-over-year to
US$51.8 million for the fourth fiscal
quarter of 2017.
- Net income attributable to New Oriental increased by 31.9%
year-over-year to US$55.4 million for
the fourth fiscal quarter of 2017.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
4Q
FY2017
|
4Q
FY2016
|
% of
change
|
Net
revenues
|
486,353
|
394,865
|
23.2%
|
Operating
income
|
51,836
|
37,093
|
39.7%
|
Non-GAAP operating
income (2)(3)
|
60,808
|
40,725
|
49.3%
|
Net income
attributable to New Oriental
|
55,416
|
42,016
|
31.9%
|
Non-GAAP net income
attributable to New Oriental (2)(3)
|
64,388
|
45,648
|
41.1%
|
Net income per ADS
attributable to New Oriental - basic
|
0.35
|
0.27
|
31.3%
|
Net income per ADS
attributable to New Oriental - diluted
|
0.35
|
0.27
|
31.3%
|
Non-GAAP net income
per ADS attributable to New Oriental
- basic(3)(4)
|
0.41
|
0.29
|
40.4%
|
Non-GAAP net income
per ADS attributable to New Oriental
- diluted(3)(4)
|
0.41
|
0.29
|
40.5%
|
(in thousands US$,
except per ADS(1) data)
|
FY2017
|
FY2016
|
% of
change
|
Net
revenues
|
1,799,509
|
1,478,348
|
21.7%
|
Operating
income
|
262,149
|
198,837
|
31.8%
|
Non-GAAP operating
income(2)(3)
|
282,436
|
215,647
|
31.0%
|
Net income
attributable to New Oriental
|
274,457
|
224,884
|
22.0%
|
Non-GAAP net income
attributable to New Oriental(2)(3)
|
294,744
|
241,694
|
21.9%
|
Net income per ADS
attributable to New Oriental - basic
|
1.74
|
1.43
|
21.4%
|
Net income per ADS
attributable to New Oriental - diluted
|
1.74
|
1.43
|
21.6%
|
Non-GAAP net income
per ADS attributable to New Oriental
- basic(3)(4)
|
1.87
|
1.54
|
21.4%
|
Non-GAAP net income
per ADS attributable to New Oriental
- diluted(3)(4)
|
1.87
|
1.54
|
21.5%
|
(1)
|
Each ADS represents
one common share.
|
(2)
|
GAAP represents
Generally Accepted Accounting Principles in the United States of
America.
|
(3)
|
New Oriental provides
net income attributable to New Oriental, operating income and net
income per ADS attributable to New Oriental on a non-GAAP basis
that excludes share-based compensation expenses to provide
supplemental information regarding its operating performance. For
more information on these non-GAAP financial measures, please see
the section captioned "About Non-GAAP Financial Measures" and the
tables captioned "Reconciliations of Non-GAAP Measures to the Most
Comparable GAAP Measures" set forth at the end of this
release.
|
(4)
|
The Non-GAAP net
income per ADS is computed using Non-GAAP net income and the same
number of shares and ADSs used in GAAP basic and diluted EPS
calculation.
|
Operating Highlights for the Fourth Fiscal Quarter Ended
May 31, 2017
- Total student enrollments in academic subjects tutoring and
test preparation courses increased by 36.9% year-over-year to
approximately 1,420,300 for the fourth fiscal quarter of 2017.
- The total number of schools and learning centers was 855 as of
May 31, 2017, an increase of 107
compared to 748 as of May 31, 2016,
and an increase of 52 compared to 803 as of February 28, 2017. The total number of schools
was 77 as of May 31, 2017.
Michael Yu, New Oriental's
Executive Chairman, commented, "We are pleased to close fiscal year
2017 with a set of solid financial results. In the fourth quarter,
we recorded a top line growth of 23.2%, or 30.5% if computed in
Renminbi. Student enrollments were up approximately 37% during this
quarter, which was driven by the continued momentum of our K-12
after-school tutoring business with enrollment growth of
approximately 51% year-over-year. For the full fiscal year, net
revenues grew by 21.7%, or 29.1% if computed in Renminbi, with
operating income up by 31.8% and net income up by 22%. K-12
after-school tutoring business, our key revenue driver, achieved
approximately 44.2% increase in revenue if computed in Renminbi in
fiscal year 2017, contributing 55% of total revenues. In
particular, our customer retention rate and acquisition efficiency
have consistently improved through our online and offline (O2O)
integrated education system, which includes U-Can Visible Progress
Teaching system and revamped POP Kids program. If computed in
Renminbi, our POP Kids program achieved revenue growth of over 55%
and enrollment growth of 49% for the fiscal year 2017. Meanwhile,
our U-Can business recorded revenue growth of approximately 40% and
enrollment growth of 45% for the fiscal year."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "During the fiscal year, we
continue to focus firmly on executing our "Optimize the Market"
strategy. In order to maintain a healthy balance between top line
and bottom line growth, we moderately accelerated our capacity
expansion in some cities with strong growing momentum supported by
efficient operations in the fourth quarter of fiscal year 2017.
During the quarter, we added a net of 47 learning centers in around
30 existing cities, opened two new schools and a new learning
center in the city of Zhangzhou and Nanyang, and rolled out two
dual-teacher model schools in the city of Anyang and Handan. For fiscal year 2017, we opened a
total of four new schools, three new learning centers and six
dual-teacher model schools in ten new cities and added a net of 93
learning centers and one kindergarten in the existing cities.
Furthermore, we achieved impactful progress in building our O2O
integrated education ecosystem. The O2O system for the K-12
business became a major driver of our accelerated revenue and
enrollment growth in fiscal year 2017. We are in the process of
launching the O2O standardized teaching system for our overseas
test preparation business, such as IELTS, TOEFL and SAT programs,
in some of the large cities in China. Lastly, our pure online education
platform, Koolearn.com, recorded revenue growth of approximately
31%, or 39% if computed in Renminbi for the whole fiscal year, with
registered users up by over 29% and paid users up by approximately
56%."
Stephen Zhihui Yang, New
Oriental's Chief Financial Officer, commented, "The encouraging
financial performance of this fiscal year was supported by our
continued efforts in improving utilization of facilities and
enhancing cost control. For fiscal year 2017, operating margin
increased 120 basis points. Moving forward into fiscal year
2018, we will continue to execute the "Optimize the Market"
strategy to maintain strong growth momentum. In particular,
we aim to enter into two to four new cities and add approximately
10-15% new teaching facilitates mainly for our K-12 after-school
tutoring business in existing cities. In addition, we will continue
to expand our businesses into remote areas in China by rolling out our dual-teacher model
schools. We are confident in building sustainable long-term value
for our customers and shareholders."
Declaration of Special Cash Dividend
New Oriental's board of directors has declared a special cash
dividend in the amount of US$0.45 per
ADS/common share. The cash dividend will be paid on October 6, 2017 to shareholders of record at the
close of business on September 6,
2017. The ex-dividend date will be September 1, 2017. The aggregate amount of cash
dividends to be paid is approximately US$70.0 million, which will be funded by surplus
cash on the Company's balance sheet.
Financial Results for the Fourth Fiscal Quarter Ended
May 31, 2017
Net Revenues
For the fourth fiscal quarter of 2017, New Oriental reported net
revenues of US$486.4 million,
representing a 23.2% increase year-over-year. Net revenues from
educational programs and services for the fourth fiscal quarter
were US$407.7 million, representing a
26.5% increase year-over-year. The growth was mainly driven by
increases in student enrollments in K-12 after-school tutoring
courses.
Total student enrollments in academic subjects tutoring and test
preparation courses in the fourth fiscal quarter of 2017 increased
by 36.9% year-over-year to approximately 1,420,300.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$434.5 million, representing a 20.2% increase
year-over-year. Non-GAAP operating costs and expenses for the
quarter, which exclude share-based compensation expenses, were
US$425.5 million, representing an
18.9% increase year-over-year.
- Cost of revenues increased by 21.9% year-over-year to
US$199.3 million, primarily due to
increases in teachers' compensation for more teaching hours.
- Selling and marketing expenses increased by 11.7%
year-over-year to US$66.3 million,
primarily due to increases in brand promotion expenses and selling
and marketing staff's compensation.
- General and administrative expenses for the quarter
increased by 21.8% year-over-year to US$169.0 million. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, were US$160.0 million,
representing an 18.4% increase year-over-year, primarily due to
increased headcount as the Company expanded its network of schools
and learning centers by about 14% year-over-year.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, increased by 147.0% to
US$9.0 million in the fourth fiscal
quarter of 2017.
Operating Income and Operating Margin
Operating income was US$51.8
million, a 39.7% increase from US$37.1 million in the same period of the prior
fiscal year. Non-GAAP income from operations for the quarter was
US$60.8 million, compared to non-GAAP
income from operations of US$40.7
million in the same period of the prior fiscal year.
Operating margin for the quarter was 10.7%, compared to 9.4% in
the same period of the prior fiscal year. Non-GAAP operating
margin, which excludes share-based compensation expenses, for the
quarter was 12.5%, compared to 10.3% in the same period of the
prior fiscal year.
Net Income and EPS
Net income attributable to New Oriental for the quarter was
US$55.4 million, representing a 31.9%
increase from the same period of the prior fiscal year. Basic and
diluted earnings per ADS attributable to New Oriental were
US$0.35 and US$0.35, respectively.
Non-GAAP Net Income and Non-GAAP EPS
Non-GAAP net income attributable to New Oriental for the quarter
was US$64.4 million, representing a
41.1% increase from the same period of the prior fiscal year.
Non-GAAP basic and diluted earnings per ADS attributable to New
Oriental were US$0.41 and
US$0.41, respectively.
Cash Flows
Net operating cash flow for the fourth fiscal quarter of 2017
was approximately US$211.2 million.
Capital expenditures for the quarter were US$26.5 million, which were primarily
attributable to the opening of four new schools and 70 learning
centers and renovations at existing learning centers.
Balance Sheets
As of May 31, 2017, New Oriental
had cash and cash equivalents of US$641.0
million, as compared to US$535.9
million as of February 28,
2017. In addition, the Company had US$195.1 million in term deposits, US$1,312.9 million in short-term investments and
US$16.7 million in long-term
investments due within one year consisting of trusts guaranteed by
a bank and expected to mature within one year from May 31, 2017.
New Oriental's deferred revenue balance, which is cash collected
from registered students for courses and recognized proportionally
as revenue as the instructions are delivered, at the end of the
fourth quarter of fiscal year 2017 was US$866.6 million, an increase of 34.0%, compared
to US$646.9 million at the end of the
fourth quarter of fiscal year 2016.
Financial Results for the Fiscal Year Ended May 31, 2017
For the fiscal year 2017 ended May 31,
2017, New Oriental reported net revenues of US$1,799.5 million, representing a 21.7% increase
year-over-year.
Total student enrollments in academic subjects tutoring and test
preparation courses in the fiscal year 2017 increased by 33.3% to
approximately 4,858,600.
Income from operations for the fiscal year 2017 was US$262.1 million, representing a 31.8% increase
year-over-year. Non-GAAP income from operations for the fiscal year
2017 was US$282.4 million,
representing a 31.0% increase year-over-year.
Operating margin for the fiscal year 2017 was 14.6%, compared to
13.4% for the same period of the prior fiscal year. Non-GAAP
operating margin, which excludes share-based compensation expenses
for the fiscal year 2017, was 15.7%, compared to 14.6% for the same
period of the prior fiscal year.
Net income attributable to New Oriental for the fiscal year 2017
was US$274.5 million, representing a
22.0% increase year-over-year. Basic and diluted net income per ADS
attributable to New Oriental for the fiscal year 2017 amounted to
US$1.74 and US$1.74, respectively.
Non-GAAP net income attributable to New Oriental for the fiscal
year 2017 was US$294.7 million,
representing a 21.9% increase year-over-year. Non-GAAP basic and
diluted net income per ADS attributable to New Oriental for the
fiscal year 2017 amounted to US$1.87
and US$1.87, respectively.
Outlook for First Quarter of Fiscal Year 2018
New Oriental expects total net revenues in the first quarter of
fiscal year 2018 (June 1, 2017 to
August 31, 2017) to be in the range
of US$626.5 million to US$647.3
million, representing year-over-year growth in the range of
17% to 21%.
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 20%
to 24% for the first quarter of fiscal year 2018.
This forecast reflects New Oriental's current and preliminary
view, which is subject to change.
Conference Call Information
New Oriental's management will host an earnings conference call
at 8 AM on July 25, 2017, U.S. Eastern Time (8 PM on July 25,
2017, Beijing/Hong Kong
Time).
Dial-in details for the earnings conference call are as
follows:
US:
|
+1-845-675-0437
|
Hong
Kong:
|
+852-3018-6771
|
UK:
|
+44-20-3621-4779
|
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call. The passcode is "New
Oriental Earnings Call."
A replay of the conference call may be accessed by phone at the
following number until August 2,
2017:
International:
|
+61-2-8199-0299
|
Passcode:
|
38953942
|
Additionally, a live and archived webcast of the conference call
will be available at http://investor.neworiental.org.
About New Oriental
New Oriental is the largest provider of private educational
services in China based on the
number of program offerings, total student enrollments and
geographic presence. New Oriental offers a wide range of
educational programs, services and products consisting primarily of
English and other foreign language training, test preparation
courses for major admissions and assessment tests in the United States, the PRC and Commonwealth
countries, primary and secondary school education, development and
distribution of educational content, software and other technology,
and online education. New Oriental's ADSs, each of which represents
one common share, currently trade on the New York Stock Exchange
under the symbol ''EDU.''
For more information about New Oriental, please visit
http://www.neworiental.org/english/.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the outlook for the third quarter of fiscal year 2017, quotations
from management in this announcement, as well as New Oriental's
strategic and operational plans, contain forward-looking
statements. New Oriental may also make written or oral
forward-looking statements in its reports filed or furnished to the
U.S. Securities and Exchange Commission, in its annual reports to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about New Oriental's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: our ability to attract students without a significant
decrease in course fees; our ability to continue to hire, train and
retain qualified teachers; our ability to maintain and enhance our
"New Oriental" brand; our ability to effectively and efficiently
manage the expansion of our school network and successfully execute
our growth strategy; the outcome of ongoing, or any future,
litigation or arbitration, including those relating to copyright
and other intellectual property rights; competition in the private
education sector in China; changes in our revenues and certain cost
or expense items as a percentage of our revenues; the expected
growth of the Chinese private education market; Chinese
governmental policies relating to private educational services and
providers of such services; health epidemics and other outbreaks in
China; and general economic conditions in China. Further
information regarding these and other risks is included in our
annual report on Form 20-F and other documents filed with the
Securities and Exchange Commission. New Oriental does not undertake
any obligation to update any forward-looking statement, except as
required under applicable law. All information provided in this
press release and in the attachments is as of the date of this
press release, and New Oriental undertakes no duty to update such
information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement New Oriental's consolidated financial results
presented in accordance with GAAP, New Oriental uses the following
measures defined as non-GAAP financial measures by the SEC: net
income excluding share-based compensation expenses, operating
income excluding share-based compensation expenses, operating costs
and expenses excluding share-based compensation expenses, general
and administrative expenses excluding share-based compensation
expenses, operating margin excluding share-based compensation
expenses, and basic and diluted net income per ADS and per share
excluding share-based compensation expenses. The presentation of
these non-GAAP financial measures is not intended to be considered
in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP. For more
information on these non-GAAP financial measures, please see the
tables captioned "Reconciliations of Non-GAAP Measures to the Most
Comparable GAAP Measures" set forth at the end of this release.
New Oriental believes that these non-GAAP financial measures
provide meaningful supplemental information regarding its
performance and liquidity by excluding share-based compensation
expenses that may not be indicative of its operating performance
from a cash perspective. New Oriental believes that both management
and investors benefit from referring to these non-GAAP financial
measures in assessing its performance and when planning and
forecasting future periods. These non-GAAP financial measures also
facilitate management's internal comparisons to New Oriental's
historical performance and liquidity. New Oriental computes its
non-GAAP financial measures using the same consistent method from
quarter to quarter. New Oriental believes these non-GAAP financial
measures are useful to investors in allowing for greater
transparency with respect to supplemental information used by
management in its financial and operational decision making. A
limitation of using these non-GAAP measures is that they exclude
share-based compensation charge that has been and will continue to
be for the foreseeable future a significant recurring expense in
our business. Management compensates for these limitations by
providing specific information regarding the GAAP amounts excluded
from each non-GAAP measure. The accompanying tables have more
details on the reconciliations between GAAP financial measures that
are most directly comparable to non-GAAP financial measures.
Contacts
For investor and media inquiries, please contact:
In China:
Ms. Cara O'Brien
FTI Consulting
Tel: +852-3768-4537
Email: cara.obrien@fticonsulting.com
Ms. Sisi Zhao
New Oriental Education and Technology Group Inc.
Tel: +86-10-6260-5568
Email: zhaosisi@xdf.cn
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
As of May
31
|
|
As of February
28
|
2017
|
|
2017
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
641,018
|
|
535,929
|
Restricted cash,
current
|
44
|
|
56
|
Term
deposits
|
195,085
|
|
183,082
|
Short term
investments
|
1,312,942
|
|
1,251,558
|
Accounts receivable,
net
|
3,343
|
|
3,162
|
Inventory
|
31,742
|
|
28,168
|
Prepaid expenses and
other current assets
|
119,397
|
|
118,916
|
Amounts due from
related parties, current
|
5,948
|
|
5,537
|
Long term investments
due within one year
|
16,743
|
|
-
|
Total current
assets
|
2,326,262
|
|
2,126,408
|
|
|
|
|
Property, plant and
equipment, net
|
282,800
|
|
259,446
|
Land use rights,
net
|
3,668
|
|
3,664
|
Amounts due from
related parties, non-current
|
1,748
|
|
1,819
|
Deferred tax assets,
non-current
|
28,858
|
|
22,932
|
Long term
deposit
|
24,023
|
|
21,505
|
Long term prepaid
rent
|
849
|
|
356
|
Restricted cash,
non-current
|
3,608
|
|
3,679
|
Intangible
assets
|
4,005
|
|
4,347
|
Goodwill
|
14,083
|
|
15,634
|
Long term
investments
|
217,259
|
|
195,397
|
Other non-current
assets
|
17,816
|
|
4,223
|
Total
assets
|
2,924,979
|
|
2,659,410
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
(including accounts payable of the consolidated
VIE without recourse to New Oriental of US$21,382 and
US$24,138 as of February 28, 2017 and May 31, 2017,
respectively)
|
24,258
|
|
21,416
|
Accrued expenses and
other current liabilities (including accrued
expenses and other current liabilities of the consolidated VIE
without recourse to New Oriental of US$196,141 and
US$238,864 as of February 28, 2017 and May 31, 2017,
respectively)
|
260,700
|
|
220,515
|
Income taxes payable
(including income tax payable of the
consolidated VIE without recourse to New Oriental of US$39,085
and US$40,306 as of February 28, 2017 and May 31, 2017,
respectively)
|
51,045
|
|
43,460
|
Amounts due to
related parties (including amounts due to related
parties of the consolidated VIE without recourse to New
Oriental
of US$49 and US$48 as of February 28, 2017 and May 31, 2017,
respectively)
|
48
|
|
49
|
Deferred revenue
(including deferred revenue of the consolidated
VIE without recourse to New Oriental of US$755,623 and
US$833,932 as of February 28, 2017 and May 31, 2017,
respectively)
|
866,630
|
|
760,521
|
|
|
|
|
Total current
liabilities
|
1,202,681
|
|
1,045,961
|
|
|
|
|
Deferred tax
liabilities (including deferred tax liabilities of the
consolidated VIE without recourse to New Oriental of US$2,262
and US$2,174 as of February 28, 2017 and May 31, 2017,
respectively)
|
2,220
|
|
2,311
|
|
|
|
|
Total long-term
liabilities
|
2,220
|
|
2,311
|
|
|
|
|
Total
liabilities
|
1,204,901
|
|
1,048,272
|
|
|
|
|
Noncontrolling
interests
|
39,130
|
|
36,810
|
|
|
|
|
Total New
Oriental Education & Technology Group Inc.
shareholders' equity
|
1,680,948
|
|
1,574,328
|
|
|
|
|
Total
shareholders' equity
|
1,720,078
|
|
1,611,138
|
|
|
|
|
Total liabilities
and shareholders' equity
|
2,924,979
|
|
2,659,410
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
|
For the Three
Months Ended May 31
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
Revenues:
|
|
|
|
Educational programs
and services
|
407,657
|
|
322,212
|
Books and
others
|
78,696
|
|
72,653
|
Total net
revenues
|
486,353
|
|
394,865
|
|
|
|
|
Operating costs
and expenses (note 1):
|
|
|
|
Cost of
revenues
|
199,257
|
|
163,433
|
Selling and
marketing
|
66,307
|
|
59,386
|
General and
administrative
|
168,953
|
|
138,713
|
Total operating
costs and expenses
|
434,517
|
|
361,532
|
Gain on disposal of
subsidiary
|
-
|
|
3,760
|
Operating
Income
|
51,836
|
|
37,093
|
|
|
|
|
Other income,
net
|
18,879
|
|
16,827
|
|
|
|
|
Provision for income
taxes
|
(14,460)
|
|
(10,622)
|
Loss from equity
method investments
|
(346)
|
|
(1,204)
|
Net
income
|
55,909
|
|
42,094
|
|
|
|
|
Net (gain)
attributable to the noncontrolling interests
|
(493)
|
|
(78)
|
|
|
|
|
Net income
attributable to New Oriental Education &
Technology Group Inc.
|
55,416
|
|
42,016
|
|
|
|
|
|
|
|
|
Net income per
share attributable to New Oriental-
Basic
|
0.35
|
|
0.27
|
|
|
|
|
Net income per
share attributable to New Oriental-
Diluted
|
0.35
|
|
0.27
|
|
|
|
|
Net income per ADS
attributable to New Oriental-
Basic (note 2)
|
0.35
|
|
0.27
|
|
|
|
|
Net income per ADS
attributable to New Oriental-
Diluted (note 2)
|
0.35
|
|
0.27
|
|
|
|
|
Other comprehensive
income, net of tax
|
36,102
|
|
15,675
|
Comprehensive
income
|
92,011
|
|
57,769
|
Comprehensive
income attributable to New Oriental
Education & Technology Group Inc.
|
91,864
|
|
56,750
|
Notes:
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the
operating costs and expenses as follows:
|
|
|
|
|
|
For the Three
Months Ended May 31
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
General and
administrative
|
8,972
|
|
3,632
|
Total
|
8,972
|
|
3,632
|
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATION OF
NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP
MEASURES
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
For the Three
Months Ended May 31
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
168,953
|
|
138,713
|
Share-based
compensation expense in general and
administrative expenses
|
8,972
|
|
3,632
|
Non-GAAP general and
administrative
expenses
|
159,981
|
|
135,081
|
|
|
|
|
Total operating costs
and expenses
|
434,517
|
|
361,532
|
Share-based
compensation expenses
|
8,972
|
|
3,632
|
Non-GAAP operating
costs and expenses
|
425,545
|
|
357,900
|
|
|
|
|
Operating
income
|
51,836
|
|
37,093
|
Share-based
compensation expenses
|
8,972
|
|
3,632
|
Non-GAAP operating
income
|
60,808
|
|
40,725
|
|
|
|
|
Operating
margin
|
10.7%
|
|
9.4%
|
Non-GAAP operating
margin
|
12.5%
|
|
10.3%
|
|
|
|
|
Net income
attributable to New Oriental
|
55,416
|
|
42,016
|
Share-based
compensation expenses
|
8,972
|
|
3,632
|
Non-GAAP net
income
|
64,388
|
|
45,648
|
|
|
|
|
Net income per ADS
attributable to New
Oriental- Basic (note 2)
|
0.35
|
|
0.27
|
Net income per ADS
attributable to New
Oriental- Diluted (note 2)
|
0.35
|
|
0.27
|
|
|
|
|
Non-GAAP net income
per ADS attributable
to New Oriental - Basic (note 2)
|
0.41
|
|
0.29
|
Non-GAAP net income
per ADS attributable
to New Oriental - Diluted (note 2)
|
0.41
|
|
0.29
|
|
|
|
|
Weighted average
shares used in calculating
basic net income per ADS (note 2)
|
157,679,354
|
|
156,963,155
|
Weighted average
shares used in calculating
diluted net income per ADS (note 2)
|
158,211,421
|
|
157,536,118
|
|
|
|
|
Non-GAAP income per
share - basic
|
0.41
|
|
0.29
|
Non-GAAP income per
share - diluted
|
0.41
|
|
0.29
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
|
For the Year Ended
May 31
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
Revenues:
|
|
|
|
Educational programs
and services
|
1,608,954
|
|
1,309,339
|
Books and
others
|
190,555
|
|
169,009
|
Total net
revenues
|
1,799,509
|
|
1,478,348
|
|
|
|
|
Operating costs
and expenses (note 1):
|
|
|
|
Cost of
revenues
|
749,586
|
|
614,364
|
Selling and
marketing
|
232,826
|
|
197,897
|
General and
administrative
|
554,948
|
|
471,010
|
Total operating
costs and expenses
|
1,537,360
|
|
1,283,271
|
Gain on disposal of a
subsidiary
|
-
|
|
3,760
|
Operating
income
|
262,149
|
|
198,837
|
|
|
|
|
Other income,
net
|
68,560
|
|
68,447
|
|
|
|
|
Provision for income
taxes
|
(50,624)
|
|
(37,531)
|
Loss from equity
method investments
|
(3,289)
|
|
(4,425)
|
Net
income
|
276,796
|
|
225,328
|
|
|
|
|
Net (gain)
attributable to the noncontrolling interests
|
(2,339)
|
|
(444)
|
|
|
|
|
Net income
attributable to New Oriental Education
& Technology Group Inc.
|
274,457
|
|
224,884
|
|
|
|
|
|
|
|
|
Net income per
share attributable to New Oriental-
Basic
|
1.74
|
|
1.43
|
|
|
|
|
Net income per
share attributable to New Oriental-
Diluted
|
1.74
|
|
1.43
|
|
|
|
|
Net income per ADS
attributable to New Oriental-
Basic (note 2)
|
1.74
|
|
1.43
|
|
|
|
|
Net income per ADS
attributable to New Oriental-
Diluted (note 2)
|
1.74
|
|
1.43
|
|
|
|
|
Other comprehensive
loss, net of tax
|
(22,712)
|
|
(35,945)
|
Comprehensive
income
|
254,084
|
|
189,383
|
Comprehensive
income attributable to New Oriental
Education & Technology Group Inc.
|
250,670
|
|
188,327
|
Notes:
|
|
|
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the
operating costs and expenses as follows:
|
|
|
|
|
|
For the Year Ended
May 31
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
General and
administrative
|
20,287
|
|
16,810
|
Total
|
20,287
|
|
16,810
|
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATION OF
NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP
MEASURES
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
For the Year Ended
May 31
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
554,948
|
|
471,010
|
Share-based
compensation expense in
general and administrative expenses
|
20,287
|
|
16,810
|
Non-GAAP general and
administrative
expenses
|
534,661
|
|
454,200
|
|
|
|
|
Total operating costs
and expenses
|
1,537,360
|
|
1,283,271
|
Share-based
compensation expenses
|
20,287
|
|
16,810
|
Non-GAAP operating
costs and
expenses
|
1,517,073
|
|
1,266,461
|
|
|
|
|
Operating
income
|
262,149
|
|
198,837
|
Share-based
compensation expenses
|
20,287
|
|
16,810
|
Non-GAAP operating
income
|
282,436
|
|
215,647
|
|
|
|
|
Operating
margin
|
14.6%
|
|
13.4%
|
Non-GAAP operating
margin
|
15.7%
|
|
14.6%
|
|
|
|
|
Net income
attributable to New Oriental
|
274,457
|
|
224,884
|
Share-based
compensation expenses
|
20,287
|
|
16,810
|
Non-GAAP net
income
|
294,744
|
|
241,694
|
|
|
|
|
Net income per ADS
attributable to
New Oriental- Basic (note 2)
|
1.74
|
|
1.43
|
Net income per ADS
attributable to
New Oriental- Diluted (note 2)
|
1.74
|
|
1.43
|
|
|
|
|
Non-GAAP net income
per ADS
attributable to New Oriental - Basic
(note 2)
|
1.87
|
|
1.54
|
Non-GAAP net income
per ADS
attributable to New Oriental - Diluted
(note 2)
|
1.87
|
|
1.54
|
|
|
|
|
Weighted average
shares used in
calculating basic net income per ADS
(note 2)
|
157,551,320
|
|
156,782,439
|
Weighted average
shares used in
calculating diluted net income per ADS
(note 2)
|
157,986,394
|
|
157,391,686
|
|
|
|
|
Non-GAAP income per
share - basic
|
1.87
|
|
1.54
|
Non-GAAP income per
share - diluted
|
1.87
|
|
1.54
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
View original
content:http://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-fourth-fiscal-quarter-and-fiscal-year-ended-may-31-2017-300493388.html
SOURCE New Oriental Education and Technology Group Inc.