- Net Revenues up by 71.1%
Year-Over-Year
- Income from Operations up by 160.3%
Year-Over-Year
- Net Income Attributable to TAL up by
132.0% Year-Over-Year
- Total Student Enrollments up by
88.7% Year-Over-Year
BEIJING, July 26, 2018 /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 first quarter of fiscal year 2019 ended
May 31, 2018.
Highlights for the First Quarter of Fiscal Year 2019
- Net revenues increased by 71.1% year-over-year to US$550.6 million from US$321.9 million in the same period of the prior
year.
- Income from operations increased by 160.3% year-over-year to
US$75.0 million, from US$28.8 million in the same period of the prior
year.
- Non-GAAP income from operations increased by 127.8%
year-over-year to US$90.0 million,
from US$39.5 million in the same
period of the prior year.
- Net income attributable to TAL increased by 132.0%
year-over-year to US$66.8 million,
from US$28.8 million in the same
period of the prior year.
- Non-GAAP net income attributable to TAL, which excluded
share-based compensation expenses, increased by 107.1% to
US$81.8 million from US$39.5 million in the same period of the prior
year.
- Basic and diluted net income per American Depositary Share
("ADS") were US$0.12 and US$0.11, respectively. Non-GAAP basic and diluted
net income per ADS, which excluded share-based compensation
expenses, were both US$0.14. Three
ADSs represent one Class A common share.
- Cash, cash equivalents and short-term investments totaled
US$1,929.2 million as of May 31, 2018, compared to US$1,498.9 million as of February 28, 2018.
- Total student enrollments increased by 88.7% year-over-year to
approximately 1,976,960 from approximately 1,047,760 in the same
period of the prior year.
- Total physical network increased from 594 learning centers in
42 cities as of February 28, 2018 to
630 learning centers in 43 cities as of May
31, 2018.
Financial and
Operating Data -- First Quarter of Fiscal Year 2019
|
(In US$ thousands,
except per ADS data, student enrollments and
percentages)
|
|
|
Three Months
Ended
|
|
May
31,
|
|
2017
|
2018
|
Pct.
Change
|
Net
revenues
|
321,903
|
550,649
|
71.1%
|
Operating
income
|
28,805
|
74,989
|
160.3%
|
Non-GAAP operating
income
|
39,490
|
89,955
|
127.8%
|
Net income
attributable to TAL
|
28,789
|
66,800
|
132.0%
|
Non-GAAP net income
attributable to
TAL
|
39,474
|
81,766
|
107.1%
|
Net income per ADS
attributable to
TAL – basic
|
0.06
|
0.12
|
102.2%
|
Net income per ADS
attributable to
TAL – diluted
|
0.05
|
0.11
|
109.8%
|
Non-GAAP net income
per ADS
attributable to TAL – basic
|
0.08
|
0.14
|
80.5%
|
Non-GAAP net income
per ADS
attributable to TAL – diluted
|
0.07
|
0.14
|
90.2%
|
Total student
enrollments in small
class, one-on-one, and online courses
|
1,047,760
|
1,976,960
|
88.7%
|
"The first quarter's financial and operational results reflect
the steady growth of our offline and online business revenue and
enrollments on a year-over-year basis," said Mr. Rong Luo, TAL's
Chief Financial Officer. "Looking ahead, we will pursue continuous
improvements in product quality and customer satisfaction and we
remain committed to a healthy and sustainable overall business
development."
Financial Results for the First Quarter of Fiscal Year
2019
Net Revenues
In the first quarter of fiscal year 2019, TAL reported net
revenues of US$550.6 million,
representing a 71.1% increase from US$321.9
million in the first quarter of fiscal year 2018. The
increase was mainly driven by an increase in total student
enrollments, which increased by 88.7% to approximately 1,976,960
from approximately 1,047,760 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 first quarter of fiscal year 2019, operating costs and
expenses were US$480.7 million, a
63.7% increase from US$293.7 million
in the first quarter of fiscal year 2018. Non-GAAP operating costs
and expenses, which excluded share-based compensation expenses,
were US$465.8 million, a 64.6%
increase from US$283.0 million in the
first quarter of fiscal year 2018.
Cost of revenues increased by 53.9% to US$261.1 million from US$169.6 million in the first quarter of fiscal
year 2018. The increase in cost of revenues was mainly due to an
increase in rental costs and teacher compensation. Non-GAAP cost of
revenues, which excluded share-based compensation expenses,
increased by 53.9% to US$260.9
million, from US$169.6 million
in the first quarter of fiscal year 2018.
Selling and marketing expenses increased by 117.4% to
US$94.5 million from US$43.5 million in the first quarter of fiscal
year 2018. Non-GAAP selling and marketing expenses, which excluded
share-based compensation expenses, increased by 119.3% to
US$92.9 million, from US$42.3 million in the first quarter of fiscal
year 2018. The increase of selling and marketing expenses in the
first quarter of fiscal year 2019 was primarily a result of more
marketing promotion activities to expand our customer base and
brand enhancement, as well as a rise in the compensation to sales
and marketing staff to support a greater number of programs and
service offerings compared to the same period in the prior
year.
General and administrative expenses increased by 55.2% to
US$125.2 million from US$80.6 million in the first quarter of fiscal
year 2018. The increase in general and administrative expenses was
mainly due to an increase of the number of our general and
administrative personnel compared to the same period in the prior
year and a rise in compensation to our general and administrative
personnel, as well as an increase in rental cost. Non-GAAP general
and administrative expenses, which excluded share-based
compensation expenses, increased by 57.5% to US$112.0 million, from US$71.1 million in the first quarter of fiscal
year 2018.
Total share-based compensation expenses allocated to the related
operating costs and expenses increased by 40.1% to US$15.0 million in the first quarter of fiscal
year 2019 from US$10.7 million in the
same period of fiscal year 2018. The increase was mainly due to new
grants of non-vested shares and options to employees by the Company
in fiscal year 2019.
Gross
Profit
Gross profit increased by 90.1% to US$289.6 million from US$152.3 million in the first quarter of fiscal
year 2018.
Income from Operations
Income from operations increased by 160.3% to US$75.0 million from US$28.8 million in the first quarter of fiscal
year 2018. Non-GAAP income from operations, which excluded
share-based compensation expenses, increased by 127.8% to
US$90.0 million from US$39.5 million in the first quarter of fiscal
year 2018.
Other Income
Other income was US$8.7 million
for the first quarter of fiscal year 2019, mainly related to the
fair value changes of equity securities in accordance with the
update (ASU 2016-01 and ASU 2018-03) to the accounting standard
(ASC321) adopted on March 1,
2018.
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was US$9.7 million for the first quarter of fiscal
year 2019, compared to US$0.7 million
for the first quarter of fiscal year 2018. Impairment loss on
long-term investments was mainly due to the other-than-temporary
declines in the value of long-term investments in several
investees.
Income Tax Expense
Income tax expense was US$17.3
million in the first quarter of fiscal year 2019, compared
to US$8.4 million in the first
quarter of fiscal year 2018.
Net Income Attributable to TAL Education Group
Net income attributable to TAL increased by 132.0% to
US$66.8 million from US$28.8 million in the first quarter of fiscal
year 2018. Non-GAAP net income attributable to TAL, which excluded
share-based compensation expenses, increased by 107.1% to
US$81.8 million, from US$39.5 million in the first quarter of fiscal
year 2018.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were US$0.12 and US$0.11, respectively, in the first quarter of
fiscal year 2019. Non-GAAP basic and diluted net income per ADS,
which excluded share-based compensation expenses, were both
US$0.14.
Capital Expenditures
Capital expenditures for the first quarter of fiscal year 2019
were US$28.7 million, a decrease of
US$0.9 million from US$29.6 million in the first quarter of fiscal
year 2018.
Cash, Cash Equivalents, and Short-Term
Investments
As of May 31, 2018, the Company
had US$924.4 million of cash and cash
equivalents and US$1,004.8 million of
short-term investments, compared to US$711.5
million of cash and cash equivalents and US$787.4 million of short-term investments as of
February 28, 2018.
Deferred Revenue
Revenue from Contracts with Customers ("Topic 606") became
effective for the Company on March 1,
2018, and as a result, at May 31,
2018, US$90.8 million of
deferred revenue was reclassified to accrued expenses and other
current liabilities. Such balance represented estimated amounts of
tuition collected that may be refunded in the future if students
withdraw from a course for any remaining classes. The Company's
deferred revenue balance, after the reclassification, was
US$1,328.5 million, compared to
US$959.4 million as of May 31, 2017, representing a year-over-year
increase of 38.5%. At May 31, 2018,
deferred revenue balance primarily consisted of the tuition
collected in advance for the summer and fall semesters of Xueersi
small classes.
New accounting standards
1> The "New Revenue Accounting Standard"
On March 1, 2018, the Company
adopted Revenue from Contracts with Customers ("Topic 606"),
applying the modified retrospective method to all contracts that
were not completed as of March 1,
2018. Results for reporting periods beginning March 1, 2018 are presented under Topic 606,
while prior period amounts are not adjusted and continue to be
reported under the accounting standards in effect for the prior
periods. The Company assessed variable consideration included in
its consulting service related to overseas study over the expected
service period and identified a provision under the new standard in
relation to the incremental cost, commission fee, of obtaining a
contract. The cumulative effect of initially applying the new
standard of US$4.1 million was
recorded as an adjustment to the opening balance of retained
earnings upon adoption.
In addition, reclassification was made from deferred revenue to
accrued expenses and other current liabilities for tuition
collected that may be refunded to the customers in the future if
students withdraw from a course for any remaining classes.
2> The "New Financial Instruments Accounting Standard"
The Company adopted the new financial instruments accounting
standard (ASC321) on March 1, 2018.
Upon adoption, for equity securities without readily determinable
fair value that qualify for the practical expedient to estimate
fair value using net asset value per share, the Company recorded
the cumulative effect of the adjustment of US$4.2 million to the opening balance of retained
earnings. For other equity securities without readily determinable
fair value, the Company elected measurement alternative and applied
the prospective transition approach. Under the new standard, gain
from fair value changes to the equity securities of US$10.8 million was recorded in other income
during the first quarter of fiscal year 2019.
Business Outlook
Based on our current estimates, total net revenues for the
second quarter of fiscal year 2019 are expected to be between
US$647.2 million and US$660.8 million, representing an increase of 42%
to 45% on a year-over-year basis. If not including the impact from
the recent depreciation of RMB against US dollar, the projected
revenue growth rate is expected to be in the range of 40% to 43%
for the second quarter of fiscal year 2019.
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 first fiscal quarter of
fiscal year 2019 ended May 31, 2018
at 8:00 a.m. Eastern Time on
July 26, 2018 (8:00 p.m. Beijing time on July
26, 2018).
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:
|
8470159
|
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,
August 3, 2018 (9:59 p.m. Beijing time, August 3,
2018).
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:
|
8470159
|
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 second quarter of fiscal year 2019, 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 630 physical learning centers as of May 31, 2018, located in 43 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, Xiamen, Lanzhou, Dalian, Changchun, Guiyang, Dongguan, Changzhou, Xuzhou, Nantong, Foshan, Zhenjiang,
Shaoxing, Yangzhou, Yantai, Wenzhou, Zhongshan, Zibo and
Huizhou. 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 SEC 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 or as a substitute for
the financial information prepared and presented in accordance with
GAAP. For more information on these non-GAAP financial measures,
please see the table captioned "Reconciliations of non-GAAP
measures to the most comparable GAAP measures" set forth at the end
of this release.
TAL believes that these non-GAAP financial measures provide
meaningful supplemental information regarding its performance and
liquidity by excluding share-based expenses that may not be
indicative of its operating performance from a cash perspective.
TAL believes that both management and investors benefit from these
non-GAAP financial measures in assessing its performance and when
planning and forecasting future periods. These non-GAAP financial
measures also facilitate management's internal comparisons to TAL's
historical performance and liquidity. TAL computes its non-GAAP
financial measures using the same consistent method from quarter to
quarter and from period to period. TAL believes these non-GAAP
financial measures are useful to investors in allowing for greater
transparency with respect to supplemental information used by
management in its financial and operational decision making. A
limitation of using non-GAAP measures is that these non-GAAP
measures exclude share-based compensation charges that have been
and will continue to be for the foreseeable future a significant
recurring expense in the Company's business. Management compensates
for these limitations by providing specific information regarding
the GAAP amounts excluded from each non-GAAP measure. The
accompanying tables have more details on the reconciliations
between GAAP financial measures that are most directly comparable
to non-GAAP financial measures.
For further information, please contact:
Echo Yan
Investor Relations
TAL Education Group
Tel: +86 10 5292 6658
Email: ir@100tal.com
Caroline Straathof
IR Inside
Tel: +31 6 5462 4301
Email: info@irinside.com
TAL EDUCATION
GROUP
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
As
of
February 28,
2018
|
|
As
of
May 31,
2018
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$ 711,519
|
|
$ 924,376
|
Restricted
cash-current
|
6,267
|
|
2,395
|
Short-term
investments
|
787,391
|
|
1,004,780
|
Inventory
|
5,272
|
|
4,507
|
Amounts due from
related parties-current
|
3,229
|
|
6,717
|
Income tax
receivables
|
15,093
|
|
21,971
|
Prepaid expenses and
other current assets
|
133,235
|
|
259,317
|
Total current
assets
|
1,662,006
|
|
2,224,063
|
Restricted
cash-non-current
|
9,911
|
|
11,069
|
Property and
equipment, net
|
247,266
|
|
262,465
|
Deferred tax
assets-non-current
|
17,361
|
|
15,619
|
Rental
deposits
|
47,333
|
|
51,157
|
Intangible assets,
net
|
43,505
|
|
61,436
|
Goodwill
|
291,382
|
|
289,449
|
Long-term
investments
|
597,606
|
|
776,003
|
Long-term prepayments
and other non-current assets
|
138,190
|
|
119,866
|
Total
assets
|
$
3,054,560
|
|
$
3,811,127
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable
(including accounts payable of the consolidated VIEs without recourse to TAL
Education Group
of 51,809 and 57,230 as of February 28, 2018, and May
31,
2018, respectively)
|
$ 57,605
|
|
$ 64,014
|
Deferred
revenue-current (including deferred revenue-current
of the consolidated VIEs without recourse to TAL
Education Group of 772,642 and 1,240,044 as of February
28, 2018, and May 31, 2018, respectively)
|
824,276
|
|
1,320,423
|
Amounts due to
related parties-current (including amounts due
to related parties-current of the consolidated VIEs
without
recourse to TAL Education Group of 2,875 and 7,145 as
of
February 28, 2018, and May 31, 2018,
respectively)
|
8,746
|
|
13,015
|
Accrued expenses and
other current liabilities (including accrued expenses and other current
liabilities of
the consolidated VIEs without recourse to TAL
Education
Group of 158,849 and 255,549 as of February 28,
2018, and
May 31, 2018, respectively)
|
229,122
|
|
316,657
|
Income tax payable
(including income tax payable of the consolidated VIEs without recourse to TAL
Education
Group of 12,106 and 19,007 as of February 28, 2018,
and
May 31, 2018, respectively)
|
13,638
|
|
25,540
|
Total current
liabilities
|
1,133,387
|
|
1,739,649
|
Deferred
revenue-non-current (including deferred revenue-
non-current of the consolidated VIEs without recourse
to
TAL Education Group of 17,980 and 8,033 as of
February
28, 2018, and May 31, 2018, respectively)
|
17,980
|
|
8,033
|
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 28, 2018, and May
31,
2018, respectively)
|
271
|
|
226
|
Deferred tax
liabilities-non-current (including deferred tax
liabilities-non-current of the consolidated VIEs
without
recourse to TAL Education Group of 19,867 and 7,310 as
of
February 28, 2018, and May 31, 2018,
respectively)
|
20,039
|
|
7,359
|
Bond payable
(including bond payable of the consolidated
VIEs without recourse to TAL Education Group of nil
and
nil as of February 28, 2018, and May 31, 2018,
respectively)
|
11,075
|
|
10,375
|
Long-term payable
(including long-term payable of the
consolidated VIEs without recourse to TAL
Education
Group of 4,660 and nil as of February 28, 2018, and
May
31, 2018, respectively)
|
6,344
|
|
1,683
|
Long-term debt
(including long-term debt of the consolidated
VIEs without recourse to TAL Education Group of nil
and
nil as of February 28, 2018, and May 31, 2018,
respectively)
|
225,000
|
|
225,000
|
Total
liabilities
|
1,414,096
|
|
1,992,325
|
|
|
|
|
TAL Education
Group Shareholders' Equity
|
|
|
|
Class A common
shares
|
118
|
|
119
|
Class B common
shares
|
71
|
|
71
|
Additional paid-in
capital
|
884,717
|
|
900,801
|
Statutory
reserve
|
38,315
|
|
38,315
|
Retained
earnings
|
565,202
|
|
640,253
|
Accumulated other
comprehensive income
|
132,325
|
|
219,247
|
Total TAL
Education Group's equity
|
1,620,748
|
|
1,798,806
|
Noncontrolling
interest
|
19,716
|
|
19,996
|
Total
equity
|
1,640,464
|
|
1,818,802
|
Total liabilities
and equity
|
$
3,054,560
|
|
$
3,811,127
|
TAL EDUCATION
GROUP
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except share, ADS, per share and per ADS data)
|
|
|
For the Three
Months Ended
May
31,
|
|
2017
|
|
2018
|
Net
revenues
|
$ 321,903
|
|
$ 550,649
|
Cost of revenues
(note 1)
|
169,604
|
|
261,082
|
Gross
profit
|
152,299
|
|
289,567
|
Operating expenses
(note 1)
|
|
|
|
Selling and
marketing
|
43,462
|
|
94,507
|
General and
administrative
|
80,631
|
|
125,151
|
Total operating
expenses
|
124,093
|
|
219,658
|
Government
subsidies
|
599
|
|
5,080
|
Income from
operations
|
28,805
|
|
74,989
|
Interest
income
|
7,701
|
|
16,563
|
Interest
expense
|
(5,225)
|
|
(3,865)
|
Other
income
|
6,788
|
|
8,686
|
Impairment loss on
long-term investments
|
(700)
|
|
(9,713)
|
Income before
provision for income tax and loss from
equity method investments
|
37,369
|
|
86,660
|
Provision for income
tax
|
(8,395)
|
|
(17,332)
|
Loss from equity
method investments
|
(1,283)
|
|
(3,057)
|
Net
income
|
27,691
|
|
66,271
|
Add: Net loss
attributable to noncontrolling interest
|
1,098
|
|
529
|
Total net income
attributable
to TAL Education Group
|
$ 28,789
|
|
$ 66,800
|
Net income per
common share
|
|
|
|
Basic
|
$ 0.17
|
|
$ 0.35
|
Diluted
|
0.16
|
|
0.33
|
Net income per ADS
(note 2)
|
|
|
|
Basic
|
$ 0.06
|
|
$ 0.12
|
Diluted
|
0.05
|
|
0.11
|
Weighted average
shares used in calculating net
income per common share
|
|
|
|
Basic
|
164,734,334
|
|
189,017,417
|
Diluted
|
191,868,574
|
|
200,427,699
|
|
Note 1: Share-based
compensation expenses are included in the operating costs and
expenses as follows:
|
|
|
For the Three
Months
|
|
Ended May
31,
|
|
2017
|
|
2018
|
Cost of
revenues
|
$ 33
|
|
$ 163
|
Selling and
marketing
|
1,118
|
|
1,626
|
General and
administrative
|
9,534
|
|
13,177
|
Total
|
$ 10,685
|
|
$ 14,966
|
|
Note 2: Three ADSs
represent one Class A common Share.
|
TAL EDUCATION
GROUP
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
|
COMPREHENSIVE
INCOME
|
(In
thousands)
|
|
|
For the Three
Months Ended
May
31,
|
|
2017
|
|
2018
|
Net
income
|
$ 27,691
|
|
$ 66,271
|
Other comprehensive
income, net of tax
|
7,294
|
|
86,709
|
Comprehensive
income
|
34,985
|
|
152,980
|
Add: Comprehensive
loss attributable to
noncontrolling interest
|
1,098
|
|
742
|
Comprehensive
income attributable to TAL
Education Group
|
$ 36,083
|
|
$ 153,722
|
TAL EDUCATION
GROUP
|
Reconciliation of
Non-GAAP Measures to the Most Comparable GAAP
Measures
|
(In thousands,
except share, ADS per share and per ADS data)
|
|
|
For the Three
Months Ended
May
31,
|
|
2017
|
|
2018
|
|
|
|
|
Cost of
revenues
|
$ 169,604
|
|
$ 261,082
|
Share-based
compensation expense in cost of revenues
|
33
|
|
163
|
Non-GAAP cost of
revenues
|
169,571
|
|
260,919
|
|
|
|
|
Selling and
marketing expenses
|
43,462
|
|
94,507
|
Share-based
compensation expense in selling and
marketing expenses
|
1,118
|
|
1,626
|
Non-GAAP selling
and marketing expenses
|
42,344
|
|
92,881
|
General and
administrative expenses
|
80,631
|
|
125,151
|
Share-based
compensation expense in general and
administrative expenses
|
9,534
|
|
13,177
|
Non-GAAP general
and administrative expenses
|
71,097
|
|
111,974
|
|
|
|
|
Operating costs
and expenses
|
293,697
|
|
480,740
|
Share-based
compensation expense in operating costs
and expenses
|
10,685
|
|
14,966
|
Non-GAAP operating
costs and expenses
|
283,012
|
|
465,774
|
|
|
|
|
Income from
operations
|
28,805
|
|
74,989
|
Share-based
compensation expenses
|
10,685
|
|
14,966
|
Non-GAAP income
from operations
|
39,490
|
|
89,955
|
|
|
|
|
Net income
attributable to TAL Education Group
|
28,789
|
|
66,800
|
Share-based
compensation expenses
|
10,685
|
|
14,966
|
Non-GAAP net
income attributable to TAL Education Group
|
$ 39,474
|
|
$ 81,766
|
Net income per
ADS
|
|
|
|
Basic
|
$ 0.06
|
|
$ 0.12
|
Diluted
|
0.05
|
|
0.11
|
Non-GAAP net
income per ADS
(note
3)
|
|
|
|
Basic
|
$ 0.08
|
|
$ 0.14
|
Diluted
|
0.07
|
|
0.14
|
|
|
|
|
ADSs used in
calculating net income per ADS
|
|
|
|
Basic
|
494,203,002
|
|
567,052,251
|
Diluted
|
575,605,722
|
|
601,283,097
|
|
Note 3: The Non-GAAP
adjusted net income per ADS is computed using Non-GAAP adjusted net
income
and the same number of ADSs used in GAAP basic and diluted EPS
calculation.
|
View original
content:http://www.prnewswire.com/news-releases/tal-education-group-announces-unaudited-financial-results-for-the-first-fiscal-quarter-ended-may-31-2018-300686946.html
SOURCE TAL Education Group