Fiscal Year Net Revenues Increased by 15.6%
Year-Over-Year
Fiscal Year Student Enrollments Increased by 26.3%
Year-Over-Year
Fiscal Year Net Income Attributable to
New Oriental Increased by 73.6% Year-Over-Year
BEIJING, July 28, 2020 /PRNewswire/ -- New Oriental
Education & 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 ended
May 31, 2020.
Financial Highlights for the Fourth Fiscal Quarter Ended
May 31, 2020
- Total net revenues decreased by 5.3% year-over-year to
US$798.5 million for the fourth
fiscal quarter of 2020.
- Operating income decreased by 86.7% year-over-year to
US$10.3 million for the fourth fiscal
quarter of 2020.
- Non-GAAP operating income ,which excludes share-based
compensation expenses, decreased by 68.3% year-over-year to
US$32.5 million for the fourth fiscal
quarter of 2020.
- Net income attributable to New Oriental decreased by 69.5%
year-over-year to US$13.2 million for
the fourth fiscal quarter of 2020.
- Non-GAAP net income attributable to New Oriental, which
excludes share-based compensation expenses and gain / (loss) from
fair value change of long-term investments, decreased by 49.0%
year-over-year to US$48.5 million for
the fourth fiscal quarter of 2020.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
4Q
FY2020
|
4Q
FY2019
|
% of
change
|
Net
revenues
|
798,473
|
842,851
|
-5.3%
|
Operating
income
|
10,255
|
76,972
|
-86.7%
|
Non-GAAP operating
income (2)(3)
|
32,528
|
102,712
|
-68.3%
|
Net
income attributable to New Oriental
|
13,191
|
43,248
|
-69.5%
|
Non-GAAP net income
attributable to New Oriental (2)(3)
|
48,505
|
95,075
|
-49.0%
|
Net income per ADS
attributable to New Oriental - basic
|
0.08
|
0.27
|
-69.6%
|
Net income per ADS
attributable to New Oriental - diluted
|
0.08
|
0.27
|
-69.6%
|
Non-GAAP net income
per ADS attributable to New Oriental
- basic(3)(4)
|
0.31
|
0.60
|
-49.2%
|
Non-GAAP net income
per ADS attributable to New Oriental
- diluted(3)(4)
|
0.30
|
0.60
|
-49.1%
|
(in thousands US$,
except per ADS(1) data)
|
FY2020
|
FY2019
|
% of
change
|
Net
revenues
|
3,578,682
|
3,096,491
|
15.6%
|
Operating
income
|
399,003
|
305,534
|
30.6%
|
Non-GAAP operating
income(2)(3)
|
461,060
|
376,870
|
22.3%
|
Net
income attributable to New Oriental
|
413,333
|
238,065
|
73.6%
|
Non-GAAP net income
attributable to New Oriental(2)(3)
|
484,155
|
411,080
|
17.8%
|
Net income per ADS
attributable to New Oriental - basic
|
2.61
|
1.50
|
73.5%
|
Net income per ADS
attributable to New Oriental - diluted
|
2.59
|
1.50
|
73.1%
|
Non-GAAP net income
per ADS attributable to New Oriental
- basic(3)(4)
|
3.06
|
2.60
|
17.7%
|
Non-GAAP net income
per ADS attributable to New Oriental
- diluted(3)(4)
|
3.03
|
2.58
|
17.4%
|
(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 and
loss from fair value change of long-term investments 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, 2020
- Total student enrollments in academic subjects tutoring and
test preparation courses decreased by 6.2% year-over-year to
approximately 2,585,600 for the fourth fiscal quarter of 2020.
- The total number of schools and learning centers was 1,465 as
of May 31, 2020, an increase of 211
compared to 1,254 as of May 31, 2019,
and an increase of 49 compared to 1,416 as of February 29, 2020. The total number of schools
was 104 as of May 31, 2020.
Michael Yu, New Oriental's
Executive Chairman, commented, "As we guided in the previous
quarter, the outbreak of COVID-19 pandemics around the globe
starting from March posed continuing pressure on our key business
lines. We saw challenges on acquiring new customers during the
pandemics, and the enrollment for summer courses has also been
delayed. For the fourth quarter of fiscal year, net revenue was
down 5.3%, or 1% if measured in Renminbi. We see a mix of results
amongst business lines. Our U-Can middle and high school
all-subjects after-school tutoring business grew by approximately
1%, or 5% if measured in Renminbi. Furthermore, our POP Kids
program achieved a growth of approximately 10%, or 14% if measured
in Renminbi. But our overseas related businesses, including test
preparation and consulting business, faced the most difficult
challenges, due to cancellation of overseas exams, suspension of
overseas schools and restrictions on travels. The overseas test
preparation business declined by approximately 52%, or 50% if
measured in Renminbi. Overseas study consulting business grew by
approximately 6%, or 11% if measured in Renminbi.
Going into the spring semester, we continued to leverage our
self-developed OMO (online merging offline) system to provide
highly interactive small size online live broadcasting classes to
all students. The refund rates from cancellations have been
stabilized at a normal level while our customer retention rates
from winter to spring semester and from spring to summer semester
were trending higher than the same periods last year, which
demonstrated our customers' satisfaction and the effectiveness of
our online courses through our OMO system. As the importance of
online education becomes more apparent than ever before, we put
more focus on our key growth driver OMO strategy, which will enable
our service to virtually reach more Chinese cities and a broader
pool of students, and offer low-cost experimental online classes to
attract new customers. We believe this business direction can take
advantage of the digital trend and will substantially boost our
enrollment rate and profitability in the coming quarters. Besides
our OMO system, we also continued to make strategic investments
into our dual-teacher model classes as well as new initiatives in
K-12 tutoring on our pure online education platform, Koolearn.com.
During the past quarter, Koolearn proactively provided free
spring-semester courses which enabled a large number of new
students to experience Koolearn's online large class K-12 courses,
and has successfully contributed a significant increase in new
customers as a result. "
Mr. Yu continued, "Looking ahead, we are also pleased to see
that we have gradually resumed our offline operation in over 90% of
cities that we have presence in, with a vast amount of students
returning to our offline learning centers. Despite the challenges
in the near term, we remain optimistic about a recovery of business
in the coming new fiscal year and a brighter prospect of our
business in the long run. We are certain that with New Oriental's
leading brand, superior education product and system and the best
teaching resources, we will continue to capture more market share
with our leading position in China's huge after-school tutoring and
training market and deliver long-term value for our
shareholders."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "During the fourth fiscal quarter,
notwithstanding the disruptions to our daily operations, we
remained committed to carrying out our expansion plan and added a
net of 44 learning centers in cities we currently operate in and
opened one new offline training school in a new city and four new
dual-teacher model schools in four new cities. By the end of this
fiscal year, the total square meters of classroom area increased by
approximately 26% comparing with the end of fiscal year 2019. We
target to increase about 20-25% capacity for the next fiscal year.
We believe our fresh offline facilities and proven
scalability will prepare us to capture the market
consolidation opportunity post-COVID."
Mr. Zhou continued, "In addition, our summer promotion strategy
also delivered outstanding results as the promotion enrollments
before the start of the summer holiday by mid-July this year
reached 986,000, achieving a 20% year-over-year increase. The
encouraging result indicate the opportunity we have taken to
increase our market share amid market consolidation, as certain
players may lack the financial and digital capabilities to sustain
their operations during such difficult times. "
Stephen Zhihui Yang, New
Oriental's Chief Financial Officer, commented, "For the whole
fiscal year 2020, despite being faced with huge challenges from the
COVID-19 pandemic, we still delivered an expansion of Non-GAAP
operating margin of 70 basis points year-over-year to 12.9%,
compared to 12.2% for the previous fiscal year. During the quarter,
due to the continuing pressure on our topline and the increased
spending from offering free classes to promote Koolearn's online
large class K-12 courses, our gross margin for the quarter was
51.0%, down 500 basis points year-over-year. Our Non-GAAP operating
margin for the quarter was 4.1%, down 810 basis points
year-over-year, and Non-GAAP net margin for the quarter was 6.1%,
down 520 basis points year-over-year. In order to minimize the
negative impact on our bottom line, we actively adjusted our
operational strategy and made more efforts on cost control and
reducing expenditures, especially for business lines facing bigger
negative impact in the near term. We believe that our continuous
efforts will sustain us through the crisis and hopeful that the
adverse effects on our business from the pandemic will subside
gradually."
Financial Results for the Fourth Fiscal Quarter Ended
May 31, 2020
Net Revenues
For the fourth fiscal quarter of 2020, New Oriental reported net
revenues of US$798.5 million,
representing a 5.3% decrease year-over-year. Net revenues from
educational programs and services for the fourth fiscal quarter
were US$664.9 million, representing a
7.3% decrease year-over-year.
Total student enrollments in academic subjects tutoring and test
preparation courses in the fourth fiscal quarter of 2020 decreased
by 6.2% year-over-year to approximately 2,585,600. The decline of
the number of student enrollments is primarily due to the outbreak
of COVID-19, which has caused challenges on acquiring new customers
in the quarter and a delay in student enrollments for summer and
autumn classes.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$788.2 million, representing a 2.9% increase
year-over-year. Non-GAAP operating costs and expenses for the
quarter, which exclude share-based compensation expenses, were
US$765.9 million, representing a 3.5%
increase year-over-year.
- Cost of revenues increased by 5.3% year-over-year to
US$391.1 million, primarily due to
increases in teachers' compensation for more teaching hours and
higher rental costs for the increased number of schools and
learning centers in operation.
- Selling and marketing expenses increased by 11.4%
year-over-year to US$118.0 million,
primarily due to the addition of a number of customer service
representatives and marketing staff with the aim of capturing the
new market opportunity during COVID-19 pandemic, especially for new
initiatives in K-12 tutoring on our pure online education platform,
Koolearn.com.
- General and administrative expenses for the quarter
decreased by 3.3% year-over-year to US$279.2
million. Non-GAAP general and administrative expenses, which
exclude share-based compensation expenses, were US$261.0 million, representing a 1.3% decrease
year-over-year.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, decreased by 13.5% to
US$22.3 million in the fourth fiscal
quarter of 2020.
Operating Income and Operating Margin
Operating income was US$10.3
million, an 86.7% decrease from US$77.0 million in the same period of the prior
fiscal year. Non-GAAP operating income for the quarter was
US$32.5 million, a 68.3% decrease
from US$102.7 million in the same
period of the prior fiscal year.
Operating margin for the quarter was 1.3%, compared to 9.1% in
the same period of the prior fiscal year. Non-GAAP operating
margin, which excludes share-based compensation expenses, for the
quarter was 4.1%, compared to 12.2% in the same period of the prior
fiscal year.
Net Income and EPS
Net income attributable to New Oriental for the quarter was
US$13.2million, representing a 69.5%
decrease from the same period of the prior fiscal year. Basic and
diluted earnings per ADS attributable to New Oriental were
US$0.08 and US$0.08, respectively.
Non-GAAP Net Income and Non-GAAP EPS
Non-GAAP net income attributable to New Oriental for the quarter
was US$48.5 million, representing a
49.0% decrease from the same period of the prior fiscal year.
Non-GAAP basic and diluted earnings per ADS attributable to New
Oriental were US$0.31 and
US$0.30, respectively.
Cash Flow
Net operating cash flow for the fourth fiscal quarter of 2020
was approximately US$108.5 million.
Capital expenditures for the quarter were US$89.7 million, which were primarily
attributable to opening of 73 facilities and renovations at
existing learning centers.
Balance Sheet
As of May 31, 2020, New Oriental
had cash and cash equivalents of US$915.1
million, compared to US$1,414.2
million as of May 31, 2019. In
addition, the Company had US$284.8
million in term deposits and US$2,318.3 million in short-term investment.
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 the fiscal year 2020 was US$1,324.4 million, an increase of 1.8% from
US$1,301.1 million at the end of the
fourth quarter of the fiscal year 2019.
Financial Results for the Fiscal Year Ended May 31, 2020
For the fiscal year 2020 ended May 31,
2020, New Oriental reported net revenues of US$3,578.7 million, representing a 15.6% increase
year-over-year.
Total student enrollments in academic subjects tutoring and test
preparation courses in the fiscal year 2020 increased by 26.3% to
approximately 10,590,100.
Operating income for the fiscal year 2020 was US$399.0 million, representing a 30.6% increase
year-over-year. Non-GAAP operating income for the fiscal year 2020
was US$461.1 million, representing a
22.3% increase year-over-year.
Operating margin for the fiscal year 2020 was 11.1%, compared to
9.9% for the same period of the prior fiscal year. Non-GAAP
operating margin, which excludes share-based compensation expenses
for the fiscal year 2020, was 12.9%, compared to 12.2% for the same
period of the prior fiscal year.
Net income attributable to New Oriental for the fiscal year 2020
was US$413.3 million, representing a
73.6% increase year-over-year. Basic and diluted net income per ADS
attributable to New Oriental for the fiscal year 2020 amounted to
US$2.61 and US$2.59, respectively.
Non-GAAP net income attributable to New Oriental for the fiscal
year 2020 was US$484.2 million,
representing a 17.8% increase year-over-year. Non-GAAP basic and
diluted net income per ADS attributable to New Oriental for the
fiscal year 2020 amounted to US$3.06
and US$3.03 respectively.
Outlook for the First Quarter of the Fiscal Year 2021
The impact of the COVID-19 pandemic on our operations has proven
to be significant and unpredictable. Not only has the pandemic
caused delays in national exams and enrollments for our summer and
autumn classes, the resurgence of the pandemic in certain cities,
such as Beijing, has further
delayed the resumption of schools, which in turn shortened the
summer holiday. Under such uncertain circumstances, with less
visibility of our business performance data, we have decided to
take the most conservative approach to make our forecast for the
first quarter of the fiscal year 2021.
New Oriental expects total net revenues in the first quarter of
the fiscal year 2021 (June 1, 2020 to
August 31, 2020) to be in the range
of US$911.2 million to US$953.5 million, representing year-over-year
decline in the range of 15% to 11%.
The projected decline of revenue in our functional currency
Renminbi is expected to be in the range of 14% to 10% for the first
quarter of the fiscal year 2021.
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 28, 2020, U.S. Eastern Time (8 PM on July 28,
2020, Beijing/Hong Kong
Time).
Please register in advance of the conference, using the link
provided below. Upon registering, you will be provided with
participant dial-in numbers, passcode and unique registrant ID.
Conference call registration link:
http://apac.directeventreg.com/registration/event/2169323. It
will automatically direct you to the registration page of "New
Oriental Fourth Fiscal Quarter 2020 Earnings Conference Call" where
you may fill in your details for RSVP. If it requires you to enter
a participant conference ID, please enter "2169323".
In the 10 minutes prior to the call start time, you may use the
conference access information (including dial in number(s), direct
event passcode and registrant ID) provided in the confirmation
email received at the point of registering.
A replay of the conference call may be accessed by phone at the
following number until July 28,
2021:
International:
|
+61 2 8199
0299
|
Passcode:
|
2169323
|
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
language training and test preparation, primary and secondary
school education, online education, content development and
distribution, overseas study consulting services, pre-school
education and study tour. 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 first quarter of fiscal year 2021, 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 and gain /
(loss) from fair value change of long-term investments, operating
income excluding share-based compensation expenses, operating cost
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 and gain / (loss) from
fair value change of long-term investments. 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 and gain / (loss) from fair value change of long-term
investments 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 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 and gain / (loss) from fair value
change of long-term investments 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:
Ms. Rita
Fong
|
Ms. Sisi
Zhao
|
FTI
Consulting
|
New Oriental
Education & Technology Group Inc.
|
Tel: +852 3768
4548
|
Tel:
+86-10-6260-5568
|
Email:
rita.fong@fticonsulting.com
|
Email: zhaosisi@xdf.cn
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
As of May
31
|
|
As of May
31
|
2020
|
|
2019
|
(Unaudited)
|
|
(Audited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
915,057
|
|
1,414,171
|
Restricted
cash
|
-
|
|
43
|
Term
deposits
|
284,793
|
|
108,672
|
Short-term
investments
|
2,318,280
|
|
1,668,689
|
Accounts receivable,
net
|
4,178
|
|
3,300
|
Inventory,
net
|
31,324
|
|
29,046
|
Prepaid expenses and
other current assets, net
|
199,404
|
|
199,677
|
Amounts due from
related parties, current
|
3,384
|
|
42,644
|
Total current
assets
|
3,756,420
|
|
3,466,242
|
|
|
|
|
Restricted cash,
non-current
|
4,367
|
|
4,013
|
Property and
equipment, net
|
672,455
|
|
532,015
|
Land use rights,
net
|
6,037
|
|
6,405
|
Amounts due from
related parties, non-current
|
22,709
|
|
1,204
|
Long-term
deposits
|
62,116
|
|
49,742
|
Long-term prepaid
rents
|
-
|
|
442
|
Intangible assets,
net
|
10,246
|
|
13,935
|
Goodwill,
net
|
80,366
|
|
79,614
|
Long-term investments,
net
|
431,101
|
|
404,704
|
Deferred tax assets,
non-current, net
|
63,324
|
|
61,467
|
Right-of-use
assets
|
1,425,466
|
|
-
|
Other non-current
assets
|
22,278
|
|
26,776
|
Total
assets
|
6,556,885
|
|
4,646,559
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable (including accounts payable of the consolidated variable
interest entities without recourse
to New Oriental of US$33,646 and US$31,658 as of May 31, 2019 and
May 31, 2020, respectively)
|
33,147
|
|
34,057
|
Accrued
expenses and other current liabilities (including accrued expenses
and other current liabilities of the
consolidated variable interest entities without recourse to New
Oriental of US$518,937 and US$581,576 as of
May 31, 2019 and May 31, 2020, respectively)
|
634,619
|
|
576,521
|
Income
taxes payable (including income tax payable of the consolidated
variable interest entities without
recourse to New Oriental of US$79,067 and US$87,331 as of May 31,
2019 and May 31, 2020, respectively)
|
101,385
|
|
94,071
|
Amounts
due to related parties (including amounts due to related parties of
the consolidated variable interest
entities without recourse to New Oriental of US$472 and US$1,590 as
of May 31, 2019 and May 31, 2020,
respectively)
|
1,590
|
|
472
|
Deferred
revenue (including deferred revenue of the consolidated variable
interest entities without recourse
to New Oriental of US$1,268,318 and US$1,317,645 as of May
31, 2019 and May 31, 2020, respectively)
|
1,324,384
|
|
1,301,103
|
Operating
Lease Liability-current (including operating lease
liabilities-current of the consolidated variable
interest entities without recourse to New Oriental of nil and
US$376,177 as of May 31, 2019 and May 31,
2020, respectively)
|
384,239
|
|
-
|
|
|
|
|
Total current
liabilities
|
2,479,364
|
|
2,006,224
|
|
|
|
|
Deferred
tax liabilities, non-current (including deferred tax liabilities of
the consolidated variable interest
entities without recourse to New Oriental of US$18,607 and
US$12,392 as of May 31, 2019 and May 31, 2020,
respectively)
|
11,906
|
|
18,781
|
Long term
loan (including Long term loan of the consolidated variable
interest entities without recourse to
New Oriental of nil and nil as of May 31, 2019 and May 31, 2020,
respectively)
|
117,881
|
|
96,457
|
Operating
lease liabilities (including operating lease liabilities of the
consolidated variable interest entities
without recourse to New Oriental of nil and US$1,054,149 as of May
31, 2019 and May 31, 2020, respectively)
|
1,077,923
|
|
-
|
|
|
|
|
Total long-term
liabilities
|
1,207,710
|
|
115,238
|
|
|
|
|
Total
liabilities
|
3,687,074
|
|
2,121,462
|
|
|
|
|
Equity
|
|
|
|
New Oriental
Education & Technology Group Inc. shareholders'
equity
|
2,736,924
|
|
2,360,686
|
Non-controlling interests
|
132,887
|
|
164,411
|
Total
equity
|
2,869,811
|
|
2,525,097
|
|
|
|
|
Total liabilities
and equity
|
6,556,885
|
|
4,646,559
|
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
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
798,473
|
|
842,851
|
|
|
|
|
Operating cost and
expenses (note 1)
|
|
|
|
Cost of
revenues
|
391,080
|
|
371,241
|
Selling and
marketing
|
117,986
|
|
105,931
|
General and
administrative
|
279,152
|
|
288,759
|
|
|
|
|
Total operating
cost and expenses
|
788,218
|
|
765,931
|
Gain on disposal of a
subsidiary
|
-
|
|
52
|
Operating
income
|
10,255
|
|
76,972
|
Less: Loss from fair
value change of long-term investments
|
(17,965)
|
|
(29,044)
|
|
|
|
|
Other income,
net
|
29,728
|
|
21,535
|
Provision for income
taxes
|
(36,194)
|
|
(30,555)
|
Loss from equity
method investments
|
(1,000)
|
|
(1,077)
|
Net
(loss)income
|
(15,176)
|
|
37,831
|
|
|
|
|
Add: Net loss
attributable to non-controlling interests
|
28,367
|
|
5,417
|
|
|
|
|
Net income
attributable to New Oriental Education & Technology
Group Inc.'s shareholders
|
13,191
|
|
43,248
|
|
|
|
|
Net income per
common share
|
|
|
|
-
Basic
|
0.08
|
|
0.27
|
-
Diluted
|
0.08
|
|
0.27
|
|
|
|
|
Net income per ADS
(note 2)
|
|
|
|
-
Basic
|
0.08
|
|
0.27
|
-
Diluted
|
0.08
|
|
0.27
|
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
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
279,152
|
|
288,759
|
Less: Share-based
compensation expenses in general and administrative
expenses
|
18,147
|
|
24,401
|
Non-GAAP general and
administrative expenses
|
261,005
|
|
264,358
|
|
|
|
|
Total operating cost
and expenses
|
788,218
|
|
765,931
|
Less: Share-based
compensation expenses
|
22,273
|
|
25,740
|
Non-GAAP operating
cost and expenses
|
765,945
|
|
740,191
|
|
|
|
|
Operating
income
|
10,255
|
|
76,972
|
Add: Share-based
compensation expenses
|
22,273
|
|
25,740
|
Non-GAAP operating
income(loss)
|
32,528
|
|
102,712
|
|
|
|
|
Operating
margin
|
1.3%
|
|
9.1%
|
Non-GAAP operating
margin
|
4.1%
|
|
12.2%
|
|
|
|
|
Net income
attributable to New Oriental
|
13,191
|
|
43,248
|
Add: Share-based
compensation expenses
|
17,349
|
|
22,783
|
Less: Gain from fair
value change of long-term investments
|
17,965
|
|
29,044
|
Non-GAAP net income
attributable to New Oriental
|
48,505
|
|
95,075
|
|
|
|
|
Net income per ADS
attributable to New Oriental- Basic (note 2)
|
0.08
|
|
0.27
|
Net income per
ADS attributable to New Oriental- Diluted (note 2)
|
0.08
|
|
0.27
|
|
|
|
|
Non-GAAP net income
per ADS attributable to New Oriental - Basic (note 2)
|
0.31
|
|
0.60
|
Non-GAAP net income
per ADS attributable to New Oriental - Diluted (note
2)
|
0.30
|
|
0.60
|
|
|
|
|
Weighted average
shares used in calculating basic net income per ADS (note
2)
|
158,540,080
|
|
157,849,975
|
Weighted average
shares used in calculating diluted net income per ADS
(note 2)
|
159,577,047
|
|
159,066,864
|
|
|
|
|
Non-GAAP income per
share - basic
|
0.31
|
|
0.60
|
Non-GAAP income per
share - diluted
|
0.30
|
|
0.60
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the operating
cost and expenses as follows:
|
|
|
For the Three
Months Ended May 31
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
1,574
|
|
134
|
Selling and
marketing
|
2,552
|
|
1,205
|
General and
administrative
|
18,147
|
|
24,401
|
Total
|
22,273
|
|
25,740
|
|
|
|
|
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
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
3,578,682
|
|
3,096,491
|
|
|
|
|
Operating costs
and expenses (note 1):
|
|
|
|
Cost of
revenues
|
1,588,899
|
|
1,376,269
|
Selling and
marketing
|
445,259
|
|
384,287
|
General and
administrative
|
1,145,521
|
|
1,034,028
|
|
|
|
|
Total operating
costs and expenses
|
3,179,679
|
|
2,794,584
|
Gain on disposal of a
subsidiary
|
-
|
|
3,627
|
Operating
income
|
399,003
|
|
305,534
|
Less: Loss from fair
value change of long-term investments
|
(18,451)
|
|
(104,636)
|
|
|
|
|
Other income,
net
|
107,284
|
|
114,951
|
Provision for income
taxes
|
(134,362)
|
|
(85,714)
|
Income (Loss) from
equity method investments
|
1,385
|
|
(2,289)
|
|
|
|
|
Net
income
|
354,859
|
|
227,846
|
|
|
|
|
Add: Net loss
attributable to non-controlling interests
|
58,474
|
|
10,219
|
|
|
|
|
Net income
attributable to New Oriental Education & Technology
Group Inc.
|
413,333
|
|
238,065
|
|
|
|
|
|
|
|
|
Net income per
share attributable to New Oriental-Basic
|
2.61
|
|
1.50
|
|
|
|
|
Net income per
share attributable to New Oriental-Diluted
|
2.59
|
|
1.50
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Basic (note 2)
|
2.61
|
|
1.50
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Diluted (note 2)
|
2.59
|
|
1.50
|
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
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
1,145,521
|
|
1,034,028
|
Less: Share-based
compensation expenses in general and administrative
expenses
|
55,606
|
|
69,997
|
Non-GAAP general and
administrative expenses
|
1,089,915
|
|
964,031
|
|
|
|
|
Total operating costs
and expenses
|
3,179,679
|
|
2,794,584
|
Less: Share-based
compensation expenses
|
62,057
|
|
71,336
|
Non-GAAP operating
costs and expenses
|
3,117,622
|
|
2,723,248
|
|
|
|
|
Operating
income
|
399,003
|
|
305,534
|
Add: Share-based
compensation expenses
|
62,057
|
|
71,336
|
Non-GAAP operating
income
|
461,060
|
|
376,870
|
|
|
|
|
Operating
margin
|
11.1%
|
|
9.9%
|
Non-GAAP operating
margin
|
12.9%
|
|
12.2%
|
|
|
|
|
Net income
attributable to New Oriental
|
413,333
|
|
238,065
|
Add: Share-based
compensation expenses
|
52,371
|
|
68,379
|
Add: Loss from fair
value change of long-term investments
|
18,451
|
|
104,636
|
Non-GAAP net income
to New Oriental
|
484,155
|
|
411,080
|
|
|
|
|
Net income per ADS
attributable to New Oriental- Basic (note 2)
|
2.61
|
|
1.50
|
Net income per ADS
attributable to New Oriental- Diluted (note 2)
|
2.59
|
|
1.50
|
|
|
|
|
Non-GAAP net income
per ADS attributable to New Oriental - Basic (note 2)
|
3.06
|
|
2.60
|
Non-GAAP net income
per ADS attributable to New Oriental - Diluted (note 2)
|
3.03
|
|
2.58
|
|
|
|
|
Weighted average
shares used in calculating basic net income per ADS (note
2)
|
158,429,576
|
|
158,293,890
|
Weighted average
shares used in calculating diluted net income per ADS (note
2)
|
159,536,890
|
|
159,039,345
|
|
|
|
|
Non-GAAP income per
share - basic
|
3.06
|
|
2.60
|
Non-GAAP income per
share - diluted
|
3.03
|
|
2.58
|
|
|
|
|
|
|
|
|
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
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
2,224
|
|
134
|
Selling and
marketing
|
4,227
|
|
1,205
|
General and
administrative
|
55,606
|
|
69,997
|
Total
|
62,057
|
|
71,336
|
|
|
|
|
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-the-fiscal-year-ended-may-31-2020-301100955.html
SOURCE New Oriental Education and Technology Group Inc.