BEIJING, April 27, 2011 /PRNewswire-Asia/ -- 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 fiscal quarter ended
February 28, 2011, which is the third
quarter of New Oriental's fiscal year 2011.
Highlights for the Third Fiscal Quarter Ended February 28, 2011
- Total net revenues increased by 48.6% year-over-year to
US$132.5 million from US$89.2 million in the same period of the prior
fiscal year.
- Net income attributable to New Oriental increased by 68.1%
year-over-year to US$23.3 million
from US$13.8 million in the same
period of the prior fiscal year.
- Non-GAAP net income attributable to New Oriental, which
excludes share-based compensation expenses, increased by 42.4%
year-over-year to US$26.6 million
from US$18.7 million in the same
period of the prior fiscal year.
- Income from operations increased by 55.5% year-over-year to
US$21.2 million from US$13.6 million in the same period of the prior
fiscal year. Non-GAAP income from operations, which excludes
share-based compensation expenses, increased by 32.8%
year-over-year to US$24.6 million
from US$18.5 million in the same
period of the prior fiscal year.
- Basic and diluted net income attributable to New Oriental per
ADS was US$0.61 and US$0.60, respectively. Non-GAAP basic and diluted
net income per ADS attributable to New Oriental, which excludes
share-based compensation expenses, was US$0.69 and US$0.68, respectively. Each ADS represents four
common shares of the Company.
- Total student enrollments in academic subjects tutoring and
test preparation courses increased by 17.8% year-over-year to
approximately 490,200 from approximately 416,000 in the same period
of the prior fiscal year.
- Total number of schools and learning centers increased to 456
in the quarter ended February 28,
2011, up from 447 in the previous quarter. New Oriental
established one school in Nantong city and a net of 8 learning
centers in the quarter. The total number of schools increased to 52
and the total number of learning centers to 404 as of February 28, 2011.
Financial
and Student Enrollments Summary – Third Quarter 2011
and First Nine Months of
FY2011
(US$ in thousands, except
per ADS data, student enrollments and percentages)
|
|
|
Q3 of
FY2011
|
Q3 of
FY2010
|
Pct.
Change
|
|
Net revenues
|
132,518
|
89,167
|
48.6%
|
|
Net income attributable
to New Oriental
|
23,274
|
13,843
|
68.1%
|
|
Non-GAAP net income
attributable to New
Oriental(1)
|
26,632
|
18,698
|
42.4%
|
|
Operating income
|
21,206
|
13,641
|
55.5%
|
|
Non-GAAP operating
income(1)
|
24,564
|
18,496
|
32.8%
|
|
Net income per ADS
attributable to New
Oriental - basic(2)
|
0.61
|
0.37
|
65.2%
|
|
Net income per ADS
attributable to New
Oriental - diluted(2)
|
0.60
|
0.36
|
66.4%
|
|
Non-GAAP net income per
ADS attributable to New
Oriental - basic(1)
(2)
|
0.69
|
0.50
|
40.0%
|
|
Non-GAAP net income per
ADS attributable to New
Oriental - diluted(1)
(2)
|
0.68
|
0.48
|
40.9%
|
|
Total student enrollments in
academic subjects tutoring and test preparation courses
|
490,200
|
416,000
|
17.8%
|
|
|
|
|
|
|
|
|
YTD 9-Mo
FY201111
|
YTD 9-Mo
FY201011
|
Pct.
Change
|
|
Net revenues
|
420,486
|
299,726
|
40.3%
|
|
Net income attributable
to New Oriental
|
87,471
|
72,016
|
21.5%
|
|
Non-GAAP net income
attributable to New
Oriental(1)
|
99,109
|
84,935
|
16.7%
|
|
Operating income
|
85,080
|
73,661
|
15.5%
|
|
Non-GAAP operating
income(1)
|
96,718
|
86,580
|
11.7%
|
|
Net income per ADS
attributable to New
Oriental - basic(2)
|
2.29
|
1.91
|
19.6%
|
|
Net income per ADS
attributable to New
Oriental - diluted(2)
|
2.24
|
1.86
|
20.5%
|
|
Non-GAAP net income per
ADS attributable to New
Oriental - basic(1)
(2)
|
2.59
|
2.25
|
14.9%
|
|
Non-GAAP net income per
ADS attributable to New
Oriental - diluted (1)
(2)
|
2.54
|
2.20
|
15.7%
|
|
Total student enrollments in
academic subjects tutoring and test preparation courses
|
1,600,500
|
1,370,500
|
16.8%
|
|
(1) 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 reflect
meaningful 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.
(2) Each ADS
represents four common shares.
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|
|
|
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|
Michael Yu, New Oriental's
Chairman and Chief Executive officer, commented, "We are pleased to
report solid third fiscal quarter results with continued strong
revenue growth of 48.6% and even higher profit growth of 68.1%
year-over-year. The improvement in operating margin and net margin
indicates that substantial progress has been made in improving
operational efficiency through our expense control initiatives
announced last quarter. During this quarter, to effectively cut
costs and expenses and improve utilization of existing facilities,
we strictly controlled the pace of school and learning center
expansion. In this quarter, we only added 1 new school in Nantong
city and a net of 8 learning centers in 7 existing cities, while in
the previous three quarters we built 43, 33 and 24 new learning
centers, respectively as well as 2 new schools in our fiscal first
quarter. We also effectively executed strict control on the hiring
of non-teaching staff. During this quarter, we added a net of about
660 employees, approximately 470 of whom were teachers. Our total
headcount at the end of this quarter was about 21,300, including
about 11,300 teachers. We were also successful in controlling
marketing expenses in the quarter which totaled approximately
$18.3 million, down from
approximately $23.3 million in our
fiscal first quarter and $18.6
million last quarter. Of the $18.3
million spent on marketing, about $7.5 million was for direct brand promotion
spending, which was not headcount-related. This represented an
increase of 12% from approximately $6.7
million in the same period a year ago. In the quarters ahead
we will strive to balance rapid expansion to capture the enormous
market opportunity in front of us with continued vigilance towards
expense controls in order to realize operational efficiencies."
Louis T. Hsieh, New Oriental's
President and Chief Financial Officer, stated, "Strong top line
growth was primarily driven by the continued stellar performance of
several key business lines, with year-over-year gross revenue
growth rates of about 55% for overseas test preparation, about 133%
for non-English U-Can all-subjects training and about 140% for VIP
personalized instruction. First, our overseas test preparation
segment maintained strong momentum with year-over-year enrollment
growth of more than 33% to over 73,100 and year-over-year gross
revenue growth of about 55% to about US$43.4
million in this quarter. We remain the dominant player in
the overseas test preparation market in China with approximately US$152 million gross revenues and over 311,000
enrollments in the 12–month period ended February 28, 2011.
Second, our K-12 all-subjects after-school tutoring business
recorded year-over-year enrollment growth of more than 35% to over
290,400 and year-over-year gross revenue growth of over 70% to over
US$46 million in this quarter. It has
been almost three years since we launched our non-English U-Can
all-subjects business and we continue to experience extremely
strong demand, recording year-over-year enrollment growth of more
than 83% to over 66,900 and year-over-year gross revenue growth of
over 133% to over US$18 million in
this quarter. We are the leading service provider in the K-12
all-subjects after-school tutoring market in China with approximately US$173 million of gross revenues and
approximately 996,500 enrollments in the 12-month period ending
February 28, 2011."
Mr. Hsieh continued, "Our VIP (one-to-maximum five) personalized
courses continue to gain popularity with year-over-year enrollment
growth of more than 68% to over 15,700 and year-over-year gross
revenue growth of over 140% to about US$31
million in this quarter. In the 12-month period ended
February 28, 2011, our VIP
personalized courses recorded over US$104
million gross revenues and over 58,300 enrollments."
Financial Results for the Fiscal Quarter Ended February 28, 2011
For the third quarter of fiscal year 2011, New Oriental reported
net revenues of US$132.5 million,
representing a 48.6% increase year-over-year.
Net revenues from educational programs and services for the
third fiscal quarter were US$122.6
million, representing a 48.6% increase year-over-year. The
growth was mainly driven by the increase in number of student
enrollments in academic subjects tutoring and test preparation
courses and higher average selling prices (ASPs) resulting from
students selecting more expensive, smaller class options. Total
student enrollments in academic subjects tutoring and test
preparation courses in the third quarter of fiscal year 2011
increased by 17.8% year-over-year to approximately 490,200 from
approximately 416,000 in the same period of the prior fiscal
year.
Operating costs and expenses for the quarter were US$111.3 million, a 47.4% increase
year-over-year. Non-GAAP operating costs and expenses, which
exclude share-based compensation expenses, for the quarter were
US$108.0 million, a 52.8% increase
year-over-year.
Cost of revenues for the quarter increased by 55.0%
year-over-year to US$54.9 million,
primarily due to the increased number of courses and the greater
number of schools and learning centers in operation.
Selling and marketing expenses for the quarter increased by
32.5% year-over-year to US$18.3
million, primarily due to the addition of over 900 customer
service representatives and marketing staff in the 12-month period
ended February 28, 2011.
General and administrative expenses for the quarter increased by
44.9% year-over-year to US$38.0
million. Non-GAAP general and administrative expenses, which
exclude share-based compensation expenses, were US$34.9 million, a 61.1% increase year-over-year,
primarily due to increased headcount as the Company expanded its
network of schools and learning centers.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, decreased by 30.8% to
US$3.4 million in the third quarter
of fiscal year 2011 from US$4.9
million in the same period of the prior fiscal year.
Income from operations for the quarter was US$21.2 million, a 55.5% increase from
US$13.6 million in the same period of
the prior fiscal year. Non-GAAP income from operations for the
quarter was US$24.6 million, a 32.8%
increase from US$18.5 million in the
same period of the prior fiscal year.
Operating margin for the quarter was 16.0%, compared to 15.3% in
the same period of the prior fiscal year. Non-GAAP operating
margin, which excludes share-based compensation expenses, for the
quarter was 18.5%, compared to 20.7% in the same period of the
prior fiscal year.
Net income attributable to New Oriental for the quarter was
US$23.3 million, representing a 68.1%
increase from the same period of the prior fiscal year. Basic and
diluted net income per ADS attributable to New Oriental were
US$0.61 and US$0.60, respectively.
Non-GAAP net income attributable to New Oriental for the quarter
was US$26.6 million, representing a
42.4% increase from the same period of the prior fiscal year.
Non-GAAP basic and diluted net income per ADS attributable to New
Oriental were US$0.69 and
US$0.68, respectively.
Capital expenditures for the quarter were US$9.0 million, primarily used to add one school
and a net of 8 learning centers.
As of February 28, 2011, New
Oriental had cash and cash equivalents of US$348.0 million, as compared to US$248.1 million as of November 30, 2010. In addition, the Company had
US$190.6 million in term deposits at
the end of the quarter. Net operating cash flow for the third
quarter of fiscal year 2011 was approximately US$40.1 million.
The deferred revenue balance, which is cash collected from
registered students for courses and is recognized proportionally as
revenue as the instructions are delivered, at the end of the third
quarter of fiscal year 2011 was US$150.7
million, an increase of 115.9% as compared to US$69.8 million at the end of the third quarter
of fiscal year 2010.
Financial Results for the Nine Months Ended February 28, 2011
For the first nine months of fiscal year 2011, New Oriental
reported net revenues of US$420.5
million, representing a 40.3% increase year-over-year.
Total student enrollments in academic subjects tutoring and test
preparation courses in the first nine months of fiscal year 2011
increased by 16.8% to approximately 1,600,500 from approximately
1,370,500 in the same period of the prior fiscal year.
Income from operations for the first nine months of fiscal year
2011 was US$85.1 million,
representing a 15.5% increase year-over-year. Non-GAAP income from
operations for the first nine months of fiscal year 2011 was
US$96.7 million, representing a 11.7%
increase year-over-year.
Operating margin for the first nine months of fiscal year 2011
was 20.2%, compared to 24.6% for the same period of the prior
fiscal year. Non-GAAP operating margin, which excludes share-based
compensation expenses, for the first nine months of fiscal year
2011 was 23.0%, compared to 28.9% for the same period of the prior
fiscal year.
Net income attributable to New Oriental for the first nine
months of fiscal year 2011 was US$87.5
million, representing a 21.5% increase year-over-year. Basic
and diluted net income per ADS attributable to New Oriental for the
first nine months of fiscal year 2011 amounted to US$2.29 and US$2.24, respectively.
Non-GAAP net income attributable to New Oriental for the first
nine months of fiscal year 2011 was US$99.1
million, representing a 16.7% increase year-over-year.
Non-GAAP basic and diluted net income per ADS attributable to New
Oriental for the first nine months of fiscal year 2011 amounted to
US$2.59 and US$2.54, respectively.
Outlook for Fourth Quarter of Fiscal Year 2011
New Oriental expects its total net revenues in the fourth
quarter of fiscal year 2011 (March 1,
2011 to May 31, 2011) to be in
the range of US$114.3 million to US$118.6
million, representing year-over-year growth in the range of
32% to 37%. 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 April 27, 2011 U.S. Eastern Time (8 PM on April 27,
2011 Beijing/Hong Kong
time).
Dial-in details for the earnings conference call are as
follows:
|
|
US:
|
+1-857-350-1603
|
|
Hong Kong:
|
+852-3002-1672
|
|
UK:
|
+44-207-365-8426
|
|
|
|
|
|
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 May 5,
2011:
|
|
International:
|
+1-617-801-6888
|
|
Passcode:
|
14935611
|
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|
|
|
|
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
four common shares, currently trade on the New York Stock Exchange
under the symbol ''EDU.''
For more information about New Oriental, please visit
http://english.neworiental.org.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the outlook for the fourth quarter of fiscal year 2011 and
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.
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Contacts
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For investor and media
inquiries, please contact:
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|
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In China:
|
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|
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Ms. Sisi Zhao
|
|
New Oriental Education and
Technology Group Inc.
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|
Tel:
+86-10-6260-5568
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Email:
zhaosisi@xdf.cn
|
|
|
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Mr. Henry
Fraser
|
|
Beijing Brunswick
Consultancy Ltd.
|
|
Tel:
+86-10-5960 8613
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|
Email:
hfraser@brunswickgroup.com
|
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|
In the U.S.:
|
|
|
|
Ms. Kate
Tellier
|
|
Brunswick Group
LLC
|
|
Tel: +1-212
333 3810
|
|
Email:
ktellier@brunswickgroup.com
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NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
thousands)
|
|
|
As of
February 28
|
|
As of
November 30
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
RMB
|
|
ASSETS:
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
348,046
|
|
248,110
|
|
Restricted cash
|
2,998
|
|
622
|
|
Term deposits
|
190,622
|
|
255,791
|
|
Accounts receivable,
net
|
2,390
|
|
2,425
|
|
Inventory
|
17,307
|
|
17,345
|
|
Deferred tax
assets-Current
|
3,511
|
|
3,134
|
|
Prepaid expenses and other
current assets
|
31,487
|
|
28,308
|
|
|
|
|
|
|
Total current
assets
|
596,361
|
|
555,735
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
153,338
|
|
142,103
|
|
Land use right,
net
|
3,474
|
|
3,445
|
|
Amounts due from related
parties
|
-
|
|
405
|
|
Deferred tax
assets
|
985
|
|
810
|
|
Long term
deposit
|
6,941
|
|
9,694
|
|
Long term prepaid
rent
|
2,754
|
|
2,957
|
|
Intangible
assets
|
5,364
|
|
5,056
|
|
Goodwill
|
8,670
|
|
8,544
|
|
Long term
investment
|
2
|
|
2
|
|
|
|
|
|
|
Total assets
|
777,889
|
|
728,751
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable
(including accounts payable of the consolidated VIEs without
recourse to New Oriental of US$ 10,355 and US$ 8,994 as of
November 30, 2010 and February 28, 2011,
respectively)
|
9,001
|
|
10,388
|
|
Accrued expenses and other
current liabilities (including accrued expenses and other current
liabilities of the consolidated VIEs without recourse to New
Oriental of US$ 49,215 and US$ 53,998 as of November 30, 2010 and
February 28, 2011, respectively)
|
57,416
|
|
53,095
|
|
Income tax payable
(including income tax payable of the consolidated VIEs without
recourse to New Oriental of US$ 5,692 and US$ 5,202 as of November
30, 2010 and February 28, 2011, respectively)
|
6,648
|
|
6,989
|
|
Acquisition payable
(including acquisition payable of the consolidated VIEs without
recourse to New Oriental of US$ 4,124 and US$ 4,184 as of November
30, 2010 and February 28, 2011, respectively)
|
4,184
|
|
4,124
|
|
Deferred revenue
(including deferred revenue of the consolidated VIEs without
recourse to New Oriental of US$ 136,969 and US$ 149,664 as of
November 30, 2010 and February 28, 2011, respectively)
|
150,652
|
|
137,910
|
|
|
|
|
|
|
Total current
liabilities
|
227,901
|
|
212,506
|
|
|
|
|
|
|
Deferred tax
liabilities
|
1,178
|
|
1,203
|
|
|
|
|
|
|
Total long-term
liabilities
|
1,178
|
|
1,203
|
|
|
|
|
|
|
Total liabilities
|
229,079
|
|
213,709
|
|
|
|
|
|
|
Total New Oriental Education
& Technology Group Inc. shareholders' equity
|
548,810
|
|
515,269
|
|
|
|
|
|
|
Noncontrolling
interests
|
-
|
|
(227)
|
|
|
|
|
|
|
Total equity
|
548,810
|
|
515,042
|
|
|
|
|
|
|
Total liabilities and
equity
|
777,889
|
|
728,751
|
|
|
|
|
|
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 February 28
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
Net Revenues:
|
|
|
|
|
Educational Programs and
services
|
122,635
|
|
82,552
|
|
Books and
others
|
9,883
|
|
6,615
|
|
Total net
revenues
|
132,518
|
|
89,167
|
|
|
|
|
|
|
Operating costs and expenses
(note 1):
|
|
|
|
|
Cost of
revenues
|
54,922
|
|
35,430
|
|
Selling and
marketing
|
18,348
|
|
13,848
|
|
General and
administrative
|
38,042
|
|
26,248
|
|
|
|
|
|
|
Total operating costs and
expenses
|
111,312
|
|
75,526
|
|
Operating income
|
21,206
|
|
13,641
|
|
|
|
|
|
|
Other income, net
|
3,952
|
|
1,561
|
|
|
|
|
|
|
Provision (benefits) for
income taxes
|
(1,884)
|
|
(1,438)
|
|
Less: Net income
attributable to the noncontrolling interests
|
-
|
|
79
|
|
Net income attributable to New
Oriental Education & Technology Group Inc.
|
23,274
|
|
13,843
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to New Oriental-Basic
|
0.15
|
|
0.09
|
|
Net income per share
attributable to New Oriental-Diluted
|
0.15
|
|
0.09
|
|
|
|
|
|
|
Net income per ADS attributable
to New Oriental-Basic (note 2)
|
0.61
|
|
0.37
|
|
Net income per ADS attributable
to New Oriental-Diluted (note 2)
|
0.60
|
|
0.36
|
|
|
|
|
|
Notes:
Note 1: Share-based compensation expenses (in thousands) are
included in the operating costs and expenses as follows:
|
For the
Three Months Ended February 28
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
Cost of revenues
|
223
|
|
269
|
|
Selling and marketing
|
-
|
|
9
|
|
General and
administrative
|
3,135
|
|
4,577
|
|
Total
|
3,358
|
|
4,855
|
|
|
|
|
|
|
|
Note 2: Each ADS represents four common shares.
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 February 28
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
|
|
|
|
|
General and administrative
expenses
|
38,042
|
|
26,248
|
|
Share-based compensation
expense in general and administrative expenses
|
3,135
|
|
4,577
|
|
Non-GAAP general and
administrative expenses
|
34,907
|
|
21,671
|
|
|
|
|
|
|
Total operating costs and
expenses
|
111,312
|
|
75,526
|
|
Share-based compensation
expenses
|
3,358
|
|
4,855
|
|
Non-GAAP operating costs
and expenses
|
107,954
|
|
70,671
|
|
|
|
|
|
|
Operating
income
|
21,206
|
|
13,641
|
|
Share-based compensation
expenses
|
3,358
|
|
4,855
|
|
Non-GAAP operating
income
|
24,564
|
|
18,496
|
|
|
|
|
|
|
Operating
margin
|
16.0%
|
|
15.3%
|
|
Non-GAAP operating
margin
|
18.5%
|
|
20.7%
|
|
|
|
|
|
|
Net income attributable to
New Oriental
|
23,274
|
|
13,843
|
|
Share-based compensation
expense
|
3,358
|
|
4,855
|
|
Non-GAAP net
income
|
26,632
|
|
18,698
|
|
|
|
|
|
|
Net income per ADS
attributable to New Oriental- Basic (note 1)
|
0.61
|
|
0.37
|
|
Net income per ADS
attributable to New Oriental- Diluted (note 1)
|
0.60
|
|
0.36
|
|
|
|
|
|
|
Non-GAAP net income per
ADS attributable to New Oriental - Basic (note 1)
|
0.69
|
|
0.50
|
|
Non-GAAP net income per
ADS attributable to New Oriental - Diluted (note 1)
|
0.68
|
|
0.48
|
|
|
|
|
|
|
Weighted average shares
used in calculating basic net income per ADS (note 1)
|
153,644,538
|
|
150,993,483
|
|
Weighted average shares
used in calculating diluted net income per ADS (note 1)
|
156,233,320
|
|
154,596,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: Each ADS represents four
common shares.
|
|
|
|
|
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In
thousands except for per share and per ADS amounts)
|
|
|
|
|
|
|
|
For the Nine
Months Ended February 28
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
Net Revenues:
|
|
|
|
|
Educational Programs and
services
|
388,020
|
|
278,554
|
|
Books and
others
|
32,466
|
|
21,172
|
|
Total net
revenues
|
420,486
|
|
299,726
|
|
|
|
|
|
|
Operating costs and expenses
(note 1):
|
|
|
|
|
Cost of
revenues
|
165,934
|
|
110,905
|
|
Selling and
marketing
|
60,247
|
|
41,034
|
|
General and
administrative
|
109,225
|
|
74,126
|
|
|
|
|
|
|
Total operating costs and
expenses
|
335,406
|
|
226,065
|
|
Operating income
|
85,080
|
|
73,661
|
|
|
|
|
|
|
Other income, net
|
9,860
|
|
4,659
|
|
|
|
|
|
|
Provision (benefits) for
income taxes
|
(7,704)
|
|
(6,708)
|
|
Less: Net income
attributable to the noncontrolling interests
|
235
|
|
404
|
|
Net income attributable to New
Oriental Education & Technology Group Inc.
|
87,471
|
|
72,016
|
|
|
|
|
|
|
Net income per share
attributable to New Oriental-Basic
|
0.57
|
|
0.48
|
|
Net income per share
attributable to New Oriental-Diluted
|
0.56
|
|
0.47
|
|
|
|
|
|
|
Net income per ADS attributable
to New Oriental-Basic (note 2)
|
2.29
|
|
1.91
|
|
Net income per ADS attributable
to New Oriental-Diluted (note 2)
|
2.24
|
|
1.86
|
|
|
|
|
|
Notes:
Note 1: Share-based compensation expenses (in thousands) are
included in the operating costs and expenses as follows:
|
For the Nine
Months Ended February 28
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
Cost of revenues
|
675
|
|
635
|
|
Selling and marketing
|
-
|
|
115
|
|
General and
administrative
|
10,963
|
|
12,169
|
|
Total
|
11,638
|
|
12,919
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 2: Each ADS represents four common shares.
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 Nine
Months Ended February 28
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
|
|
|
|
|
General and administrative
expenses
|
109,225
|
|
74,126
|
|
Share-based compensation
expense in general and administrative expenses
|
10,963
|
|
12,169
|
|
Non-GAAP general and
administrative expenses
|
98,262
|
|
61,957
|
|
|
|
|
|
|
Total operating costs and
expenses
|
335,406
|
|
226,065
|
|
Share-based compensation
expenses
|
11,638
|
|
12,919
|
|
Non-GAAP operating costs
and expenses
|
323,768
|
|
213,146
|
|
|
|
|
|
|
Operating
income
|
85,080
|
|
73,661
|
|
Share-based compensation
expenses
|
11,638
|
|
12,919
|
|
Non-GAAP operating
income
|
96,718
|
|
86,580
|
|
|
|
|
|
|
Operating
margin
|
20.2%
|
|
24.6%
|
|
Non-GAAP operating
margin
|
23.0%
|
|
28.9%
|
|
|
|
|
|
|
Net income attributable to
New Oriental
|
87,471
|
|
72,016
|
|
Share-based compensation
expense
|
11,638
|
|
12,919
|
|
Non-GAAP net
income
|
99,109
|
|
84,935
|
|
|
|
|
|
|
Net income per ADS
attributable to New Oriental- Basic (note 1)
|
2.29
|
|
1.91
|
|
Net income per ADS
attributable to New Oriental- Diluted (note 1)
|
2.24
|
|
1.86
|
|
|
|
|
|
|
Non-GAAP net income per
ADS attributable to New Oriental - Basic (note 1)
|
2.59
|
|
2.25
|
|
Non-GAAP net income per
ADS attributable to New Oriental - Diluted (note 1)
|
2.54
|
|
2.20
|
|
|
|
|
|
|
Weighted average shares
used in calculating basic net income per ADS (note 1)
|
153,049,637
|
|
150,754,539
|
|
Weighted average shares
used in calculating diluted net income per ADS (note 1)
|
155,936,707
|
|
154,681,104
|
|
|
|
|
|
|
Note 1: Each ADS
represents four common
shares.
|
|
|
|
|
|
SOURCE New Oriental Education and Technology Group Inc.