BEIJING, Jan. 17, 2012 /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
November 30, 2011, which is the
second quarter of New Oriental's fiscal year 2012.
Highlights for the Second Fiscal Quarter Ended November 30, 2011
- Total net revenues increased by 38.0% year-over-year to
US$132.0 million from US$95.7 million in the same period of the prior
fiscal year.
- Net income attributable to New Oriental increased by 80.5%
year-over-year to US$3.3 million from
US$1.8 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 46.0%
year-over-year to US$7.5 million from
US$5.2 million in the same period of
the prior fiscal year.
- Loss from operations increased by 94.6% year-over-year to
US$4.0 million from US$2.1 million in the same period of the prior
fiscal year.
- Non-GAAP income from operations, which excludes share-based
compensation expenses, decreased by 81.2% year-over-year to
US$0.2 million from US$1.3 million in the same period of the prior
fiscal year.
- Basic and diluted net income attributable to New Oriental per
ADS were US$0.02 and US$0.02, respectively. Non-GAAP basic and diluted
net income per ADS, which excludes share-based compensation
expenses, were US$0.05 and
US$0.05, respectively. Each ADS
represents one common share of the Company.
- Total student enrollments in academic subjects tutoring and
test preparation courses increased by 16.2% year-over-year to
approximately 471,600 from approximately 405,800 in the same period
of the prior fiscal year.
- Total number of schools and learning centers increased to 527
in the quarter ended November 30,
2011, up from 488 in the previous quarter. New Oriental
built a net of 39 learning centers in the quarter.
Financial and Student Enrollments Summary – Second Fiscal
Quarter 2012 and First Six Months of Fiscal Year 2012
(in thousands US$, except per ADS data, student enrollments and
percentages)
|
Q2 of
FY2012
|
Q2 of
FY2011
|
Pct.
Change
|
Net
revenues
|
131,981
|
95,660
|
38.0%
|
Net income
attributable to New Oriental
|
3,314
|
1,836
|
80.5%
|
Non-GAAP
net income attributable to New Oriental(1)
|
7,545
|
5,168
|
46.0%
|
Operating
income/(loss)
|
(3,990)
|
(2,050)
|
94.6%
|
Non-GAAP
operating income(1)
|
241
|
1,282
|
-81.2%
|
Net income
per ADS attributable to New Oriental -
basic(2)
|
0.02
|
0.01
|
79.0%
|
Net income
per ADS attributable to New Oriental -
diluted(2)
|
0.02
|
0.01
|
79.6%
|
Non-GAAP
net income per ADS attributable to New Oriental -
basic(1)(2)(3)
|
0.05
|
0.03
|
44.8%
|
Non-GAAP
net income per ADS attributable to New Oriental -
diluted(1)(2)(3)
|
0.05
|
0.03
|
45.2%
|
Total
student enrollments in academic subjects tutoring and test
preparation courses
|
471,600
|
405,800
|
16.2%
|
|
1H of
FY2012
|
1H of
FY2011
|
Pct.
Change
|
Net
revenues
|
403,961
|
287,968
|
40.3%
|
Net income
attributable to New Oriental
|
94,023
|
64,197
|
46.5%
|
Non-GAAP
net income attributable to New Oriental (1)
|
105,069
|
72,477
|
45.0%
|
Operating
income/(loss)
|
90,775
|
63,874
|
42.1%
|
Non-GAAP
operating income (1)
|
101,821
|
72,154
|
41.1%
|
Net income
per ADS attributable to New Oriental - basic
(2)
|
0.61
|
0.42
|
44.9%
|
Net income
per ADS attributable to New Oriental - diluted
(2)
|
0.60
|
0.41
|
45.6%
|
Non-GAAP
net income per ADS attributable to New Oriental - basic
(1)(2)(3)
|
0.68
|
0.47
|
43.4%
|
Non-GAAP
net income per ADS attributable to New Oriental - diluted
(1)(2)(3)
|
0.67
|
0.47
|
44.1%
|
Total
student enrollments in academic subjects tutoring and test
preparation courses
|
1,279,300
|
1,110,300
|
15.2%
|
(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 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.
(2)
Each ADS represents one common share.
(3) The Non-GAAP adjusted net income per
share and per ADS are computed using Non-GAAP adjusted net income
and the same number of shares and ADSs used in GAAP basic and
diluted EPS calculation.
|
Michael Yu, New Oriental's
Chairman and Chief Executive Officer, commented, "In the second
quarter of the fiscal year, which is our seasonally slowest
quarter, we posted solid revenue growth of 38.0% and even higher
profit growth of 80.5% year-over-year. This is particularly
pleasing considering we had very challenging comparables against
last year's fiscal second quarter when we experienced a strong
bounce back from the negative effect on our business due to the
Shanghai World Expo in the summer of 2010 and recorded
exceptionally strong revenue growth of over 56% and student
enrollment growth of over 32%. In this fiscal quarter, by
comparison, our student enrollments grew by 16.2% to about 471,600.
To meet the continued strong market demand, especially in the K-12
after-school tutoring segment, during this quarter we opened a net
of 39 learning centers in about 20 existing cities. More than
half of these are small facilities of approximately 500 square
meters or less, which is in line with our strategy to "fill in" the
convenient locations in markets where we have a strong
presence."
Mr. Yu continued, "Although spending on educational services
remains resilient and demand for New Oriental's educational
services, in particular, continues to be very strong in the face of
a slowing Chinese economy, we do expect the early timing of this
year's Chinese New Year festival,
which falls on January 23, to have a
negative impact on our net revenues and profits for our third
fiscal quarter ending February 28,
2012. Since the festival falls earlier this year, the 2012
Chinese New Year winter holiday for
school-aged students has been shortened by up to a week in most
provinces, leaving students with less time to attend New Oriental
classes. We experienced a similar situation in 2009 when
Chinese New Year also fell early, on
January 26. However, in 2009 we saw a
very strong bounce back in the fourth fiscal quarter ending
May 31, with revenues up
approximately 48% and net income up approximately 50% as Chinese
students preparing to take the college and high school entrance
exams in early June returned to New Oriental to make up for the
test prep classes normally taken during the winter break. We
anticipate a similar effect this year, and we are hopeful of a
strong rebound in New Oriental's business in our fiscal fourth
quarter this year."
Louis T. Hsieh, New Oriental's
President and Chief Financial Officer, commented, "We are delighted
to record solid performances across each of our key business lines
this quarter. First, our overseas test preparation programs
recorded year-over-year gross revenue growth of over 52% to over
US$43 million and year-over-year
enrollment growth of about 1% to 74,200, despite difficult
comparisons to the second quarter of the previous fiscal year when
the post-Expo rebound drove enrollments up by 39%. Second, our K-12
all-subjects after-school tutoring business recorded year-over-year
gross revenue growth of about 45% to over US$44 million and year-over-year enrollment
growth of more than 33% to over 232,900. Third, our VIP
personalized classes experienced the most rapid pace of growth,
with year-over-year cash revenue growing by more than 52% to over
US$45 million and year-over-year
enrollments increasing by about 42% to over 20,100. Finally, our
Vision Overseas Study Consulting business maintained strong
momentum, with year-over-year revenue growth of over 90% to about
US$3.8 million."
Financial Results for the Fiscal Quarter Ended November 30, 2011
For the second fiscal quarter of 2012, New Oriental reported net
revenues of US$132.0 million,
representing a 38.0% increase year-over-year.
Net revenues from educational programs and services for the
second fiscal quarter were US$120.1
million, representing a 42.1% increase year-over-year.
Growth was mainly driven by an increase in student enrollments in
academic subjects tutoring and test preparation courses, as well as
an increase in average selling prices resulting from price
increases and an increase in the number of students selecting more
expensive, smaller class options. Total student enrollments in
academic subjects tutoring and test preparation courses in the
second quarter of fiscal year 2012 increased by 16.2%
year-over-year to approximately 471,600, from approximately 405,800
in the same period of the prior fiscal year.
Operating costs and expenses for the quarter were US$136.0 million, a 39.2% increase
year-over-year. Non-GAAP operating costs and expenses, which
exclude share-based compensation expenses, for the quarter were
US$131.7 million, a 39.6% increase
year-over-year.
Cost of revenues for the quarter increased by 37.2%
year-over-year to US$61.2 million,
primarily due to increases in the number of courses being offered
and the number of schools and learning centers in operation.
Selling and marketing expenses for the quarter increased by
32.3% year-over-year to US$24.5
million, primarily due to brand promotion expenses.
General and administrative expenses for the quarter increased by
45.4% year-over-year to US$50.3
million. Non-GAAP general and administrative expenses, which
excludes share-based compensation expenses, were US$46.0 million, a 46.4% increase year-over-year,
primarily due to increased headcount as the Company expanded its
network of schools and learning centers by a net of 39 facilities
in the quarter, and invested in content and new program development
offerings, as well as in improving teacher training resources.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, increased by 27.0% to
US$4.2 million in the second quarter
of fiscal year 2012 from US$3.3
million in the same period of the prior fiscal year.
Loss from operations for the quarter was US$4.0 million, a 94.6% increase from a loss from
operations of US$2.1 million in the
same period of the prior fiscal year. Non-GAAP income from
operations for the quarter was US$0.2
million, an 81.2% decrease from US$1.3 million in the same period of the prior
fiscal year.
Operating margin for the quarter was negative 3.0%, compared to
negative 2.1% in the same period of the prior fiscal year. Non-GAAP
operating margin, which excludes the impact of share-based
compensation expenses, for the quarter was 0.2%, compared to 1.3%
in the same period of the prior fiscal year.
Other income for the quarter increased by 82.0% year-over-year
to US$6.4 million, primarily due to
an increase in interest income resulting from higher cash deposits
and higher savings interest rates.
Net income attributable to New Oriental for the quarter was
US$3.3 million, representing an 80.5%
increase from the same period of the prior fiscal year. Basic and
diluted earnings per ADS attributable to New Oriental were
US$0.02 and US$0.02, respectively.
Non-GAAP net income attributable to New Oriental for the quarter
was US$7.5 million, representing a
46.0% increase from the same period of the prior fiscal year.
Non-GAAP basic and diluted earnings per ADS attributable to New
Oriental were US$0.05 and
US$0.05, respectively.
Capital expenditures for the quarter were US$13.1 million, which were primarily attributed
to the addition of learning centers.
As of November 30, 2011, New
Oriental had cash and cash equivalents of US$379.2 million, as compared to US$398.4 million as of August 31, 2011. In addition, the Company had
US$93.4 million in term deposits and
US$233.0 million in short term
investment as of November 30, 2011.
Net operating cash flow for the second quarter of fiscal year 2012
was approximately US$12.4
million.
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, as of November 30, 2011, was US$201.8 million, an increase of 46.3% as
compared to US$137.9 million as of
November 30, 2010.
Financial Results for the Six Months Ended November 30, 2011
For the first six months of fiscal year
2012, New Oriental reported net revenues of US$404.0 million, representing a 40.3% increase
year-over-year.
Total student enrollments in academic
subjects tutoring and test preparation courses in the first six
months of fiscal year 2012 increased by 15.2% to approximately
1,279,300 from approximately 1,110,300 in the same period of the
prior fiscal year.
Income from operations for the first
six months of fiscal year 2012 was US$90.8
million, representing a 42.1% increase year-over-year.
Non-GAAP income from operations for the first six months of fiscal
year 2012 was US$101.8 million,
representing a 41.1% increase year-over-year.
Operating margin for the first six
months of fiscal year 2012 was 22.5%, compared to 22.2% for the
same period of the prior fiscal year. Non-GAAP operating margin,
which excludes share-based compensation expenses, for the first six
months of fiscal year 2012 was 25.2%, compared to 25.1% for the
same period of the prior fiscal year.
Net income attributable to New Oriental
for the first six months of fiscal year 2012 was US$94.0 million, representing a 46.5% increase
year-over-year. Basic and diluted net income per ADS attributable
to New Oriental for the first six months of fiscal year 2012
amounted to US$0.61 and US$0.60, respectively.
Non-GAAP net income attributable to New
Oriental for the first six months of fiscal year 2012 was
US$105.1 million, representing a
45.0% increase year-over-year. Non-GAAP basic and diluted net
income per ADS attributable to New Oriental for the first six
months of fiscal year 2012 amounted to US$0.68 and US$0.67, respectively.
Outlook for Third Quarter of Fiscal Year 2012
New Oriental expects its total net revenues in the third quarter
of fiscal year 2012 (December 1,
2011, to February 29, 2012) to
be in the range of US$168.3 million to
US$176.2 million, representing year-over-year growth in the
range of 27.0% to 33.0%. This revenue outlook reflects the
anticipated negative impact on the Company's business of the early
timing of Chinese New Year, which
falls on January 23 this year. 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 January 17, 2012, U.S. Eastern Time (9 PM on January 17,
2012, Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as
follows:
US:
|
+1-718-354-1231
|
Hong Kong:
|
+852-2475-0994
|
UK:
|
+44-203-0598-139
|
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 January 22,
2012:
International:
|
+61-2-8235-5000
|
Passcode:
|
39868206
|
Additionally, a live and archived webcast of the conference call
will be available at http://investor.neworiental.org.
About New Oriental
New Oriental is the largest provider of private educational
services in China based on the
number of program offerings, total student enrollments and
geographic presence. New Oriental offers a wide range of
educational programs, services and products consisting primarily of
English and other foreign language training, test preparation
courses for major admissions and assessment tests in the United States, the PRC and Commonwealth
countries, primary and secondary school education, development and
distribution of educational content, software and other technology,
and online education. New Oriental's ADSs, each of which represents
one common share, currently trade on the New York Stock Exchange
under the symbol ''EDU.''
For more information about New Oriental, please visit
http://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 third quarter of fiscal year 2012 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.
Contacts
For investor and media inquiries, please contact:
In China:
Ms. Sisi Zhao
New Oriental Education and Technology Group Inc.
Tel: +86-10-6260-5568
Email: zhaosisi@xdf.cn
Mr. Martin Reidy
Beijing Brunswick Consultancy Ltd.
Tel: +86-10-5960-8616
Email: mreidy@brunswickgroup.com
In the U.S.:
Ms. Cindy Zheng
Brunswick Group LLC
Tel: +1-212-333-3810
Email: czheng@brunswickgroup.com
NEW
ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(In
thousands)
|
|
As of
November 30
|
|
As of
Auguest 31
|
2011
|
|
2011
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
379,179
|
|
398,389
|
Restricted
cash
|
2,943
|
|
4,588
|
Term
deposits
|
93,374
|
|
103,822
|
Short term
investment (note1)
|
232,970
|
|
203,832
|
Accounts
receivable, net
|
2,886
|
|
2,924
|
Inventory
|
17,238
|
|
17,468
|
Deferred
tax assets-Current
|
5,275
|
|
4,853
|
Prepaid
expenses and other current assets
|
49,904
|
|
43,633
|
|
|
|
|
Total
current assets
|
783,769
|
|
779,509
|
|
|
|
|
Property,
plant and equipment, net
|
176,705
|
|
170,727
|
Land use
right, net
|
3,515
|
|
3,536
|
Deferred
tax assets
|
1,272
|
|
1,215
|
Long term
deposit
|
11,272
|
|
8,749
|
Long term
prepaid rent
|
2,320
|
|
2,581
|
Intangible
assets
|
858
|
|
871
|
Goodwill
|
1,796
|
|
1,796
|
Long term
investment
|
2,002
|
|
2
|
|
|
|
|
Total
assets
|
983,509
|
|
968,986
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable (including accounts payable of the consolidated
VIEs without recourse to New Oriental of US$ 7,944 and US$
8,297 as of Augest 31, 2011 and November 30, 2011,
respectively)
|
8,458
|
|
8,357
|
Accrued
expenses and other current liabilities (including accrued
expenses and other current liabilities of the consolidated VIEs
without recourse to New Oriental of US$ 79,442 and US$
63,703
as of Augest 31, 2011 and November 30, 2011,
respectively)
|
73,760
|
|
90,236
|
Income tax
payable (including income tax payable of the
consolidated VIEs without recourse to New Oriental of US$
8,620
and US$11,740 as of Augest 31, 2011 and November 30,
2011,
respectively)
|
12,030
|
|
15,026
|
Deferred
revenue (including deferred revenue of the consolidated
VIEs without recourse to New Oriental of US$ 171,817 and US$
199,692 as of Augest 31, 2011 and November 30, 2011,
respectively)
|
201,770
|
|
174,680
|
|
|
|
|
Total
current liabilities
|
296,018
|
|
288,299
|
|
|
|
|
Deferred
tax liabilities
|
117
|
|
120
|
|
|
|
|
Total
long-term liabilities
|
117
|
|
120
|
|
|
|
|
Total
liabilities
|
296,135
|
|
288,419
|
|
|
|
|
Total
shareholder's equity
|
687,374
|
|
680,567
|
|
|
|
|
Total
liabilities and shareholder's equity
|
983,509
|
|
968,986
|
|
|
|
|
Note
1:Short term investment represented held-to-maturity investment
with maturity of less than one year.
|
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 November 30
|
|
2011
|
|
2010
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
Revenues:
|
|
|
|
Educational Programs and services
|
120,057
|
|
84,504
|
Books and
others
|
11,924
|
|
11,156
|
Total
net revenues
|
131,981
|
|
95,660
|
|
|
|
|
Operating costs and expenses (note
1):
|
|
|
|
Cost of
revenues
|
61,163
|
|
44,591
|
Selling
and marketing
|
24,540
|
|
18,554
|
General
and administrative
|
50,268
|
|
34,565
|
Total
operating costs and expenses
|
135,971
|
|
97,710
|
Operating loss
|
(3,990)
|
|
(2,050)
|
|
|
|
|
Other
income, net
|
6,382
|
|
3,507
|
|
|
|
|
Benefits
for income taxes
|
922
|
|
296
|
Net
income
|
3,314
|
|
1,753
|
|
|
|
|
Less: Net
income attributable to the noncontrolling interests
|
-
|
|
83
|
|
|
|
|
Net
income attributable to New Oriental Education &
Technology Group Inc.
|
3,314
|
|
1,836
|
|
|
|
|
Net income
per share attributable to New Oriental-Basic
|
0.02
|
|
0.01
|
Net income
per share attributable to New Oriental-Diluted
|
0.02
|
|
0.01
|
|
|
|
|
Net income
per ADS attributable to New Oriental-Basic (note 2)
|
0.02
|
|
0.01
|
Net income
per ADS attributable to New Oriental-Diluted (note 2)
|
0.02
|
|
0.01
|
Notes:
|
|
|
|
|
Note 1:
Share-based compensation expenses (in thousands) are included in
the operating costs and expenses as follows:
|
|
|
|
|
|
For the
Three Months Ended November 30
|
|
2011
|
|
2010
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
-
|
|
220
|
Selling
and marketing
|
-
|
|
-
|
General
and administrative
|
4,231
|
|
3,112
|
Total
|
4,231
|
|
3,332
|
|
|
|
|
|
Note 2:
Each ADS represents one common share.
|
NEW
ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST
COMPARABLE GAAP MEASURES
|
(In
thousands except for per share and per ADS amounts)
|
|
|
|
For the
Three Months Ended November 30
|
|
2011
|
|
2010
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General
and administrative expenses
|
50,268
|
|
34,565
|
Share-based compensation expense in
general and administrative expenses
|
4,231
|
|
3,112
|
Non-GAAP
general and administrative
expenses
|
46,037
|
|
31,453
|
|
|
|
|
Total
operating costs and expenses
|
135,971
|
|
97,710
|
Share-based compensation expenses
|
4,231
|
|
3,332
|
Non-GAAP
operating costs and
expenses
|
131,740
|
|
94,378
|
|
|
|
|
Operating
income(loss)
|
(3,990)
|
|
(2,050)
|
Share-based compensation expenses
|
4,231
|
|
3,332
|
Non-GAAP
operating income
|
241
|
|
1,282
|
|
|
|
|
Operating
margin
|
-3.0%
|
|
-2.1%
|
Non-GAAP
operating margin
|
0.2%
|
|
1.3%
|
|
|
|
|
Net income
attributable to New Oriental
|
3,314
|
|
1,836
|
Share-based compensation expense
|
4,231
|
|
3,332
|
Non-GAAP
net income
|
7,545
|
|
5,168
|
|
|
|
|
Net income
per ADS attributable to New
Oriental- Basic (note 1)
|
0.02
|
|
0.01
|
Net income
per ADS attributable to New
Oriental- Diluted (note 1)
|
0.02
|
|
0.01
|
|
|
|
|
Non-GAAP
net income per ADS attributable
to New Oriental - Basic (note 1)
|
0.05
|
|
0.03
|
Non-GAAP
net income per ADS attributable
to New Oriental - Diluted (note 1)
|
0.05
|
|
0.03
|
|
|
|
|
Weighted
average shares used in calculating
basic net income per ADS (note 1)
|
154,706,757
|
|
153,431,993
|
Weighted
average shares used in calculating
diluted net income per ADS (note 1)
|
157,000,285
|
|
156,189,905
|
|
|
|
|
Non-GAAP
Income per share - basic
|
0.05
|
|
0.03
|
Non-GAAP
Income per share - diluted
|
0.05
|
|
0.03
|
|
|
|
|
Note 1:
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
Six Months Ended November 30
|
|
2011
|
|
2010
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
Revenues:
|
|
|
|
Educational Programs and services
|
371,952
|
|
265,385
|
Books and
others
|
32,009
|
|
22,583
|
Total
net revenues
|
403,961
|
|
287,968
|
|
|
|
|
Operating costs and expenses (note
1):
|
|
|
|
Cost of
revenues
|
153,890
|
|
111,012
|
Selling
and marketing
|
53,060
|
|
41,899
|
General
and administrative
|
106,236
|
|
71,183
|
Total
operating costs and expenses
|
313,186
|
|
224,094
|
Operating income
|
90,775
|
|
63,874
|
|
|
|
|
Other
income, net
|
11,554
|
|
5,908
|
|
|
|
|
Provision
for income taxes
|
(8,306)
|
|
(5,820)
|
Net
income
|
94,023
|
|
63,962
|
|
|
|
|
Less: Net
income attributable to the noncontrolling interests
|
-
|
|
235
|
|
|
|
|
Net
income attributable to New Oriental Education
& Technology Group Inc.
|
94,023
|
|
64,197
|
|
|
|
|
Net income
per share attributable to New Oriental-Basic
|
0.61
|
|
0.42
|
Net income
per share attributable to New Oriental-Diluted
|
0.60
|
|
0.41
|
|
|
|
|
Net income
per ADS attributable to New Oriental-Basic (note 2)
|
0.61
|
|
0.42
|
Net income
per ADS attributable to New Oriental-Diluted (note 2)
|
0.60
|
|
0.41
|
Notes:
|
|
|
|
|
|
|
|
Note 1:
Share-based compensation expenses (in thousands) are included in
the operating costs and expenses as follows:
|
|
|
|
|
|
For the
Six Months Ended November 30
|
|
2011
|
|
2010
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
216
|
|
452
|
Selling
and marketing
|
-
|
|
-
|
General
and administrative
|
10,830
|
|
7,828
|
Total
|
11,046
|
|
8,280
|
|
|
|
|
|
Note 2:
Each ADS represents one common share.
|
NEW
ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST
COMPARABLE GAAP MEASURES
|
(In
thousands except for per share and per ADS amounts)
|
|
|
|
For the
Six Months Ended November 30
|
|
2011
|
|
2010
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General
and administrative expenses
|
106,236
|
|
71,183
|
Share-based compensation expense in
general and administrative expenses
|
10,830
|
|
7,828
|
Non-GAAP
general and administrative
expenses
|
95,406
|
|
63,355
|
|
|
|
|
Total
operating costs and expenses
|
313,186
|
|
224,094
|
Share-based compensation expenses
|
11,046
|
|
8,280
|
Non-GAAP
operating costs and
expenses
|
302,140
|
|
215,814
|
|
|
|
|
Operating
income(loss)
|
90,775
|
|
63,874
|
Share-based compensation expenses
|
11,046
|
|
8,280
|
Non-GAAP
operating income
|
101,821
|
|
72,154
|
|
|
|
|
Operating
margin
|
22.5%
|
|
22.2%
|
Non-GAAP
operating margin
|
25.2%
|
|
25.1%
|
|
|
|
|
Net income
attributable to New Oriental
|
94,023
|
|
64,197
|
Share-based compensation expense
|
11,046
|
|
8,280
|
Non-GAAP
net income
|
105,069
|
|
72,477
|
|
|
|
|
Net income
per ADS attributable to New
Oriental- Basic (note 1)
|
0.61
|
|
0.42
|
Net income
per ADS attributable to New
Oriental- Diluted (note 1)
|
0.60
|
|
0.41
|
|
|
|
|
Non-GAAP
net income per ADS attributable
to New Oriental - Basic (note 1)
|
0.68
|
|
0.47
|
Non-GAAP
net income per ADS attributable
to New Oriental - Diluted (note 1)
|
0.67
|
|
0.47
|
|
|
|
|
Weighted
average shares used in calculating
basic net income per ADS (note 1)
|
154,377,584
|
|
152,757,063
|
Weighted
average shares used in calculating
diluted net income per ADS (note 1)
|
156,747,335
|
|
155,793,277
|
|
|
|
|
Note 1:
Each ADS represents one common share.
|
SOURCE New Oriental Education and Technology Group Inc.