BEIJING, Oct. 23, 2018 /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 first fiscal quarter ended
August 31, 2018, which is the first
quarter of New Oriental's fiscal year 2019.
Financial Highlights for the First Fiscal Quarter Ended
August 31, 2018
- Total net revenues increased by 30.1% year-over-year to
US$859.8 million for the first fiscal
quarter of 2019.
- Operating income increased by 0.2% year-over-year to
US$161.3 million for the first fiscal
quarter of 2019.
- Net income attributable to New Oriental decreased by 22.2%
year-over-year to US$123.2 million
for the first fiscal quarter of 2019.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
1Q
FY2019
|
1Q
FY2018
|
% of
change
|
Net
revenues
|
859,846
|
661,165
|
30.1%
|
Operating
income
|
161,335
|
161,077
|
0.2%
|
Non-GAAP operating
income (2)(3)
|
175,255
|
164,203
|
6.7%
|
Net income
attributable to New Oriental
|
123,232
|
158,393
|
-22.2%
|
Non-GAAP net income
attributable to New Oriental
(2)(3)
|
184,136
|
161,519
|
14.0%
|
Net income per ADS
attributable to New Oriental -
basic
|
0.78
|
1.00
|
-22.5%
|
Net income per ADS
attributable to New Oriental -
diluted
|
0.77
|
1.00
|
-22.6%
|
Non-GAAP net income
per ADS attributable to New
Oriental - basic(3)(4)
|
1.16
|
1.02
|
13.6%
|
Non-GAAP net income
per ADS attributable to New
Oriental - diluted(3)(4)
|
1.16
|
1.02
|
13.4%
|
(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 First Fiscal Quarter Ended
August 31, 2018
- Total student enrollments in academic subjects tutoring and
test preparation courses increased by 13.2% year-over-year to
approximately 1,735,300 for the first fiscal quarter of 2019.
- The total number of schools and learning centers was 1,100 as
of August 31, 2018, an increase of
201 compared to 899 as of August 31,
2017, and an increase of 19 compared to 1,081 as of
May 31, 2018. The total number of
schools was 88 as of August 31,
2018.
Michael Yu, New Oriental's
Executive Chairman, commented, "We are very pleased to start fiscal
year 2019 with a remarkable year-over-year acceleration in our top
line growth rate at 30.1%, beating that of the same quarter of the
previous year. This strong top-line growth was largely driven by
the solid increase in student enrollments in the recent two
quarters, which had a steady year-over-year increase of
approximately 28% in the two quarters ended August 31, 2018. Our key growth driver, K-12
after-school tutoring business, continued its strong growth and
achieved approximately 49% increase in revenue. Furthermore, our
U-Can middle and high school all-subjects after-school tutoring
business delivered a revenue growth of approximately 49%, while the
POP Kids program grew by approximately 48% year-over-year."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "Guided by our well-proven
"Optimize the Market" Strategy, we continued to deepen our market
penetration in existing markets, by building out our capacity in
cities where we see rapid growth and strong profitability. This
quarter, we added a net of 18 learning centers in existing cities,
and opened a new training school in the city of Yiwu. Altogether,
the total square meters of classroom area by the end of this
quarter increased approximately 34% year-over-year and 3%
quarter-over-quarter. Furthermore, this quarter we completed a
successful summer promotion campaign by offering low-cost trial
courses for multiple subjects in 39 cities, mainly targeting
students before they start the first year at secondary school.
Trial course enrollments during the period reached 762,000, an
increase of 37.5% year-over-year, while student retention also
improved year-over-year. Meanwhile, we continue to leverage our
online and offline integrated standardized teaching system in our
core offline business including K-12 tutoring and overseas test
preparation businesses."
Stephen Zhihui Yang, New
Oriental's Chief Financial Officer, commented, "As a result of the
incremental cost pressure from our larger scale summer promotion
launched this summer, our non-GAAP operating margin for our offline
language training and test preparation business decreased by
approximately 110 basis points year-over-year. At the same time, we
are deeply encouraged to see constant year-over-year utilization
rate of facilities in this quarter, which is a clear indication of
the healthy ramping up of new facilities we built in the last
fiscal year. As for our offline language training and test
preparation business, we will maintain our expansion plan with a
goal of adding approximately 20-25% in overall capacity for the
full fiscal year 2019, through the opening of new learning centers
in existing cities and rolling out of dual-teacher model schools in
new cities. All the while, we will continue to sustain the healthy
balance between our strong growth momentum and cost control, with
continued efforts in improving the utilization rate of our
facilities. For our Koolearn.com pure online educational platform,
we will continue making investments in new initiatives in the K-12
after-school tutoring business to capture the huge market
opportunities in remote areas in China. We are confident that our robust
ecosystem integrating both offline and online education will
deliver sustainable value for our customers and shareholders over
the long term."
Adoption of Share Repurchase Program
On October 22, 2018, New
Oriental's board of directors authorized the repurchase of up to
US$200 million of the Company's
common shares during the period from October
29, 2018 through May 31,
2019.
This share repurchase program authorizes the Company to purchase
its ADSs or common shares from time to time on the open market at
prevailing market prices, in negotiated transactions off the
market, in block trades, pursuant to a 10b5-1 plan or other legally
permissible ways in accordance with applicable rules and
regulations. The timing and extent of any purchases will depend
upon market conditions, the trading price of ADSs and other
factors. New Oriental's board of directors will review the share
repurchase program periodically and may authorize adjustment to its
terms and size accordingly. New Oriental plans to fund any share
repurchases made under this program from the Company's available
cash balance.
Financial Results for the First Fiscal Quarter Ended
August 31, 2018
Net Revenues
For the first fiscal quarter of 2019, New Oriental reported net
revenues of US$859.8 million,
representing a 30.1% increase year-over-year. Net revenues from
educational programs and services for the first fiscal quarter were
US$797.5 million, representing a
31.9% increase year-over-year. The growth was mainly driven by
increases in student enrollments in academic subjects tutoring and
test preparation courses in the recent two quarters. Further to an
exceptional 44.9% year-over-year enrollment growth in the fourth
fiscal quarter of 2018, student enrollment continued to grow by
13.2% year-over-year to approximately 1,735,300 in the first fiscal
quarter of 2019. The combined enrollment growth for the fourth
fiscal quarter of 2018 and the first fiscal quarter of 2019 reached
28.4%.
Operating Cost and Expenses
Operating cost and expenses for the quarter were US$700.4 million, representing a 40.0% increase
year-over-year. Non-GAAP operating cost and expenses for the
quarter, which exclude share-based compensation expenses, were
US$686.4 million, representing a
38.1% increase year-over-year.
- Cost of revenues increased by 36.0% year-over-year to
US$367.4 million, primarily due to
increases in teachers' compensation for more teaching hours and
rental cost for increased number of schools and learning centers in
operation.
- Selling and marketing expenses increased by 34.4%
year-over-year to US$99.3million,
primarily due to increases in brand promotion expenses and selling
and marketing staff's compensation.
- General and administrative expenses for the quarter
increased by 49.8% year-over-year to US$233.7 million. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, were US$219.7 million,
representing a 43.7% increase year-over-year, primarily due to
increased headcount as the Company expanded its network of schools
and learning centers, as well as increases in R&D expenses and
human resources expenses related to the development of the
Company's online and offline integrated education ecosystem.
Total share-based compensation expenses, which were allocated to
related operating cost and expenses, increased by 345.3% to
US$13.9 million in the first fiscal
quarter of 2019. The substantial increase was primarily due to the
grants of a total of 1.5 million restricted share units of the
Company to employees and directors in October 2017 with graded vesting over three
years.
Operating Income and Operating Margin
Operating income for the quarter was US$161.3 million, representing a 0.2% increase
year-over-year. Non-GAAP operating income was US$175.3 million, representing a 6.7% increase
year-over-year.
Operating margin for the quarter was 18.8%, compared to 24.4% in
the same period of the prior fiscal year. Non-GAAP operating
margin, which excludes share-based compensation expenses, for the
quarter was 20.4%, compared to 24.8% in the same period of the
prior fiscal year.
Loss from Fair Value Change of Long-Term Investments
Loss from fair value change of long term investments for the
quarter was US$47.0 million in
accordance with the new financial instruments accounting standard
adopted on June 1, 2018.
Net Income and EPS
Net income attributable to New Oriental for the quarter was
US$123.2 million, representing a
22.2% decrease from the same period of the prior fiscal year. Basic
and diluted earnings per ADS attributable to New Oriental were
US$0.78 and US$0.77, respectively.
Non-GAAP Net Income and Non-GAAP EPS
Non-GAAP net income attributable to New Oriental for the quarter
was US$184.1 million, representing
a 14.0% increase from the same period of the prior
fiscal year. Non-GAAP basic and diluted earnings per ADS
attributable to New Oriental were US$1.16 and US$1.16, respectively.
Cash Flow
Net operating cash flow for the first fiscal quarter of 2019 was
approximately US$231.5 million.
Capital expenditures for the quarter were US$62.4 million, which were primarily
attributable to the opening of 65 facilities and renovations at
existing learning centers.
Balance Sheet
As of August 31, 2018, New
Oriental had cash and cash equivalents of US$833.1 million, as compared to US$983.3 million as of May
31, 2018. In addition, the Company had US$100.8 million in term deposits, US$1,698.0 million in short-term investments.
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
first quarter of fiscal year 2019 was US$1,146.7 million, an increase of 23.3% as
compared to US$930.0 million at the
end of the first quarter of fiscal year 2018. The Company adopted
Revenue from Contracts with Customers ("Topic 606") starting
June 1, 2018, and as a result, as of
August 31, 2018, US$66.0 million of deferred revenue was
reclassified to accrued expenses and other current liabilities,
representing estimated amounts of tuition collected that may be
refunded in the future if students withdraw from a course for any
remaining classes.
New Accounting Standards
"New Revenue Accounting Standard"
On June 1, 2018, the Company
adopted Revenue from Contracts with Customers ("Topic 606"),
applying the modified retrospective method to all contracts that
were not completed as of June 1,
2018. Results for reporting periods beginning June 1, 2018 are presented under Topic 606, while
prior period amounts are not adjusted and continue to be reported
under the accounting standards in effect for the prior periods. The
Company assessed variable consideration included in its overseas
study consulting service over the expected service period. The
cumulative effect of US$1.1 million
was recorded as an adjustment to the opening balance of retained
earnings upon the initial adoption.
"New Financial Instruments Accounting Standard"
The Company adopted the new financial instruments accounting
standard on June 1, 2018. Upon the
adoption, the equity securities with readily determinable fair
value are stated at fair value with changes recorded through the
income statements, which could vary significantly from quarter to
quarter. Approximately US$97.9
million of accumulated other comprehensive income for the
available-for-sale equity securities with readily determinable fair
value that existed as of May 31, 2018
was reclassified to the opening balance of retained earnings. A
loss of approximately US$47.0 million
from the fair value changes to the equity securities with readily
determinable fair value was recorded in other income during the
first fiscal quarter ended August 31,
2018.
Outlook for Second Quarter of Fiscal Year 2019
New Oriental expects total net revenues in the second quarter of
fiscal year 2019 (September 1, 2018
to November 30, 2018) to be in the
range of US$568.5 million to
US$586.4 million, representing
year-over-year growth in the range of 22% to 26%.
If not taking into consideration the impact of potential change
in exchange rate between Renminbi and the U.S. Dollar, the
projected revenue growth rate is expected to be in the range of 27%
to 31% for the second quarter of fiscal year 2019.
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 October 23, 2018, U.S. Eastern Time (8 PM on October 23,
2018, Beijing/Hong Kong
Time).
Dial-in details for the earnings conference call are as
follows:
US:
|
+1-845-675-0437
|
Hong Kong:
|
+852-3018-6771
|
UK:
|
+44-20-3621-4779
|
Passcode:
|
6497058
|
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call.
A replay of the conference call may be accessed by phone at the
following number until October 31,
2018:
International:
|
+61 2 8199
0299
|
Passcode:
|
6497058
|
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 second quarter of fiscal year 2019, 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: the Company's ability to attract students without a
significant decrease in course fees; the Company's ability to
continue to hire, train and retain qualified teachers; the
Company's ability to maintain and enhance its "New Oriental" brand;
the Company's ability to effectively and efficiently manage the
expansion of its school network and successfully execute its 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 the Company's revenues and certain cost
or expense items as a percentage of the Company's 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 the
Company's 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 loss from fair value change of long-term
investments, 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 and 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 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 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 and loss from fair value change of long-term
investments that have been
and will continue to be for the foreseeable future a significant
recurring expense in the Company's business. Management compensates
for these limitations by providing specific information regarding
the GAAP amounts excluded from each non-GAAP measure. The
accompanying tables have more details on the reconciliations
between GAAP financial measures that are most directly comparable
to non-GAAP financial measures.
Contacts
For investor and media inquiries, please contact:
Ms. Kathleen Wang
FTI Consulting
Tel: +852-3768-4546
Email: kathleen.wang@fticonsulting.com
Ms. Sisi Zhao
New Oriental Education & Technology Group Inc.
Tel: +86-10-6260-5568
Email: zhaosisi@xdf.cn
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
As of August
31
|
|
As of May
31
|
2018
|
|
2018
|
(Unaudited)
|
|
(Audited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
833,132
|
|
983,319
|
Restricted
cash
|
47
|
|
47
|
Term
deposits
|
100,840
|
|
107,741
|
Short-term
investments
|
1,698,019
|
|
1,623,763
|
Accounts receivable,
net
|
4,116
|
|
3,179
|
Inventory,
net
|
36,321
|
|
40,175
|
Prepaid expenses and
other current assets, net
|
218,517
|
|
182,095
|
Amounts due from
related parties, current
|
14,568
|
|
1,595
|
Total current
assets
|
2,905,560
|
|
2,941,914
|
|
|
|
|
Restricted cash,
non-current
|
3,162
|
|
3,399
|
Property and
equipment, net
|
474,149
|
|
449,592
|
Land use rights,
net
|
13,255
|
|
3,785
|
Amounts due from
related parties, non-current
|
2,093
|
|
2,226
|
Long-term
deposits
|
38,943
|
|
40,099
|
Long-term prepaid
rents
|
114
|
|
191
|
Intangible assets,
net
|
7,596
|
|
8,544
|
Goodwill,
net
|
29,851
|
|
31,729
|
Long-term investments,
net
|
417,955
|
|
433,333
|
Deferred tax assets,
non-current, net
|
44,547
|
|
43,323
|
Other non-current
assets
|
24,024
|
|
19,577
|
Total
assets
|
3,961,249
|
|
3,977,712
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY AND EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
(including accounts payable of the consolidated variable interest
entities without recourse to New Oriental of US$39,279 and
US$35,345 as of May 31, 2018 and August 31, 2018,
respectively)
|
35,795
|
|
39,889
|
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$335,955 and US$411,576 as of
May 31, 2018 and August 31, 2018, respectively)
|
461,478
|
|
373,537
|
Income taxes payable
(including income tax payable of the consolidated variable interest
entities without recourse to New Oriental of US$54,844 and
US$80,833 as of May 31, 2018 and August 31, 2018,
respectively)
|
86,233
|
|
67,233
|
Amounts due to related
parties (including amounts due to related parties of the
consolidated variable interest entities without recourse to New
Oriental of US$30 and US$532 as of May 31, 2018 and August 31,
2018, respectively)
|
532
|
|
30
|
Deferred revenue
(including deferred revenue of the consolidated variable interest
entities without recourse to New Oriental of US$1,244,748 and
US$1,143,161 as of May 31, 2018 and August 31, 2018,
respectively)
|
1,146,747
|
|
1,270,195
|
|
|
|
|
Total current
liabilities
|
1,730,785
|
|
1,750,884
|
|
|
|
|
Deferred tax
liabilities, non-current (including deferred tax liabilities of the
consolidated variable interest entities without recourse to New
Oriental of US$13,782 and US$13,895 as of May 31, 2018 and August
31, 2018, respectively)
|
13,326
|
|
12,133
|
|
|
|
|
Total
liabilities
|
1,744,111
|
|
1,763,017
|
|
|
|
|
Mezzanine
equity
|
|
|
|
Redeemable
non-controlling interests
|
206,624
|
|
206,624
|
Equity
|
|
|
|
New Oriental
Education & Technology Group Inc. shareholders'
equity
|
1,995,955
|
|
1,991,589
|
Non-controlling interests
|
14,559
|
|
16,482
|
Total
equity
|
2,010,514
|
|
2,008,071
|
|
|
|
|
Total liabilities,
mezzanine equity and equity
|
3,961,249
|
|
3,977,712
|
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 August 31
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
859,846
|
|
661,165
|
|
|
|
|
Operating cost and
expenses (note 1)
|
|
|
|
Cost of
revenues
|
367,399
|
|
270,194
|
Selling and
marketing
|
99,301
|
|
73,903
|
General and
administrative
|
233,662
|
|
155,991
|
Total operating
cost and expenses
|
700,362
|
|
500,088
|
Gain on disposal of a
subsidiary
|
1,851
|
|
-
|
Operating
income
|
161,335
|
|
161,077
|
Loss from fair value
change of long-term investments
|
(46,984)
|
|
-
|
Other income,
net
|
33,509
|
|
24,933
|
Provision for income
taxes
|
(25,684)
|
|
(26,878)
|
(Loss) Income from
equity method investments
|
(1,053)
|
|
25
|
|
|
|
|
Net
income
|
121,123
|
|
159,157
|
Add: Net loss
(income) attributable to non-controlling interests
|
2,109
|
|
(764)
|
|
|
|
|
Net income
attributable to New Oriental Education & Technology Group
Inc.'s shareholders
|
123,232
|
|
158,393
|
|
|
|
|
Net income per
common share
|
|
|
|
-
Basic
|
0.78
|
|
1.00
|
-
Diluted
|
0.77
|
|
1.00
|
|
|
|
|
Net income per ADS
(note 2)
|
|
|
|
-
Basic
|
0.78
|
|
1.00
|
-
Diluted
|
0.77
|
|
1.00
|
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 August 31
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
233,662
|
|
155,991
|
Less: Share-based
compensation expenses in general and administrative
expenses
|
13,920
|
|
3,126
|
Non-GAAP general and
administrative expenses
|
219,742
|
|
152,865
|
|
|
|
|
Total operating cost
and expenses
|
700,362
|
|
500,088
|
Less: Share-based
compensation expenses
|
13,920
|
|
3,126
|
Non-GAAP operating
cost and expenses
|
686,442
|
|
496,962
|
|
|
|
|
Operating
income
|
161,335
|
|
161,077
|
Add: Share-based
compensation expenses
|
13,920
|
|
3,126
|
Non-GAAP operating
income
|
175,255
|
|
164,203
|
|
|
|
|
Operating
margin
|
18.8%
|
|
24.4%
|
Non-GAAP operating
margin
|
20.4%
|
|
24.8%
|
|
|
|
|
Net income
attributable to New Oriental
|
123,232
|
|
158,393
|
Add: Share-based
compensation expenses
|
13,920
|
|
3,126
|
Add: Loss from fair
value change of long-term investments
|
46,984
|
|
-
|
Non-GAAP net income
attributable to New Oriental
|
184,136
|
|
161,519
|
|
|
|
|
Net income per ADS
attributable to New Oriental- Basic (note 2)
|
0.78
|
|
1.00
|
Net income per ADS
attributable to New Oriental- Diluted (note 2)
|
0.77
|
|
1.00
|
|
|
|
|
Non-GAAP net income
per ADS attributable to New Oriental - Basic (note 2)
|
1.16
|
|
1.02
|
Non-GAAP net income
per ADS attributable to New Oriental - Diluted (note 2)
|
1.16
|
|
1.02
|
|
|
|
|
Weighted average
shares used in calculating basic net income per ADS (note
2)
|
158,573,830
|
|
157,983,415
|
Weighted average
shares used in calculating diluted net income per ADS (note
2)
|
159,193,707
|
|
158,234,303
|
|
|
|
|
Non-GAAP income per
share - basic
|
1.16
|
|
1.02
|
Non-GAAP income per
share - diluted
|
1.16
|
|
1.02
|
Notes:
|
|
|
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the operating
cost and expenses as follows:
|
|
|
|
|
|
For the Three
Months Ended August 31
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
General and
administrative expenses
|
13,920
|
|
3,126
|
Total
|
13,920
|
|
3,126
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
View original
content:http://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-first-fiscal-quarter-ended-august-31-2018-and-adoption-of-up-to-us200-million-share-repurchase-program-300735939.html
SOURCE New Oriental Education and Technology Group Inc.