SHANGHAI, May 6, 2019
/PRNewswire/ -- Four Seasons Education (Cayman) Inc. ("Four
Seasons Education" or the "Company") (NYSE: FEDU), a leading
after-school math education service provider for elementary school
students in Shanghai, today
announced its unaudited financial results for the fourth quarter
and fiscal year 2019, ended February 28,
2019.
Fourth Quarter Fiscal Year 2019 Financial and Operational
Highlights
- Revenue decreased by 3.7% to RMB64.7
million (US$9.7 million) from
RMB67.2 million in the same period of
last year.
- Gross profit decreased by 50.3% to RMB18.7 million (US$2.8
million) from RMB37.7 million
in the same period of last year. Gross margin was 28.9%, compared
with 56.1% in the same period of last year.
- Operating loss was RMB30.1
million (US$4.5 million),
compared with operating income of RMB1.8
million in the same period of last year.
- Adjusted operating loss(1) (non-GAAP) was
RMB21.0 million (US$3.1 million), compared with adjusted operating
income of RMB8.1 million in the same
period of last year.
- Net loss was RMB18.5 million
(US$2.8 million), compared with net
income of RMB2.7 million in the same
period of last year.
- Adjusted net loss(2) (non-GAAP) was RMB12.2 million (US$1.8
million), compared with adjusted net income of RMB9.0 million in the same period of last
year.
- Basic and diluted net loss per American Depositary Share
("ADS") attributable to ordinary shareholders was both RMB0.36 (US$0.05),
compared with basic and diluted net income per ADS attributable to
ordinary shareholders of RMB0.09 and
RMB0.08 respectively, for the same
period of last year. Each two ADSs represent one ordinary
share.
- Adjusted basic and diluted net loss per ADS attributable to
ordinary shareholders (non-GAAP) was both RMB0.23 (US$0.03),
compared with adjusted basic and diluted net income per ADS
attributable to ordinary shareholders (non-GAAP) of RMB0.22 and RMB0.20, respectively, for the same period of
last year.
- Number of learning centers reached 52 as of February 28, 2019, compared with 38 as of
February 28, 2018.
- Total student enrollment(3) reached 46,165, representing an
increase of 188.4% from 16,010 during the same period of last year.
The substantial year-over-year increase in total student enrollment
was primarily due to the change in enrollment schedule in
accordance with the Opinion on Regulating the Development of
After-School Tutoring Institutions issued by the State Council,
which limits the prepayment of a curriculum registration to three
months. According to the new enrollment schedule adopted in
November 2018, the spring semester is
divided into two sessions, where student enrollments are recorded
separately for each session.
Fiscal Year 2019 Financial and Operational Highlights
- Revenue increased by 11.7% to RMB335.6
million (US$50.2 million) from
RMB300.5 million in the fiscal year
2018.
- Gross profit decreased by 14.3% to RMB163.8 million (US$24.5
million) from RMB191.1 million
in the fiscal year 2018. Gross margin was 48.8%, compared with
63.6% in the fiscal year 2018.
- Operating income was RMB1.1
million (US$0.2 million),
compared with RMB61.6 million in the
fiscal year 2018. Adjusted operating income(1)
(non-GAAP) was RMB33.4 million
(US$5.0 million), compared with
RMB85.1 million in the fiscal year
2018. Adjusted operating margin (non-GAAP) was 9.9% compared with
28.3% in the fiscal year 2018.
- Net loss was RMB1.5 million
(US$0.2 million), compared with net
income of RMB41.8 million in the
fiscal year 2018.
- Adjusted net income(2) (non-GAAP) was RMB35.6 million (US$5.3
million), compared with RMB65.3
million in the fiscal year 2018. Adjusted net
margin(4) (non-GAAP) was
10.6%, compared with 21.7% in the fiscal year 2018.
- Basic and diluted net loss per ADS attributable to ordinary
shareholders was both RMB0.01
(US$0.002), compared with basic and diluted net
income per ADS attributable to ordinary shareholders of
RMB1.07 and RMB0.99, respectively, for the fiscal year 2018.
Each two ADSs represent one ordinary share.
- Adjusted basic and diluted net income per ADS attributable to
ordinary shareholders (non-GAAP) was RMB0.76 (US$0.11)
and RMB0.72 (US$0.11), compared with RMB1.76 and RMB1.62, respectively, for the fiscal year
2018.
- Total student enrollment(3) reached 157,759, representing an
increase of 28.7% from 122,606 during the fiscal year 2018,
primarily due to the change in enrollment schedule in November 2018 in accordance with the latest
regulatory requirements. In addition, the increased course
offerings with higher diversification, and the expansion of the
Company's physical learning center network, including learning
centers the Company acquired in the fiscal year 2019, also
contributed to the increase in total student enrollment.
(1) Adjusted operating
income/loss is defined as operating income/loss excluding
share-based compensation expenses.
|
(2) Adjusted net income/loss is
defined as net income/loss excluding share-based compensation
expenses and fair value change of investments measured at fair
value.
|
(3) Total student
enrollment is defined as the cumulative number of courses enrolled
in and paid for by the Company's students during the
respective period, including multiple courses enrolled in and paid
for by the same student.
|
(4) Adjusted net margin is
defined as adjusted net income divided by
revenue.
|
For more information on these adjusted financial measures,
please see the section captioned under "About Non-GAAP Financial
Measures" and the tables captioned "Reconciliation of GAAP and
non-GAAP Results" set forth at the end of this release.
"We continued to make strategic adjustments with the goal of
optimizing operations and broadening educational offerings," said
Mr. Peiqing Tian, Chairman and Chief
Executive Officer of Four Seasons Education. "We were able to
further improve the diversification of offerings in spite of the
seasonality impact we experienced in this quarter due to Chinese
New Year and winter break. As a result, revenue contribution from
non-math courses and middle school programs steadily ratcheted up.
We continued to enhance the geographic diversification of our
revenue as our learning centers outside of Shanghai are contributing an increasing
percentage to our revenue. Moreover, we established online presence
by providing online courses and educational content that were
diligently selected. Students are now able to participate in
Four Seasons Education's featured online courses including certain
Ivy program as well as other interest-based classes such as Rubik's
Cube.
"With respect to our learning center network, we have been in
the process of optimization as we planned. To optimize our network
layout and resource allocation, we relocated or combined certain
learning centers with small gross floor areas into large centers at
new locations with upgraded facilities. As of February 28, 2019, we had 52 learning centers
including 44 in Shanghai and eight
in other cities.
"We achieved notable progress in developing and promoting other
initiatives and activities designed to improve logical reasoning
and foundational math skills. Four Seasons' competitive Sudoku and
Bridge teams achieved outstanding performance in competitions
during the quarter, which promoted the games' popularity as an
interest-oriented competitive learning method across China. In addition, we have finished the
majority of the course development work for our math lab program.
Our self-test system has also been upgraded with an enriched
question library and well-tagged categorization. Based on the
increasingly comprehensive dataset, our evaluation system will be
able to automatically generate
bespoke sets of test questions, helping students develop a
comprehensive understanding of certain areas of knowledge according
to the individual's scholastic aptitude. Overall, we finished the
fiscal year 2019 with many achievements despite changes in
regulatory requirements in the fast-evolving education industry and
relatively weak performance of new learning centers during the
ramp-up period. We believe we are in the right trajectory to grow
our business as we provide math and many other core subject classes
to students at different grade levels," Mr. Tian concluded.
Ms. Yi (Joanne) Zuo, Director and
Chief Financial Officer of Four Seasons Education, commented, "we
are pleased to conclude fiscal 2019 with full-year revenue growth
of 11.7% year over year and adjusted net income of RMB35.6 million for the year. The fiscal year
2019 was a year of transformation for the Company. Anchored by our
strong capabilities in math education serving as our foundation and
a core strength, we have been broadening course offerings, which
cover more subjects across wider age groups. We also expanded and
improved our learning center network which optimized utilization of
our resources in the fiscal year 2019. We are confident in our
strategy that has been set forth and are encouraged by the
development of our business. We remain committed to nurturing
students' interests in learning with enriched educational content,
while seeking quality growth and enhanced efficiency."
Fourth Quarter Fiscal Year 2019 Financial
Results
Revenue decreased by 3.7% to RMB64.7 million (US$9.7
million) for the fourth quarter of fiscal year 2019 from
RMB67.2 million in the same period of
last year, primarily due to the decreased revenue contribution from
competition-related programs as a result of changing regulatory
requirement.
Cost of revenue increased by 55.9% to RMB46.0 million (US$6.9
million) for the fourth quarter of fiscal year 2019 from
RMB29.5 million in the same period of
last year, primarily attributable to costs associated with the
increase in faculty staff cost and learning centers' rental,
utilities and maintenance and depreciation costs, as a result of
increased number of learning centers.
Gross profit decreased by 50.3% to RMB18.7 million (US$2.8
million) for the fourth quarter of fiscal year 2019 from
RMB37.7 million in the same period of
last year. Gross margin was 28.9% for the fourth quarter of
fiscal year 2019, compared with 56.1% in the same period of last
year. The decrease in gross margin was primarily due to the
expansion of new centers which yield relatively lower gross margin
during the ramp-up period, and the increase in faculty staff
cost.
General and administrative expenses increased by
63.0% to RMB39.8 million
(US$5.9 million) for the fourth
quarter of fiscal year 2019 from RMB24.4
million in the same period of last year, primarily
attributable to increased staff cost of RMB4.8 million (US$0.7
million), an RMB1.8 million
(US$0.3 million) increase in depreciation
and amortization cost and increased share-based compensation
expenses of RMB2.9 million
(US$0.4 million).
Sales and marketing expenses decreased by 21.1% to
RMB9.1 million (US$1.4 million) for the fourth quarter of fiscal
year 2019 from RMB11.5 million in the
same period of last year.
Operating loss was RMB30.1
million (US$4.5 million) for
the fourth quarter of fiscal year 2019, compared
with operating income of RMB1.8
million in the same period of last year. Adjusted
operating loss, which excludes share-based compensation
expenses, was RMB21.0 million
(US$3.1 million) for the fourth
quarter of fiscal year 2019, compared with adjusted operating
income of RMB8.1 million in the same
period of last year.
Interest income decreased by 58.1% to RMB0.9 million (US$0.1
million) for the fourth quarter of fiscal year 2019 from
RMB2.1 million in the same period of
last year, primarily due to the withdrawal of short-term
deposit.
Other income, net was RMB2.7 million (US$0.4 million) for the fourth quarter of
fiscal year 2019, compared with other expenses of RMB0.6 million in the same period of last year,
primarily due to fair value change of a 2-year Pimco fund-linked
note and a 1-year certificate on a mutual fund, both with 100%
minimum redemption level at maturity that the Company intends to
hold to maturity.
Income tax benefit was RMB8.1 million
(US$1.2 million) for the fourth
quarter of fiscal year 2019, compared with income tax expense of
RMB0.7 million in the same period of
last year. Income tax benefit for the quarter was primarily due to
an RMB4.7 million (US$0.7 million) reversal of accrued income tax as
the Company's Wholly Owned Foreign Enterprise ("WOFE") is able to
enjoy a preferential tax treatment since it was recognized as a
"software enterprise" by relevant PRC government agencies. Another
RMB3.6 million (US$0.5 million) of income tax benefit was derived
from the positive change from previous uncertain tax position.
Net loss was RMB18.5
million (US$2.8 million)
during the fourth quarter of fiscal year 2019, compared with net
income of RMB2.7 million in the same
period of last year. Adjusted net loss, which excludes
share-based compensation expenses and fair value change of
investments measured at fair value, was RMB12.2 million (US$1.8
million), compared with adjusted net income of RMB9.0 million in the same period of last year.
Basic and diluted net loss per ADS attributable to ordinary
shareholders for the fourth quarter of fiscal year 2019 was
both RMB0.36 (US$0.05), compared with basic and diluted net
income per ADS attributable to ordinary shareholders of
RMB0.09 and RMB0.08, respectively, for the same period of
last year. Non-GAAP basic and diluted net loss per ADS
attributable to ordinary shareholders for the fourth quarter of
fiscal year 2019 was both RMB0.23
(US$0.03), compared with non-GAAP
basic and diluted net income per ADS attributable to ordinary
shareholders of RMB0.22 and
RMB0.20, respectively, for the same
period of last year.
Cash and cash equivalents. As of February 28, 2019, the Company had cash and cash
equivalents of RMB471.2 million
(US$70.4 million), a decrease of
19.2% compared with RMB583.3 million
as of February 28, 2018, primarily
due to an RMB144.1 million
(US$20.0 million) cash payments for
the acquisitions, and the increase in short-term investment of
RMB32.7 million (US$4.9 million). The decrease was partially
offset by the operating cash inflow generated in the fiscal
2019.
Shares Outstanding
As of May 6, 2019, the Company had
a total of 24,966,591 ordinary shares outstanding. Each two
ADSs represent one ordinary share.
Fiscal Year 2019 Financial Results
Revenue increased by 11.7% to RMB335.6 million (US$50.2
million) for the fiscal year 2019 from RMB300.5 million in the fiscal year 2018,
primarily due to the increase in enrollment as a result of the
expanded course offerings with higher diversification, and the
expansion of the Company's physical learning center network,
including learning centers the Company acquired in the fiscal year
2019. This increase was partially offset by the decreased revenue
contribution from math-competition focused classes as a result of
changing regulatory requirement.
Cost of revenue increased by 57.0% to RMB171.8 million (US$25.7
million) for the fiscal year 2019 from RMB109.4 million in the fiscal year 2018,
primarily attributable to costs associated with the increase in
faculty staff cost as well as learning centers' rental, utilities
and maintenance and depreciation costs, as a result of increased
number of learning centers.
Gross profit decreased by 14.3% to RMB163.8 million (US$24.5
million) for the fiscal year 2019 from RMB191.1 million in the fiscal year
2018. Gross margin was 48.8% for the fiscal year 2019,
compared with 63.6% in the fiscal year 2018. The decrease in gross
margin was primarily due to the expansion of new centers which
yield relatively lower gross margin during the ramp-up period, and
the increase in faculty staff cost.
General and administrative expenses increased by
38.7% to RMB128.9 million
(US$19.3 million) for the fiscal year
2019 from RMB92.9 million in the
fiscal year 2018, primarily attributable to increased staff cost of
RMB17.5 million (US$2.6 million), increased share-based
compensation expenses of RMB8.7
million (US$1.3 million) and
an increase of RMB4.1 million (US$0.6
million) in depreciation and amortization cost.
Sales and marketing expenses decreased by 7.6% to
RMB33.8 million (US$5.0 million) for the fiscal year 2019 from
RMB36.6 million in the fiscal year
2018.
Operating income was RMB1.1
million (US$0.2 million) for
the fiscal year 2019, compared with RMB61.6
million in the fiscal year 2018. Adjusted operating
income, which excludes share-based compensation expenses,
was RMB33.4 million (US$5.0 million) for the fiscal year 2019,
compared with RMB85.1 million in the
fiscal year 2018.
Interest income increased by 21.8% to RMB6.8 million (US$1.0
million) for the fiscal year 2019 from RMB5.5 million in the fiscal year 2018.
Other expense, net reached RMB3.3 million (US$0.5 million) for the fiscal year 2019 from
RMB1.3 million in the fiscal
year 2018, primarily due to fair value change of a 2-year Pimco
fund-linked note and a 1-year certificate on a mutual fund, both
with 100% minimum redemption level at maturity that the Company
intends to hold to maturity.
Income tax expenses decreased by 61.7% to
RMB10.1 million (US$1.5 million) for the fiscal year 2019 from
RMB26.4 million in the fiscal year
2018, partially due to the income
tax benefit for the fourth quarter as the Company's Wholly Owned
Foreign Enterprise ("WOFE") is able to enjoy a preferential tax
treatment since it was recognized as a "software enterprise" by
relevant PRC government agencies. Another
RMB3.6 million (US$0.5 million) of income tax benefit was derived
from the positive change from previous uncertain tax
position.
Net loss was RMB1.5 million
(US$0.2 million) during the fiscal
year 2019, compared with net income of RMB41.8 million in the fiscal year 2018.
Adjusted net income, which excludes share-based compensation
expenses and fair value change of investments measured at fair
value, was RMB35.6 million
(US$5.3 million), compared with
RMB65.3 million in the fiscal year
2018. Adjusted net margin was 10.6%, compared with 21.7% in the
fiscal year 2018.
Basic and diluted net loss per ADS attributable to ordinary
shareholders for the fiscal year 2019 was both
RMB0.01 (US$0.002), compared with basic and diluted net
income per ADS attributable to ordinary shareholders of
RMB1.07 and RMB0.99, respectively, for the fiscal year
2018. Non-GAAP basic and diluted net income per ADS
attributable to ordinary shareholders for the fiscal year
2019 was RMB0.76 (US$0.11) and RMB0.72 (US$0.11),
respectively, compared with RMB1.76
and RMB1.62, respectively, for the
fiscal year 2018.
Recent Developments
The board of directors of the Company (the "Board") approved a
share repurchase program, effective on April
15, 2019, whereby Four Seasons Education is authorized to
repurchase its own ordinary shares in the form of ADS with an
aggregate value of up to US$15
million during the next twelve-month period. The Company
plans to fund the repurchase program out of its available working
capital, existing cash balance or future cash provided by operating
activities.
Business Outlook
For the first quarter of fiscal 2020, the Company expects to
generate revenue in the range of RMB83.8
million to RMB86.4
million.
The above guidance reflects the Company's current and
preliminary view, which is subject to change.
Conference Call
The Company's management will host an earnings conference call
at 8:00 AM U.S. Eastern Time on
May 6, 2019 (8:00 PM Beijing/Hong
Kong time on May 6, 2019).
Dial-in details for the earnings conference call are as
follows:
United States (toll
free):
|
1-888-346-8982
|
International:
|
1-412-902-4272
|
Hong Kong (toll
free):
|
800-905-945
|
Hong Kong:
|
852-3018-4992
|
China (toll
free):
|
400-120-1203
|
Participants should dial-in at least 5 minutes before the
scheduled start time and ask to be connected to the call for "Four
Seasons Education."
Additionally, a live and archived webcast of the conference call
will be available on the Company's investor relations website
at http://ir.sijiedu.com.
A replay of the conference call will be accessible approximately
one hour after the conclusion of the live call until May
13, 2019, by dialing the following telephone numbers:
United States (toll
free):
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Replay Access
Code:
|
10131247
|
About Four Seasons Education (Cayman) Inc.
Four Seasons Education (Cayman) Inc. is a leading after-school
math education service provider for elementary school students in
Shanghai. The Company's vision is
to unlock students' intellectual potential through high quality and
effective math education that can profoundly benefit students'
academic, career and life prospects. The Company provides
educational programs that are primarily focused on elementary-level
math, and have expanded in recent years to also include other
subjects, including physics, chemistry, and languages, and other
grade levels, including kindergarten-level and middle school-level
programs. The Company's proprietary educational content is designed
to cultivate students' interests and enhance their cognitive and
logic abilities. The Company develops its educational content
through a systematic development process and updates it regularly
based on student performance and feedback. Such process allows the
Company to effectively drive better learning outcomes and serve
students of different ages, aptitude levels and learning
objectives. The Company's faculty is led by a group of experienced
senior educators, including recognized scholars, award-winning
teachers, world-class competition champions and top mathematics
Olympiad coaches in China. Over
the years, the quality of the Company's education services has been
demonstrated by its students' outstanding academic performance.
About Non-GAAP Financial Measures
In evaluating the Company's business, the Company considers and
use certain non-GAAP measures, including primarily adjusted
operating income, adjusted net income, adjusted margin and adjusted
basic and diluted net income per ADS attributable to ordinary
shareholders, as supplemental measures to review and assess the
Company's operating performance. To present each of these non-GAAP
measures, the Company excludes (i) share-based compensation
expenses, and (ii) fair value change of investments measured at
fair value. 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 U.S. GAAP.
The Company believes that these non-GAAP financial measures
provide meaningful supplemental information regarding its
performance and liquidity by excluding share-based expenses and
fair value change of investments measured at fair value that may
not be indicative of the Company's operating performance from a
cash perspective. The Company believes that both management and
investors benefit from these non-GAAP financial measures in
assessing its performance and when planning and forecasting future
periods. These non-GAAP financial measures also facilitate
management's internal comparisons to the Company's historical
performance and liquidity. The Company also believes these non-GAAP
financial measures are useful to investors in allowing for greater
transparency with respect to supplemental information used by
management in the Company's financial and operational decision
making. A limitation of using non-GAAP measures is that these
non-GAAP measures exclude share-based compensation charges and fair
value change of investments measured at fair value that have been
and will continue to be for the foreseeable future a significant
recurring expense in the Company's business. The Company
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.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars at a specified rate solely for the convenience of
the reader. Unless otherwise noted, all translations from RMB to
U.S. dollars are made at a rate of RMB6.6912 to US$1.00, the rate set forth in the H.10
statistical release of the U.S. Federal Reserve Board on
February 28, 2019.
Safe Harbor Statement
This press release contains statements of a forward-looking
nature. These statements, including the statements relating to the
Company's future financial and operating results, are made under
the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. You can identify these
forward-looking statements by terminology such as "will,"
"expects," "believes," "anticipates," "intends," "estimates" and
similar statements. Among other things, management's quotations and
the Business Outlook section contain forward-looking statements.
These forward-looking statements involve known and unknown risks
and uncertainties and are based on current expectations,
assumptions, estimates and projections about the Company and the
industry. Potential risks and uncertainties include, but are not
limited to, those relating to its ability to attract new students
and retain existing students, its ability to deliver a satisfactory
learning experience and improving their academic performance, PRC
regulations and policies relating to the education industry in
China, general economic conditions
in China, and the Company's
ability to meet the standards necessary to maintain listing of its
ADSs on the NYSE or other stock exchange, including its ability to
cure any non-compliance with the NYSE's continued listing criteria.
All information provided in this press release is as of the date
hereof, and the Company undertakes no obligation to update any
forward-looking statements to reflect subsequent occurring events
or circumstances, or changes in its expectations, except as may be
required by law. Although the Company believes that the
expectations expressed in these forward-looking statements are
reasonable, it cannot assure you that its expectations will turn
out to be correct, and investors are cautioned that actual results
may differ materially from the anticipated results. Further
information regarding risks and uncertainties faced by the Company
is included in the Company's filings with the U.S. Securities and
Exchange Commission, including its registration statement on Form
F-1 filed in connection with its initial public offering.
For investor and media inquiries, please contact:
In China:
Four Seasons Education (Cayman) Inc.
Olivia Li
Tel: +86 (21) 6317-6678
E-mail: IR@fsesa.com
The Piacente Group, Inc.
Xi Zhang
Tel: +86 (10) 5730-6200
E-mail: fourseasons@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: fourseasons@tpg-ir.com
FOUR SEASONS
EDUCATION (CAYMAN) INC.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands,
except share data and per share data)
|
|
|
As
of
|
|
February
28
|
|
|
February
28
|
|
|
February
28
|
|
2018
|
|
|
2019
|
|
|
2019
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
583,324
|
|
|
|
471,235
|
|
|
|
70,426
|
Accounts receivable
and contract assets
|
|
5,686
|
|
|
|
811
|
|
|
|
121
|
Amounts due from
related parties
|
|
-
|
|
|
|
119
|
|
|
|
18
|
Other receivables,
deposits and other assets
|
|
6,015
|
|
|
|
22,517
|
|
|
|
3,365
|
Short-term investment
under fair value
|
|
-
|
|
|
|
32,715
|
|
|
|
4,889
|
Total current
assets
|
|
595,025
|
|
|
|
527,397
|
|
|
|
78,819
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
23,920
|
|
|
|
27,000
|
|
|
|
4,035
|
Intangible asset,
net
|
|
-
|
|
|
|
43,897
|
|
|
|
6,560
|
Goodwill
|
|
557
|
|
|
|
149,775
|
|
|
|
22,384
|
Deferred tax
assets
|
|
4,052
|
|
|
|
9,536
|
|
|
|
1,425
|
Equity method
investment
|
|
-
|
|
|
|
219
|
|
|
|
33
|
Long-term investment
under fair value
|
|
158,235
|
|
|
|
162,937
|
|
|
|
24,351
|
Rental
deposits—non-current
|
|
10,493
|
|
|
|
11,293
|
|
|
|
1,688
|
Total non-current
assets
|
|
197,257
|
|
|
|
404,657
|
|
|
|
60,476
|
TOTAL
ASSETS
|
|
792,282
|
|
|
|
932,054
|
|
|
|
139,295
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
Amounts due to related
parties
|
|
390
|
|
|
|
10,719
|
|
|
|
1,602
|
Accrued expenses and
other current liabilities
|
|
29,221
|
|
|
|
56,566
|
|
|
|
8,454
|
Income tax
payable
|
|
14,622
|
|
|
|
9,065
|
|
|
|
1,355
|
Deferred
revenue
|
|
90,101
|
|
|
|
87,870
|
|
|
|
13,132
|
Total current
liabilities
|
|
134,334
|
|
|
|
164,220
|
|
|
|
24,543
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
|
|
Deferred tax
liability
|
|
-
|
|
|
|
10,903
|
|
|
|
1,629
|
Total non-current
liabilities
|
|
-
|
|
|
|
10,903
|
|
|
|
1,629
|
TOTAL
LIABILITIES
|
|
134,334
|
|
|
|
175,123
|
|
|
|
26,172
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
657,948
|
|
|
|
756,931
|
|
|
|
113,123
|
TOTAL LIABILITIES
AND EQUITY
|
|
792,282
|
|
|
|
932,054
|
|
|
|
139,295
|
FOUR SEASONS
EDUCATION (CAYMAN) INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except share data and per share data)
|
|
|
Three Months Ended
February 28,
|
|
Twelve Months
Ended February 28,
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Revenue
|
|
67,163
|
|
|
64,700
|
|
|
9,669
|
|
|
300,533
|
|
|
335,643
|
|
|
50,162
|
Cost of
revenue
|
|
(29,496)
|
|
|
(45,984)
|
|
|
(6,872)
|
|
|
(109,444)
|
|
|
(171,822)
|
|
|
(25,679)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
37,667
|
|
|
18,716
|
|
|
2,797
|
|
|
191,089
|
|
|
163,821
|
|
|
24,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
(24,407)
|
|
|
(39,794)
|
|
|
(5,947)
|
|
|
(92,932)
|
|
|
(128,906)
|
|
|
(19,265)
|
Sales and marketing
expenses
|
|
(11,491)
|
|
|
(9,066)
|
|
|
(1,355)
|
|
|
(36,565)
|
|
|
(33,783)
|
|
|
(5,049)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income/(loss)
|
|
1,769
|
|
|
(30,144)
|
|
|
(4,505)
|
|
|
61,592
|
|
|
1,132
|
|
|
169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidy
income
|
|
48
|
|
|
5
|
|
|
1
|
|
|
2,432
|
|
|
4,150
|
|
|
620
|
Interest
income
|
|
2,128
|
|
|
891
|
|
|
133
|
|
|
5,546
|
|
|
6,756
|
|
|
1,010
|
Other
(expenses)/income, net
|
|
(592)
|
|
|
2,707
|
|
|
405
|
|
|
(1,302)
|
|
|
(3,311)
|
|
|
(495)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss)
before income taxes
|
|
3,353
|
|
|
(26,541)
|
|
|
(3,966)
|
|
|
68,268
|
|
|
8,727
|
|
|
1,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
(expense)/benefit
|
|
(671)
|
|
|
8,113
|
|
|
1,212
|
|
|
(26,424)
|
|
|
(10,116)
|
|
|
(1,512)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss)
before loss in equity method investments
|
|
2,682
|
|
|
(18,428)
|
|
|
(2,754)
|
|
|
41,844
|
|
|
(1,389)
|
|
|
(208)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from equity
method investment
|
|
-
|
|
|
(81)
|
|
|
(12)
|
|
|
-
|
|
|
(81)
|
|
|
(12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
2,682
|
|
|
(18,509)
|
|
|
(2,766)
|
|
|
41,844
|
|
|
(1,470)
|
|
|
(220)
|
Net loss
attributable to non-controlling interest
|
|
(1,416)
|
|
|
(948)
|
|
|
(142)
|
|
|
(2,529)
|
|
|
(869)
|
|
|
(130)
|
Net income/(loss)
attributable to Four Seasons Education (Cayman)
Inc.
|
|
4,098
|
|
|
(17,561)
|
|
|
(2,624)
|
|
|
44,373
|
|
|
(601)
|
|
|
(90)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.17
|
|
|
(0.73)
|
|
|
(0.11)
|
|
|
2.15
|
|
|
(0.02)
|
|
|
(0.00)
|
Diluted
|
|
0.16
|
|
|
(0.73)
|
|
|
(0.11)
|
|
|
1.98
|
|
|
(0.02)
|
|
|
(0.00)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in calculating net income/(loss) per
ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
24,026,591
|
|
|
24,065,533
|
|
|
24,065,533
|
|
|
17,057,056
|
|
|
24,053,492
|
|
|
24,053,492
|
Diluted
|
|
25,760,602
|
|
|
24,065,533
|
|
|
24,065,533
|
|
|
18,524,644
|
|
|
24,053,492
|
|
|
24,053,492
|
FOUR SEASONS
EDUCATION (CAYMAN) INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
|
(in thousands,
except share data and per share data)
|
|
|
Three Months Ended
February 28,
|
|
Twelve Months
Ended February 28,
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Net
income/(loss)
|
|
2,682
|
|
|
(18,509)
|
|
|
(2,766)
|
|
|
41,844
|
|
|
(1,470)
|
|
|
(220)
|
Other
comprehensive income/(loss), net of tax of nil
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
28,856
|
|
|
(18,721)
|
|
|
(2,798)
|
|
|
(34,771)
|
|
|
29,916
|
|
|
4,471
|
Comprehensive
income (loss)
|
|
31,538
|
|
|
(37,230)
|
|
|
(5,564)
|
|
|
7,073
|
|
|
28,446
|
|
|
4,251
|
Less: Comprehensive
loss attributable to non-controlling interest
|
|
(1,416)
|
|
|
(948)
|
|
|
(142)
|
|
|
(2,529)
|
|
|
(869)
|
|
|
(130)
|
Comprehensive
income (loss) attributable to Four Seasons Education
(Cayman) Inc.
|
|
32,954
|
|
|
(36,282)
|
|
|
(5,422)
|
|
|
9,602
|
|
|
29,315
|
|
|
4,381
|
FOUR SEASONS
EDUCATION (CAYMAN) INC.
|
RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
|
(in thousands,
except share data and per share data)
|
|
|
|
Three Months Ended
February 28,
|
|
|
Twelve Months
Ended February 28,
|
|
|
|
2018
|
|
|
2019
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2019
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Net
income/(loss)
|
|
|
2,682
|
|
|
|
(18,509)
|
|
|
|
(2,766)
|
|
|
|
41,844
|
|
|
|
(1,470)
|
|
|
|
(220)
|
|
Add: share-based
compensation expenses (net of tax effect of nil)
|
|
|
6,311
|
|
|
|
9,149
|
|
|
|
1,367
|
|
|
|
23,470
|
|
|
|
32,247
|
|
|
|
4,819
|
|
Add: fair value
change of investments, excluding foreign currency
translation adjustment (net of tax effect of nil)
|
|
|
-
|
|
|
|
(2,883)
|
|
|
|
(431)
|
|
|
|
-
|
|
|
|
4,783
|
|
|
|
715
|
|
Adjusted net
income/(loss) (non-GAAP)
|
|
|
8,993
|
|
|
|
(12,243)
|
|
|
|
(1,830)
|
|
|
|
65,314
|
|
|
|
35,560
|
|
|
|
5,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
margin
|
|
|
4.0
|
%
|
|
|
-28.6
|
%
|
|
|
-28.6
|
%
|
|
|
13.9
|
%
|
|
|
-0.4
|
%
|
|
|
-0.4
|
%
|
Add: share-based
compensation expenses
|
|
|
9.4
|
%
|
|
|
14.1
|
%
|
|
|
14.1
|
%
|
|
|
7.8
|
%
|
|
|
9.6
|
%
|
|
|
9.6
|
%
|
Add: fair value
change of investments, excluding foreign
currency
translation adjustment
|
|
|
-
|
|
|
|
-4.4
|
%
|
|
|
-4.4
|
%
|
|
|
-
|
|
|
|
1.4
|
%
|
|
|
1.4
|
%
|
Adjusted net
margin (non-GAAP)
|
|
|
13.4
|
%
|
|
|
-18.9
|
%
|
|
|
-18.9
|
%
|
|
|
21.7
|
%
|
|
|
10.6
|
%
|
|
|
10.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income/(loss)
|
|
|
1,769
|
|
|
|
(30,144)
|
|
|
|
(4,505)
|
|
|
|
61,592
|
|
|
|
1,132
|
|
|
|
169
|
|
Add: share-based
compensation expenses
|
|
|
6,311
|
|
|
|
9,149
|
|
|
|
1,367
|
|
|
|
23,470
|
|
|
|
32,247
|
|
|
|
4,819
|
|
Adjusted operating
income/(loss) (non-GAAP)
|
|
|
8,080
|
|
|
|
(20,995)
|
|
|
|
(3,138)
|
|
|
|
85,062
|
|
|
|
33,379
|
|
|
|
4,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income/(loss) per ADS attributable to
ordinary shareholders
|
|
|
0.09
|
|
|
|
(0.36)
|
|
|
|
(0.05)
|
|
|
|
1.07
|
|
|
|
(0.01)
|
|
|
|
(0.00)
|
|
Add: share-based
compensation expenses per ADS
attributable to ordinary shareholders
|
|
|
0.13
|
|
|
|
0.19
|
|
|
|
0.03
|
|
|
|
0.69
|
|
|
|
0.67
|
|
|
|
0.10
|
|
Add: fair value
change of investments per ADS
attributable to
ordinary shareholders
|
|
|
-
|
|
|
|
(0.06)
|
|
|
|
(0.01)
|
|
|
|
-
|
|
|
|
0.10
|
|
|
|
0.01
|
|
Adjusted basic net
income/(loss) per ADS attributable to
ordinary shareholders (non-GAAP)
|
|
|
0.22
|
|
|
|
(0.23)
|
|
|
|
(0.03)
|
|
|
|
1.76
|
|
|
|
0.76
|
|
|
|
0.11
|
|
Diluted net
income/(loss) per ADS attributable to
ordinary
shareholders
|
|
|
0.08
|
|
|
|
(0.36)
|
|
|
|
(0.05)
|
|
|
|
0.99
|
|
|
|
(0.01)
|
|
|
|
(0.00)
|
|
Add: share-based
compensation expenses per ADS
attributable to ordinary shareholders
|
|
|
0.12
|
|
|
|
0.19
|
|
|
|
0.03
|
|
|
|
0.63
|
|
|
|
0.64
|
|
|
|
0.10
|
|
Add: fair value
change of investments per ADS
attributable to ordinary shareholders
|
|
|
-
|
|
|
|
(0.06)
|
|
|
|
(0.01)
|
|
|
|
-
|
|
|
|
0.09
|
|
|
|
0.01
|
|
Adjusted diluted
net income/(loss) per ADS attributable to ordinary
shareholders (non-GAAP)
|
|
|
0.20
|
|
|
|
(0.23)
|
|
|
|
(0.03)
|
|
|
|
1.62
|
|
|
|
0.72
|
|
|
|
0.11
|
|
Weighted average ADSs
used in calculating earnings
per
ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
48,053,182
|
|
|
|
48,131,065
|
|
|
|
48,131,065
|
|
|
|
34,114,111
|
|
|
|
48,106,984
|
|
|
|
48,106,984
|
|
Diluted
|
|
|
51,521,204
|
|
|
|
48,131,065
|
|
|
|
48,131,065
|
|
|
|
37,049,289
|
|
|
|
48,106,984
|
|
|
|
48,106,984
|
|
View original
content:http://www.prnewswire.com/news-releases/four-seasons-education-reports-fourth-quarter-and-fiscal-year-2019-unaudited-financial-results-300844200.html
SOURCE Four Seasons Education Inc.