SHANGHAI, May 18, 2020
/PRNewswire/ -- Four Seasons Education (Cayman) Inc. ("Four Seasons Education" or the
"Company") (NYSE: FEDU), a leading Shanghai-based educational company dedicated
to providing comprehensive after-school education services with a
focus on high-quality math education, today announced its unaudited
financial results for the fourth quarter and fiscal year 2020,
ended February 29, 2020.
Fourth Quarter Fiscal Year 2020 Financial and Operational
Highlights
- Revenue increased by 9.8% to RMB71.1
million (US$10.2 million) from
RMB64.7 million in the same period of
last year.
- Gross profit increased by 32.4% to RMB24.8 million (US$3.5
million) from RMB18.7 million
in the same period of last year.
- Operating loss was RMB168.2
million (US$24.1 million),
compared with RMB30.1 million in the
same period of last year.
- Adjusted operating loss(1) (non-GAAP) was
RMB15.1 million (US$2.2 million), compared with RMB20.4 million in the same period of last
year.
- Net loss was RMB145.4 million
(US$20.8 million), compared with
RMB18.5 million in the same period of
last year.
- Adjusted net loss(2) (non-GAAP) was RMB4.7 million (US$0.7
million), compared with RMB11.7
million in the same period of last year.
- Basic and diluted net loss per American Depositary Share
("ADS") attributable to ordinary shareholders were both
RMB3.11 (US$0.44), compared with both RMB0.36, 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(3) (non-GAAP) were both
RMB0.07 (US$0.01), compared with both RMB0.22, for the same period of last year.
- Number of learning centers was 53 as of February 29, 2020, compared with 52 as of
February 28, 2019.
- Total student enrollment(4) reached 24,006, compared
with 46,165 during the same period of last year. The decrease was
primarily due to the early Chinese New Year holidays in 2020 which
resulted in a large portion of student enrollments for the winter
semester occurring in the third fiscal quarter compared with last
year and the impact of the outbreak of COVID-19.
Fiscal Year 2020 Financial and Operational Highlights
- Revenue increased by 15.9% to RMB389.0
million (US$55.7 million) from
RMB335.6 million in the same period
of last year.
- Gross profit increased by 14.8% to RMB188.1 million (US$26.9
million) from RMB163.8 million
in the same period of last year.
- Operating loss was RMB131.0
million (US$18.7 million),
compared with operating income of RMB1.1
million in the same period of last year.
- Adjusted operating income(1) (non-GAAP) increased by
33.3% to RMB45.2 million
(US$6.5 million) from RMB33.9 million in the same period of last
year.
- Net loss was RMB109.6 million
(US$15.7 million), compared with
RMB1.5 million in the same period of
last year.
- Adjusted net income(2) (non-GAAP) increased by 32.5%
to RMB47.9 million (US$6.8 million) from RMB36.1 million in the same period of last
year.
- Basic and diluted net loss per American Depositary Share
("ADS") attributable to ordinary shareholders were both
RMB2.31 (US$0.33), compared with both RMB0.01, for the same period of last year.
- Adjusted basic and diluted net income per ADS attributable to
ordinary shareholders(3) (non-GAAP) were RMB1.01 (US$0.15)
and RMB0.98 (US$0.14), respectively, compared with
RMB0.77 and RMB0.73, respectively, for the same period of
last year.
- Total student enrollment(4) reached 200,177,
representing an increase of 26.9% from 157,759 during the fiscal
year 2019.
(1) Adjusted
operating income/loss is defined as operating income/loss excluding
share-based compensation expenses and impairment
loss on intangible assets and goodwill.
|
(2) Adjusted net
income/loss is defined as net income/loss excluding
share-based compensation expenses, fair value change of
investments and impairment loss on intangible assets and goodwill
(net of tax effect).
|
(3) Adjusted
basic/diluted net income/loss per ADS attributable to ordinary
shareholders is defined as basic/diluted net income/loss per
ADS attributable to ordinary shareholders excluding share-based
compensation expenses per ADS attributable to ordinary
shareholders,
fair value change of investments per ADS attributable to ordinary
shareholders and impairment loss on intangible assets and
goodwill
(net of tax effect) per ADS attributable to ordinary
shareholders.
|
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.
|
(4) 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.
|
"We delivered resilient results in the fourth quarter of fiscal
year 2020," said Ms. Yi (Joanne)
Zuo, the Director and Chief Executive Officer of Four
Seasons Education. "The COVID-19 outbreak had a significant impact
on our normal operations, but thanks to the online infrastructure
and business presence we have been developing since 2018, we
managed to swiftly shift our offline model for courses covering all
academic subjects to online delivery. Our quick response enabled us
to successfully retain the majority of our enrolled students by
providing them diversified high-quality courses online during the
lockdown period. This efficient transition also validates our
online-merging-offline ("OMO") strategy and demonstrates our
ability to serve a substantially higher number of students through
livestreaming and pre-recorded classes. Our impressive student
retention under such circumstances is a clear testament to our
strong brand and students' deep trust in our courseware and
teaching quality."
"On the financial front, on top of our topline growth compared
with the fourth quarter of last year, we delivered robust gross
profit growth of 32.4% year-over-year, with gross margin for the
fourth quarter expanding 595 basis points year-over-year to reach
34.9%. In addition, we continued with our cost control measures.
All these efforts helped us accomplish a solid fiscal year 2020
with topline growth of 15.9% year-over-year, which illustrates the
healthy development and resilience of our business."
"Since the fourth quarter, especially after the outbreak of
COVID-19, we have further consolidated our offline resources of
education and operations with online technology. While we are still
waiting for the PRC government to ease the current containment
policies with a clear timetable for reopening offline facilities,
our students have been learning with us online. Looking forward,
after this pandemic being fully contained, we plan to continue to
offer a considerable portion of courses online in addition to those
to be taught offline in our learning centers. As we consistently
offer engaging and diversified courses to a broad student group at
different grade levels, we will keep solidifying and developing our
OMO model to bring more options to our students with superior
learning experience. We believe such a strategy will allow us to
remain the maximized flexibility. More importantly, we believe that
our strong balance sheet and cash position will enable us to
execute our strategy and make selective investments with sufficient
capital support," Ms. Zuo concluded.
Fourth Quarter Fiscal Year 2020 Financial Results
Revenue increased by 9.8% to RMB71.1 million (US$10.2
million) for the fourth quarter of fiscal year 2020 from
RMB64.7 million in the same period of
last year, primarily attributable to the healthy ramp-up of new
learning centers opened by the Company during fiscal year 2019 and
the expanded course offerings.
Cost of revenue increased by 0.6% to RMB46.3 million (US$6.6
million) for the fourth quarter of fiscal year 2020 from
RMB46.0 million in the same period of
last year.
Gross profit increased by 32.4% to RMB24.8 million (US$3.5
million) for the fourth quarter of fiscal year 2020 from
RMB18.7 million in the same period of
last year.
General and administrative expenses increased by
1.5% to RMB39.8 million (US$5.7 million) for the fourth quarter of fiscal
year 2020 from RMB39.2 million in the
same period of last year.
Impairment loss on intangible assets and goodwill was
RMB145.4 million (US$20.8 million) for the fourth quarter of fiscal
year 2020, compared to RMB0.6 million
in the same period of last year, mainly due to the decline in a
reporting unit's fair value.
Sales and marketing expenses decreased by 15.0% to
RMB7.7 million (US$1.1 million) for the fourth quarter of fiscal
year 2020 from RMB9.1 million in
the same period of last year, primarily attributable to the
decrease of advertising due to the impact of COVID-19.
Operating loss was RMB168.2
million (US$24.1 million) for
the fourth quarter of fiscal year 2020, compared with RMB30.1 million in the same period of last year.
Adjusted operating loss(1) (non-GAAP), which is calculated as operating loss
excluding share-based compensation expenses and impairment loss on
intangible assets and goodwill, was RMB15.1
million (US$2.2 million) for
the fourth quarter of fiscal year 2020, compared with RMB20.4 million in the same period of last
year.
Other income, net was RMB4.9
million (US$0.7 million) for
the fourth quarter of fiscal year 2020, compared with RMB2.7 million in the same period of last year,
primarily due to investment fair value change.
Income tax benefit was RMB15.7 million (US$2.3
million) for the fourth quarter of fiscal year 2020,
compared with RMB8.1 million in the
same period of last year, mainly from the tax effect of intangible
assets impairment .
Net loss was RMB145.4
million (US$20.8 million)
during the fourth quarter of fiscal year 2020, compared with
RMB18.5 million in the same
period of last year. Adjusted net loss(2)
(non-GAAP), which is calculated as net loss excluding share-based compensation
expenses, fair value change of the Company's investments and
impairment loss on intangible assets and goodwill (net of tax
effect), was RMB4.7 million
(US$0.7 million), compared with
RMB11.7 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 2020 were
both RMB3.11 (US$0.44), compared with both RMB0.36, for the same period of last
year. Adjusted basic and diluted net loss per ADS
attributable to ordinary
shareholders(3) (non-GAAP) for the
fourth quarter of fiscal year 2020 were both RMB0.07 (US$0.01),
compared with both RMB0.22, for the
same period of last year.
Cash and cash equivalents. As of February 29, 2020, the Company had cash and cash
equivalents of RMB404.7 million
(US$57.9 million), compared with
RMB439.6 million as of February 28, 2019.
Fiscal Year 2020 Financial Results
Revenue increased by 15.9% to RMB389.0 million (US$55.7
million) for the fiscal year 2020 from RM335.6 million in the same period of last year,
primarily attributable to the healthy ramp-up of new learning
centers opened by the Company during fiscal year 2019, and the
increase in student enrollment as a result of the expanded course
offerings with higher diversification.
Cost of revenue increased by 16.9% to RMB200.9 million (US$28.7
million) for the fiscal year 2020 from RMB171.8 million in the same period of last year,
primarily attributable to the increase in faculty staff.
Gross profit increased by 14.8% to RMB188.1 million (US$26.9
million) for the fiscal year 2020 from RMB163.8 million in the same period of last
year.
General and administrative expenses increased by
8.6% to RMB139.4 million
(US$19.9 million) for the fiscal year
2020 from RMB128.3 million in the
same period of last year due to the increased staff cost,
depreciation expenses and amortization, learning center management
fee and other receivable allowance.
Impairment loss on intangible assets and goodwill was
RMB145.4 million (US$20.8 million) for the fiscal year 2020,
compared to RMB0.6 million in the
same period of last year, mainly due to the decline in a reporting
unit's fair value.
Sales and marketing expenses increased by 1.7% to
RMB34.4 million (US$4.9 million) for the fiscal year 2020 from
RMB33.8 million in the same period of
last year.
Operating loss was RMB131.0
million (US$18.7 million) for
the fiscal year 2020 compared with operating income of RMB1.1 million in the same period of last
year. Adjusted operating income(1)
(non-GAAP), which is calculated as operating income/loss
excluding share-based compensation expenses and impairment loss on
intangible assets and goodwill, increased by 33.3% to RMB45.2 million (US$6.5
million) for the fiscal year 2020 from RMB33.9 million in the same period of last
year.
Other income, net reached RMB11.1
million (US$1.6 million) for
the fiscal year 2020, compared with other expenses of RMB3.3 million in the same period of last year,
primarily due to investment fair value change and foreign
exchange.
Income tax expenses were RMB4.2 million (US$0.6
million) for the fiscal year 2020, compared with
RMB10.1 million in the same period of
last year, mainly attributable to the tax effect of intangible
assets impairment.
Net loss was RMB109.6
million (US$15.7 million)
during the fiscal year 2020, compared with RMB1.5 million in the same period of last
year. Adjusted net income(2) (non-GAAP), which is
calculated as net income/loss excluding share-based compensation
expenses, fair value change of the Company's investments and
impairment loss on intangible assets and goodwill (net of tax
effect), increased by 32.5% to RMB47.9
million (US$6.8 million) from
RMB36.1 million in the same period of
last year.
Basic and diluted net loss per ADS attributable to ordinary
shareholders for the fiscal year 2020 were both RMB2.31 (US$0.33),
compared with both RMB0.01, for the
same period of last year. Adjusted basic and diluted net income
per ADS attributable to ordinary shareholders(3)
(non-GAAP) for the fiscal year 2020 were RMB1.01 (US$0.15)
and RMB0.98 (US$0.14), respectively, compared with
RMB0.77 and RMB0.73, respectively, for the same period of
last year.
Business Outlook
For the first quarter of fiscal year 2021, the Company
expects to generate revenue in the range of RMB55.7 million to RMB60.0 million.
The above guidance reflects the Company's current and
preliminary view, which is subject to change, particularly in
consideration of uncertainties related to the COVID-19 outbreak,
among others.
Conference Call
The Company's management will host an earnings conference call
at 8:00 AM U.S. Eastern Time on
May 18, 2020 (8:00 PM Beijing/Hong
Kong time on May 18, 2020)
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, China
(toll free):
|
800-905-945
|
Hong Kong,
China:
|
852-3018-4992
|
Mainland 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 25, 2020, by dialing the following telephone
numbers:
United States (toll
free):
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Replay Access
Code:
|
10144108
|
About Four Seasons Education (Cayman) Inc.
Four Seasons Education (Cayman) Inc. is a leading Shanghai-based educational company dedicated
to providing comprehensive after-school education services with a
focus on high-quality math education. The Company's vision is to
unlock students' intellectual potential through high quality and
effective 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. Over the years, the quality of the Company's education
services has been demonstrated by its student outstanding
academic performance.
About Non-GAAP Financial Measures
In evaluating the Company's business, the Company considers and
uses certain non-GAAP measures, including primarily adjusted
operating income/loss, adjusted net income/loss and adjusted basic
and diluted net income/loss per ADS attributable to ordinary
shareholders, as supplemental measures to review and assess the
Company's operating performance. Adjusted operating income/loss is
defined as operating income/loss excluding share-based compensation
expenses and impairment loss on intangible assets and goodwill.
Adjusted net income/loss is defined as net income/loss excluding
share-based compensation expenses, fair value change of investments
and impairment loss on intangible assets and goodwill (net of tax
effect). Adjusted basic/ diluted net income/loss per ADS
attributable to ordinary shareholders is defined as basic/diluted
net income/loss per ADS attributable to ordinary shareholders
excluding share-based compensation expenses per ADS attributable to
ordinary shareholders, fair value change of investments measured at
fair value per ADS attributable to ordinary shareholders and
impairment loss on intangible assets and goodwill (net of tax
effect) per ADS attributable to ordinary shareholders. 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, fair
value change of investments measured at fair value and impairment
loss on intangible assets and goodwill (where applicable) 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 (where
applicable) 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 RMB6.9906 to US$1.00, the rate set forth in the H.10
statistical release of the U.S. Federal Reserve Board on
February 28, 2020.
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 annual reports on Form 20-F.
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) 6508-0677
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
29,
|
|
|
February
29,
|
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
439,580
|
|
|
|
404,652
|
|
|
|
57,885
|
|
Accounts receivable
and contract assets
|
|
|
811
|
|
|
|
1,261
|
|
|
|
180
|
|
Amounts due from
related parties
|
|
|
119
|
|
|
|
-
|
|
|
|
-
|
|
Other receivables,
deposits and other assets
|
|
|
22,517
|
|
|
|
18,484
|
|
|
|
2,644
|
|
Short-term
investments
|
|
|
32,715
|
|
|
|
10,000
|
|
|
|
1,430
|
|
Long-term investment
under fair value - current
|
|
|
-
|
|
|
|
181,821
|
|
|
|
26,009
|
|
Total current
assets
|
|
|
495,742
|
|
|
|
616,218
|
|
|
|
88,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
|
31,655
|
|
|
|
37,703
|
|
|
|
5,393
|
|
Property and
equipment, net
|
|
|
27,000
|
|
|
|
19,749
|
|
|
|
2,825
|
|
Operating lease
right-of-use assets
|
|
|
-
|
|
|
|
190,074
|
|
|
|
27,190
|
|
Intangible assets,
net
|
|
|
43,897
|
|
|
|
8,765
|
|
|
|
1,254
|
|
Goodwill
|
|
|
149,775
|
|
|
|
35,163
|
|
|
|
5,030
|
|
Deferred tax
assets
|
|
|
9,536
|
|
|
|
13,445
|
|
|
|
1,923
|
|
Equity method
investments
|
|
|
219
|
|
|
|
1,295
|
|
|
|
185
|
|
Long-term investments
under fair value
|
|
|
162,937
|
|
|
|
104,414
|
|
|
|
14,936
|
|
Rental
deposits—non-current
|
|
|
11,293
|
|
|
|
10,790
|
|
|
|
1,544
|
|
Total non-current
assets
|
|
|
436,312
|
|
|
|
421,398
|
|
|
|
60,280
|
|
TOTAL
ASSETS
|
|
|
932,054
|
|
|
|
1,037,616
|
|
|
|
148,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts due to related
parties
|
|
|
10,719
|
|
|
|
1,323
|
|
|
|
189
|
|
Accrued expenses and
other current liabilities
|
|
|
56,566
|
|
|
|
75,118
|
|
|
|
10,746
|
|
Operating lease
liabilities – current
|
|
|
-
|
|
|
|
51,842
|
|
|
|
7,416
|
|
Income tax
payable
|
|
|
9,065
|
|
|
|
12,789
|
|
|
|
1,829
|
|
Deferred
revenue
|
|
|
87,870
|
|
|
|
71,946
|
|
|
|
10,290
|
|
Total current
liabilities
|
|
|
164,220
|
|
|
|
213,018
|
|
|
|
30,470
|
|
FOUR SEASONS
EDUCATION (CAYMAN) INC.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands,
except share data and per share data)
|
|
|
|
As
of
|
|
|
|
February
28,
|
|
|
February
29,
|
|
|
February
29,
|
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax
liability
|
|
|
10,903
|
|
|
|
2,136
|
|
|
|
306
|
|
Operating lease
liabilities – non-current
|
|
|
-
|
|
|
|
147,510
|
|
|
|
21,101
|
|
Total non-current
liabilities
|
|
|
10,903
|
|
|
|
149,646
|
|
|
|
21,407
|
|
TOTAL
LIABILITIES
|
|
|
175,123
|
|
|
|
362,664
|
|
|
|
51,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
|
756,931
|
|
|
|
674,952
|
|
|
|
96,551
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
|
932,054
|
|
|
|
1,037,616
|
|
|
|
148,428
|
|
FOUR SEASONS
EDUCATION (CAYMAN) INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except share data and per share data)
|
|
|
|
Three Months Ended
February 28/29,
|
|
|
Twelve Months
Ended February 28/29
|
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Revenue
|
|
|
64,700
|
|
|
|
71,065
|
|
|
|
10,166
|
|
|
|
335,643
|
|
|
|
389,049
|
|
|
|
55,653
|
|
Cost of
revenue
|
|
|
(45,984)
|
|
|
|
(46,277)
|
|
|
|
(6,620)
|
|
|
|
(171,822)
|
|
|
|
(200,933)
|
|
|
|
(28,743)
|
|
Gross
profit
|
|
|
18,716
|
|
|
|
24,788
|
|
|
|
3,546
|
|
|
|
163,821
|
|
|
|
188,116
|
|
|
|
26,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
(39,237)
|
|
|
|
(39,824)
|
|
|
|
(5,697)
|
|
|
|
(128,349)
|
|
|
|
(139,370)
|
|
|
|
(19,937)
|
|
Sales and marketing
expenses
|
|
|
(9,066)
|
|
|
|
(7,710)
|
|
|
|
(1,103)
|
|
|
|
(33,783)
|
|
|
|
(34,367)
|
|
|
|
(4,916)
|
|
Impairment loss on
intangible assets and goodwill
|
|
|
(557)
|
|
|
|
(145,416)
|
|
|
|
(20,802)
|
|
|
|
(557)
|
|
|
|
(145,416)
|
|
|
|
(20,802)
|
|
Operating (loss)/
income
|
|
|
(30,144)
|
|
|
|
(168,162)
|
|
|
|
(24,056)
|
|
|
|
1,132
|
|
|
|
(131,037)
|
|
|
|
(18,745)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidy
income
|
|
|
5
|
|
|
|
1,075
|
|
|
|
154
|
|
|
|
4,150
|
|
|
|
9,572
|
|
|
|
1,369
|
|
Interest income,
net
|
|
|
891
|
|
|
|
1,085
|
|
|
|
155
|
|
|
|
6,756
|
|
|
|
5,229
|
|
|
|
748
|
|
Other income/
(expenses), net
|
|
|
2,707
|
|
|
|
4,914
|
|
|
|
703
|
|
|
|
(3,311)
|
|
|
|
11,080
|
|
|
|
1,585
|
|
(Loss)/ income
before income taxes and loss from
equity
method investments
|
|
|
(26,541)
|
|
|
|
(161,088)
|
|
|
|
(23,044)
|
|
|
|
8,727
|
|
|
|
(105,156)
|
|
|
|
(15,043)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit/
(expense)
|
|
|
8,113
|
|
|
|
15,738
|
|
|
|
2,251
|
|
|
|
(10,116)
|
|
|
|
(4,189)
|
|
|
|
(599)
|
|
Loss from equity
method investments
|
|
|
(81)
|
|
|
|
(21)
|
|
|
|
(3)
|
|
|
|
(81)
|
|
|
|
(224)
|
|
|
|
(32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
(18,509)
|
|
|
|
(145,371)
|
|
|
|
(20,796)
|
|
|
|
(1,470)
|
|
|
|
(109,569)
|
|
|
|
(15,674)
|
|
Net loss attributable
to non-controlling interest
|
|
|
(948)
|
|
|
|
(1,622)
|
|
|
|
(232)
|
|
|
|
(869)
|
|
|
|
(76)
|
|
|
|
(11)
|
|
Net loss
attributable to Four Seasons Education
(Cayman)
Inc.
|
|
|
(17,561)
|
|
|
|
(143,749)
|
|
|
|
(20,564)
|
|
|
|
(601)
|
|
|
|
(109,493)
|
|
|
|
(15,663)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.73)
|
|
|
|
(6.21)
|
|
|
|
(0.89)
|
|
|
|
(0.02)
|
|
|
|
(4.63)
|
|
|
|
(0.66)
|
|
Diluted
|
|
|
(0.73)
|
|
|
|
(6.21)
|
|
|
|
(0.89)
|
|
|
|
(0.02)
|
|
|
|
(4.63)
|
|
|
|
(0.66)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in calculating
net loss
per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
24,065,533
|
|
|
|
23,143,702
|
|
|
|
23,143,702
|
|
|
|
24,053,492
|
|
|
|
23,668,916
|
|
|
|
23,668,916
|
|
Diluted
|
|
|
24,065,533
|
|
|
|
23,143,702
|
|
|
|
23,143,702
|
|
|
|
24,053,492
|
|
|
|
23,668,916
|
|
|
|
23,668,916
|
|
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 28/29,
|
|
|
Twelve Months
Ended February 28/29
|
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Net
loss
|
|
|
(18,509)
|
|
|
|
(145,371)
|
|
|
|
(20,796)
|
|
|
|
(1,470)
|
|
|
|
(109,569)
|
|
|
|
(15,674)
|
|
Other
comprehensive (loss)/ income, net of
tax
of nil
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
(18,721)
|
|
|
|
(1,687)
|
|
|
|
(241)
|
|
|
|
29,916
|
|
|
|
24,484
|
|
|
|
3,502
|
|
Comprehensive
(loss)/ income
|
|
|
(37,230)
|
|
|
|
(147,058)
|
|
|
|
(21,037)
|
|
|
|
28,446
|
|
|
|
(85,085)
|
|
|
|
(12,172)
|
|
Less: Comprehensive
loss attributable to
non-controlling
interest
|
|
|
(948)
|
|
|
|
(1,622)
|
|
|
|
(232)
|
|
|
|
(869)
|
|
|
|
(76)
|
|
|
|
(11)
|
|
Comprehensive
(loss)/ income attributable
to Four
Seasons Education (Cayman) Inc.
|
|
|
(36,282)
|
|
|
|
(145,436)
|
|
|
|
(20,805)
|
|
|
|
29,315
|
|
|
|
(85,009)
|
|
|
|
(12,161)
|
|
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 28/29,
|
|
Twelve Months
Ended February 28/29
|
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Operating (loss)/
income
|
|
(30,144)
|
|
(168,162)
|
|
(24,056)
|
|
1,132
|
|
(131,037)
|
|
(18,745)
|
Add: share-based
compensation expenses
|
|
9,149
|
|
7,610
|
|
1,089
|
|
32,247
|
|
30,859
|
|
4,414
|
Add: impairment loss
on intangible assets and goodwill
|
|
557
|
|
145,416
|
|
20,802
|
|
557
|
|
145,416
|
|
20,802
|
Adjusted operating
(loss)/ income (non-GAAP)
|
|
(20,438)
|
|
(15,136)
|
|
(2,165)
|
|
33,936
|
|
45,238
|
|
6,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(18,509)
|
|
(145,371)
|
|
(20,796)
|
|
(1,470)
|
|
(109,569)
|
|
(15,674)
|
Add: share-based
compensation expenses (net of tax effect of nil)
|
|
9,149
|
|
7,610
|
|
1,089
|
|
32,247
|
|
30,859
|
|
4,414
|
Add: fair value
change of investments, excluding foreign currency
translation
adjustment (net of tax effect of nil)
|
|
(2,883)
|
|
(4,660)
|
|
(667)
|
|
4,783
|
|
(11,134)
|
|
(1,593)
|
Add: impairment loss
on intangible assets and goodwill
(net of tax
effect of 7,701)
|
|
557
|
|
137,715
|
|
19,700
|
|
557
|
|
137,715
|
|
19,700
|
Adjusted net
(loss)/ income (non-GAAP)
|
|
(11,686)
|
|
(4,706)
|
|
(674)
|
|
36,117
|
|
47,871
|
|
6,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per
ADS attributable to ordinary shareholders
|
|
(0.36)
|
|
(3.11)
|
|
(0.44)
|
|
(0.01)
|
|
(2.31)
|
|
(0.33)
|
Add: share-based
compensation expenses per ADS attributable to
ordinary
shareholders
|
|
0.19
|
|
0.16
|
|
0.02
|
|
0.67
|
|
0.65
|
|
0.09
|
Add: fair value
change of investments per ADS attributable to
ordinary
shareholders
|
|
(0.06)
|
|
(0.10)
|
|
(0.01)
|
|
0.10
|
|
(0.24)
|
|
(0.03)
|
Add: impairment loss
on intangible assets and goodwill
per ADS
attributable to ordinary shareholders
|
|
0.01
|
|
2.98
|
|
0.42
|
|
0.01
|
|
2.91
|
|
0.42
|
Adjusted basic net
(loss)/ income per ADS attributable to
ordinary
shareholders (non-GAAP)
|
|
(0.22)
|
|
(0.07)
|
|
(0.01)
|
|
0.77
|
|
1.01
|
|
0.15
|
Diluted net loss
per ADS attributable to
ordinary
shareholders
|
|
(0.36)
|
|
(3.11)
|
|
(0.44)
|
|
(0.01)
|
|
(2.31)
|
|
(0.33)
|
Add: share-based
compensation expenses per ADS attributable to
ordinary
shareholders
|
|
0.19
|
|
0.16
|
|
0.02
|
|
0.64
|
|
0.63
|
|
0.09
|
Add: fair value
change of investments per ADS attributable to
ordinary
shareholders
|
|
(0.06)
|
|
(0.10)
|
|
(0.01)
|
|
0.09
|
|
(0.23)
|
|
(0.03)
|
Add: impairment loss
on intangible assets and goodwill
per ADS
Attributable to ordinary shareholders
|
|
0.01
|
|
2.98
|
|
0.42
|
|
0.01
|
|
2.89
|
|
0.41
|
Adjusted diluted
net (loss)/ income per ADS attributable to
ordinary
shareholders (non-GAAP)
|
|
(0.22)
|
|
(0.07)
|
|
(0.01)
|
|
0.73
|
|
0.98
|
|
0.14
|
Weighted average ADSs
used in calculating earnings per ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
48,131,065
|
|
46,287,404
|
|
46,287,404
|
|
48,106,984
|
|
47,337,831
|
|
47,337,831
|
Diluted
|
|
48,131,065
|
|
46,287,404
|
|
46,287,404
|
|
50,585,609
|
|
48,836,226
|
|
48,836,226
|
View original
content:http://www.prnewswire.com/news-releases/four-seasons-education-reports-fourth-quarter-and-fiscal-2020-unaudited-financial-results-301060647.html
SOURCE Four Seasons Education Inc.