BEIJING, Jan.
22, 2021 /PRNewswire/ -- New Oriental Education &
Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU
and SEHK: 9901), the largest provider of private educational
services in China, today announced
its unaudited financial results for the second fiscal quarter ended
November 30, 2020, which is the
second quarter of New Oriental's fiscal year 2021.
Financial Highlights for the Second Fiscal Quarter Ended
November 30, 2020
- Total net revenues increased by 13.1% year-over-year to
US$887.7 million for the second
fiscal quarter of 2021.
- Operating loss was US$32.1 million for the second fiscal
quarter of 2021, compared to an income
of US$25.3 million in the same period of the prior
fiscal year.
- Net income attributable to New Oriental was US$53.9 million, represented an increase of 0.9%
in the same period of the prior fiscal year.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
2Q
FY2021
|
2Q
FY2020
|
% of
change
|
Net
revenues
|
887,689
|
785,211
|
13.1%
|
Operating (loss) /
income
|
(32,147)
|
25,299
|
-
|
Non-GAAP operating
(loss) / income (2)(3)
|
(13,667)
|
36,514
|
-
|
Net income
attributable to New Oriental
|
53,902
|
53,437
|
0.9%
|
Non-GAAP net income
attributable to New Oriental (2)(3)
|
69,140
|
56,987
|
21.3%
|
Net income per ADS
attributable to New Oriental - basic
|
0.33
|
0.34
|
-0.9%
|
Net income per ADS
attributable to New Oriental - diluted
|
0.33
|
0.34
|
-0.7%
|
Non-GAAP net income
per ADS attributable to New Oriental -
basic(3)(4)
|
0.43
|
0.36
|
19.1%
|
Non-GAAP net income
per ADS attributable to New Oriental -
diluted(3)(4)
|
0.43
|
0.36
|
19.4%
|
|
|
|
|
(in thousands US$,
except per ADS(1) data)
|
1H
FY2021
|
1H
FY2020
|
% of
change
|
Net
revenues
|
1,874,055
|
1,856,988
|
0.9%
|
Operating
income
|
118,158
|
271,495
|
-56.5%
|
Non-GAAP operating
income (2)(3)
|
152,471
|
293,730
|
-48.1%
|
Net income
attributable to New Oriental
|
228,554
|
262,427
|
-12.9%
|
Non-GAAP net income
attributable to New Oriental (2)(3)
|
253,666
|
287,149
|
-11.7%
|
Net income per ADS
attributable to New Oriental - basic
|
1.43
|
1.66
|
-13.9%
|
Net income per ADS
attributable to New Oriental - diluted
|
1.42
|
1.65
|
-13.6%
|
Non-GAAP net income
per ADS attributable to New Oriental -
basic(3)(4)
|
1.58
|
1.81
|
-12.6%
|
Non-GAAP net income
per ADS attributable to New Oriental -
diluted(3)(4)
|
1.58
|
1.80
|
-12.4%
|
|
|
|
|
|
(1) Each
ADS represents one common share. The Hong Kong-listed shares are
fully fungible with the ADSs listed on NYSE.
|
(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 / (loss) 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 attributable to New Oriental is
computed using Non-GAAP net
income attributable to New Oriental and the same number of shares
and ADSs used in GAAP basic and
diluted EPS calculation.
|
Operating Highlights for the Second Fiscal Quarter Ended
November 30, 2020
- Total student enrollments in academic subjects tutoring and
test preparation courses increased by 10.4% year-over-year to
approximately 4,183,100 for the second fiscal quarter of 2021.
- The total number of schools and learning centers was 1,518 as
of November 30, 2020, an increase of
214 compared to 1,304 as of November 30,
2019, and an increase of 46 compared to 1,472 as of
August 31, 2020. The total number of
schools was 117 as of November 30,
2020.
Michael Yu, New Oriental's
Executive Chairman, commented, "We are pleased to see the recovery
of businesses for the autumn semester after the resumption of
schools and learning centers since the end of September
2020. As the pandemic situation in China has been stabilized and effectively
controlled during the quarter, our businesses in most of the cities
resumed and managed to deliver encouraging results. Net revenue for
the second quarter was in line with our expectation, up 13.1% year
over year. Our key growth driver, K-12 all-subjects after-school
tutoring business, achieved year-over-year revenue growth of
approximately 26%. U-Can middle and high school all-subjects
after-school tutoring business grew by approximately 27%, while our
POP Kids program recorded a growth of approximately 24%. Overseas
related businesses are still under pressure due to the uncertainty
of the pandemic situation and travel restrictions around the globe.
The overseas test preparation business declined by approximately
29%, yet the overseas consulting and study tour business increased
by 6%, respectively. Looking ahead, we believe our business are in
good recovery progress and will gradually pickup the momentum in
the coming quarters. As one of the market leaders in China, we are confident that our exceptional
products and services, as well as our constantly enhanced learning
experience would enable us to capture more market share and deliver
long-term value for our shareholders."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "We expect the industry will
undergo a wave of market consolidation once the pandemic fades
away. We remain committed to ramp up our expansion effort to get
prepared for further taking market share from other players
post-COVID. During this quarter, we opened five new offline
training schools in new cities. The total square meters of
classroom area by the end of this quarter increased approximately
21% year-over-year, and 4% quarter-over-quarter. Student
enrollments for K-12 after-school tutoring business during the
quarter increase by 15% year-over-year. At the same time, we
continued to execute our OMO (online merging offline) strategy,
which enables our services to virtually reach a broader pool of
students in existing cities and the surrounding satellite
cities. In the autumn semester, we piloted the OMO online courses
in vast majority existing cities and around 20 new surrounding
satellite cities, attracting a promising number of new customers,
accompanied by satisfactory student retention with low customer
acquisition cost. We believe these OMO initiatives, featured with
localized and differentiating content, will effectively boost
enrollments and revenue with low customer acquisition cost and
enable us to capture more market opportunity and improve our
overall profitability over the long term. Last but not least, our
pure online education platform, Koolearn.com has also invested more
resources in upgrading their APP and online platforms, enhancing
students' overall in-class learning experience and the teacher
training system."
Stephen Zhihui Yang, New
Oriental's Executive President and Chief Financial Officer,
commented, "With the gradual recovery of our topline, our margins
trended better. Our Non-GAAP operating margin for the quarter was
negative 1.5%, down 620 basis points year-over-year, represented a
smaller year-over-year decline comparing with the previous quarter.
Non-GAAP net margin for the quarter was 7.8%, up 50 basis points
year-over-year. We will continue to make efforts on
cost control and reducing expenditures during pandemics period and
be cautious in making investment in our OMO initiatives and pure
online education platform to keep balancing the growth and
profitability. We are confident in a better margin recovery when
the pandemic is over. "
Financial Results for the Second Fiscal Quarter Ended
November 30, 2020
Net Revenues
For the second fiscal quarter of 2021, New Oriental reported net
revenues of US$887.7 million,
representing a 13.1% increase year-over-year. Net revenues from
educational programs and services for the second fiscal quarter
were US$833.0 million,
representing a 15.2% increase year-over-year. The growth was mainly
driven by increases in student enrollments in K-12 after-school
tutoring courses.
Total student enrollments in academic subjects tutoring and test
preparation courses in the second fiscal quarter of 2021 increased
by 10.4% year-over-year to approximately 4,183,100.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$919.8 million, representing a 21.0%
increase year-over-year. Non-GAAP operating costs and expenses for
the quarter, which exclude share-based compensation expenses, were
US$901.4 million, representing a
20.4% increase year-over-year.
- Cost of revenues increased by 26.4% year-over-year to
US$453.7 million, primarily due to
increases in teachers' compensation for more teaching hours and
higher rental costs for the increased number of schools and
learning centers in operation.
- Selling and marketing expenses increased by 23.9%
year-over-year to US$133.6 million,
primarily due to the addition of a number of customer service
representatives and marketing staffs with the aim of capturing the
new market opportunity during the COVID-19 period, especially for
new initiatives in K-12 tutoring on our pure online education
platform, Koolearn.com.
- General and administrative expenses for the quarter
increased by 13.5% year-over-year to US$332.6 million. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, were US$319.8 million,
representing a 13.4% increase year-over-year.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, increased by 64.8% to
US$18.5 million in the second
fiscal quarter of 2021.
Operating Loss / Income and Operating Margin
Operating loss for the quarter was US$32.1 million, compared to an income
of US$25.3 million in the same period of the prior fiscal
year. Non-GAAP loss from operations for the quarter was
US$13.7 million, compared to an
income of US$36.5 million in the same period of the prior
fiscal year.
Operating margin for the quarter was negative 3.6%,
compared to 3.2% in the same period of the prior fiscal year.
Non-GAAP operating margin, which excludes share-based compensation
expenses, for the quarter was negative 1.5%, compared to
4.7% in the same period of the prior fiscal year.
Net Income and EPS
Net income attributable to New Oriental for the quarter was
US$53.9 million, representing a 0.9%
increase from the same period of the prior fiscal year. Basic and
diluted earnings per ADS attributable to New Oriental were
US$0.33 and US$0.33, respectively.
Non-GAAP Net Income and Non-GAAP EPS
Non-GAAP net income attributable to New Oriental for the quarter
was US$69.1 million,
representing a 21.3% increase from the same period of the prior
fiscal year. Non-GAAP basic and diluted earnings per ADS
attributable to New Oriental were US$0.43 and US$0.43, respectively.
Cash Flow
Net operating cash flow for the second fiscal quarter of 2021
was approximately US$410.7 million.
Capital expenditures for the quarter were US$62.0 million, which were primarily
attributable to opening of 78 facilities and renovations at
existing learning centers.
Balance Sheet
As of November 30, 2020, New
Oriental had cash and cash equivalents of US$2,643.2 million, as compared to
US$915.1 million as of May 31, 2020. In addition, the Company had
US$416.1 million in term
deposits, US$3,035.3 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
second quarter of fiscal year 2021 was US$1,987.1 million, an increase of 26.5% as
compared to US$1,570.4 million
at the end of the second quarter of fiscal year 2020.
Financial Results for the Six Months Ended November 30, 2020
For the first six months of fiscal year 2021, New Oriental
reported net revenues of US$1,874.1
million, representing a 0.9% increase year-over-year.
Total student enrollments in academic subjects tutoring and test
preparation courses in the first six months of fiscal year 2021
increased by 11.7% to approximately 7,144,200.
Operating income for the first six months of fiscal year
2021 was US$118.2 million,
representing a 56.5% decrease year-over-year. Non-GAAP operating
income for the first six months of fiscal year 2021 was
US$152.5 million, representing a
48.1% decrease year-over-year.
Operating margin for the first six months of fiscal year 2021
was 6.3%, compared to 14.6% for the same period of the prior fiscal
year. Non-GAAP operating margin, which excludes share-based
compensation expenses for the first six months of fiscal year 2021,
was 8.1%, compared to 15.8% for the same period of the prior fiscal
year.
Net income attributable to New Oriental for the first six months
of fiscal year 2021 was US$228.6
million, representing a 12.9% decrease year-over-year. Basic
and diluted net income per ADS attributable to New Oriental for the
first six months of fiscal year 2021 amounted to US$1.43 and US$1.42, respectively.
Non-GAAP net income attributable to New Oriental for the first
six months of fiscal year 2021 was US$253.7
million, representing an 11.7% decrease year-over-year.
Non-GAAP basic and diluted net income per ADS attributable to New
Oriental for the first six months of fiscal year 2021 amounted to
US$1.58 and US$1.58, respectively.
Koolearn's Financial Highlights for the Six Months Ended
November 30, 2020
New Oriental's subsidiary, Koolearn Technology Holdings Limited
("Koolearn") (1797.SEHK), a leading online extracurricular
education service provider in China listed on the Hong Kong Stock Exchange,
announced its financial results under International Financial
Reporting Standards ("IFRS") for the first six months of fiscal
year 2021. Koolearn's financial information in this section is
presented in accordance with IFRS.
For the first six months ended November
30, 2020, Koolearn recorded revenues of RMB676.8 million (US$102.9
million), representing a 19.2% increase year-over-year, and
recorded a net loss of RMB674.4million (US$102.6
million), a 670.6% increase compared to a net loss of
RMB87.5 million (US$13.3 million) in the same period of the prior
fiscal year. Koolearn's gross profit was RMB153.1 million (US$23.3
million) and gross profit margin was 22.6% for the six
months ended November 30, 2020.
To capture the huge market opportunity in online education area,
Koolearn continued to invest more resources in executing new
initiatives in online K-12 after school tutoring business in fiscal
year 2021. This includes content development, teacher recruitment
and training, sales and marketing, R&D and other costs and
expenses that are necessary to drive the growth of new online
programs. Starting from fiscal year 2021, Koolearn also conducted a
restructuring of the college education business line with more
focus on redesigning and upgrading of products and services and
improving operational efficiency with more synergies between
Koolearn and offline schools in respect of branding, education
resources and services and multi-channel marketing. The online K-12
after-school tutoring business reported a year-over-year revenue
growth of approximately 162.9% and a year-over-year student
enrollment growth of approximately 143.4%. More specifically,
student enrolments for its location-based live interactive
after-school tutoring courses ("DFUB") and Koolearn K-12 courses
grew by 170.3% and 134.4% year-over-year, respectively. As of
November 30, 2020, the DFUB courses
have been released in 271 cities in China.
The translations of RMB amounts into U.S. dollars in this
section are presented solely for the convenience of the readers.
The conversion of RMB into U.S. dollars is based on the exchange
rate set forth in the H.10 statistical release of the Board of
Governors of the Federal Reserve System as of November 30, 2020, which was RMB6.5760 to US$1.00. The percentages stated in this section
are calculated based on the RMB amounts.
Other Developments
On November 9, 2020, New Oriental
successfully listed on the Main Board of The Stock Exchange of Hong
Kong Limited under the stock code "9901", with a global offering of
9,786,500 new common shares (including the exercise of the
over-allotment option on November 16,
2020). The Hong Kong-listed
shares are fully fungible with our ADSs listed on the New York
Stock Exchange, based on the ratio of one common share to one ADS.
The net proceeds from the global offering (including the issuance
under the over-allotment option), after deducting underwriting fees
and offering expenses, amounted to approximately HK$11,493.2 million (US$1,482.8 million).
Outlook for Third Quarter of Fiscal Year 2021
New Oriental anticipates total net revenues in the third quarter
of fiscal year 2021 (December 1, 2020
to February 28, 2021) to be in the
range of US$ 1,098.6 million to
US$1,144.8 million, representing
year-over-year growth in the range of 19% to 24%.
The above figures reflect New Oriental's current and preliminary
view, which is subject to change.
Conference Call Information
New Oriental's management will host an earnings conference call
at 8 AM on January 22, 2021, U.S. Eastern Time (9 PM on January 22,
2021, Beijing/Hong Kong
Time). Participants can join the conference using the below
options:
Dialling-in to the conference call:
Please register in advance of the conference, using the link
provided below. Upon registering, you will be provided with
participant dial-in numbers, passcode and unique registrant ID.
Conference call registration link:
https://apac.directeventreg.com/registration/event/1083313. It
will automatically direct you to the registration page of "New
Oriental Second Fiscal Quarter 2021 Earnings Conference Call" where
you may fill in your details for RSVP. If it requires you to enter
a participant conference ID, please enter "1083313".
In the 10 minutes prior to the call start time, you may use the
conference access information (including dial in number(s), direct
event passcode and registrant ID) provided in the confirmation
email received at the point of registering.
Joining the conference call via a live webcast:
Additionally, a live and archived webcast of the conference call
will be available at http://investor.neworiental.org.
Listening to the conference call replay:
A replay of the conference call may be accessed by phone at the
following number until January 28,
2021:
International:
|
+61 2 8199
0299
|
Passcode:
|
1083313
|
About New Oriental
New Oriental is the largest provider of private educational
services in China offering a wide
range of educational programs, services and products to a varied
student population throughout China. New Oriental's program, service and
product offerings consist of K-12 after-school tutoring, test
preparation, language training for adults, pre-school education,
primary and secondary school education, education materials and
distribution, online education, and other services. New Oriental is
listed on NYSE (NYSE: EDU) and SEHK (9901.SEHK) respectively. New
Oriental's ADSs, each of which represents one common share. The
Hong Kong-listed shares are fully
fungible with the ADSs listed on NYSE.
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 third quarter of fiscal year 2021, quotations
from management in this announcement, as well as New Oriental's
strategic and operational plans, contain forward-looking
statements. New Oriental may also make written or oral
forward-looking statements in its reports filed or furnished to the
U.S. Securities and Exchange Commission, in its annual reports to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about New Oriental's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: our ability to attract students without a significant
decrease in course fees; our ability to continue to hire, train and
retain qualified teachers; our ability to maintain and enhance our
"New Oriental" brand; our ability to effectively and efficiently
manage the expansion of our school network and successfully execute
our growth strategy; the outcome of ongoing, or any future,
litigation or arbitration, including those relating to copyright
and other intellectual property rights; competition in the private
education sector in China; changes in our revenues and certain cost
or expense items as a percentage of our revenues; the expected
growth of the Chinese private education market; Chinese
governmental policies relating to private educational services and
providers of such services; health epidemics and other outbreaks in
China; and general economic conditions in China. Further
information regarding these and other risks is included in our
annual report on Form 20-F and other documents filed with the
Securities and Exchange Commission. New Oriental does not undertake
any obligation to update any forward-looking statement, except as
required under applicable law. All information provided in this
press release and in the attachments is as of the date of this
press release, and New Oriental undertakes no duty to update such
information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement New Oriental's consolidated financial results
presented in accordance with GAAP, New Oriental uses the following
measures defined as non-GAAP financial measures by the SEC: net
income excluding share-based compensation expenses and gain /
(loss) from fair value change of long-term investments, operating
income / (loss) excluding share-based compensation expenses,
operating cost 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 gain /
(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 gain / (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 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 expenses and gain / (loss) from fair value
change of long-term investments that has been and will continue to
be for the foreseeable future a significant recurring expense in
our business. Management compensates for these limitations by
providing specific information regarding the GAAP amounts excluded
from each non-GAAP measure. The accompanying tables have more
details on the reconciliations between GAAP financial measures that
are most directly comparable to non-GAAP financial measures.
Contacts
For investor and media inquiries, please contact:
Ms. Rita
Fong
|
Ms. Sisi
Zhao
|
FTI
Consulting
|
New Oriental
Education & Technology Group Inc.
|
Tel: +852 3768
4548
|
Tel:
+86-10-6260-5568
|
Email:
rita.fong@fticonsulting.com
|
Email:
zhaosisi@xdf.cn
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
As of November
30
|
|
As of May
31
|
2020
|
|
2020
|
(Unaudited)
|
|
(Audited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
2,643,243
|
|
915,057
|
Term
deposits
|
416,134
|
|
284,793
|
Short-term
investments
|
3,035,283
|
|
2,318,280
|
Accounts receivable,
net
|
6,122
|
|
4,178
|
Inventory,
net
|
30,737
|
|
31,324
|
Prepaid expenses and
other current assets, net
|
226,835
|
|
199,404
|
Amounts due from
related parties, current
|
5,866
|
|
3,384
|
Total current
assets
|
6,364,220
|
|
3,756,420
|
|
|
|
|
Restricted cash,
non-current
|
4,881
|
|
4,367
|
Property and
equipment, net
|
779,193
|
|
672,455
|
Land use rights,
net
|
13,511
|
|
6,037
|
Amounts due from
related parties, non-current
|
2,335
|
|
22,709
|
Long-term
deposits
|
66,296
|
|
62,116
|
Intangible assets,
net
|
10,141
|
|
10,246
|
Goodwill,
net
|
93,195
|
|
80,366
|
Long-term investments,
net
|
507,733
|
|
431,101
|
Deferred tax assets,
non-current, net
|
57,509
|
|
63,324
|
Right-of-use
assets
|
1,562,225
|
|
1,425,466
|
Other non-current
assets
|
16,721
|
|
22,278
|
Total
assets
|
9,477,960
|
|
6,556,885
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable (including accounts payable of the consolidated variable
interest entities without
recourse to New Oriental of US$31,658 and US$32,400 as of May
31, 2020 and November 30, 2020,
respectively)
|
32,975
|
|
33,147
|
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$581,576 and US$593,688 as of May 31, 2020 and November 30, 2020,
respectively)
|
652,821
|
|
634,619
|
Income taxes
payable (including income tax payable of the consolidated variable
interest entities
without recourse to New Oriental of US$87,331 and US$90,299 as of
May 31, 2020 and November
30, 2020, respectively)
|
104,553
|
|
101,385
|
Amounts due to
related parties (including amounts due to related parties of the
consolidated variable
interest entities without recourse to New Oriental of US$1,590 and
US$97 as of May 31, 2020 and
November 30, 2020, respectively)
|
104
|
|
1,590
|
Deferred
revenue (including deferred revenue of the consolidated variable
interest entities without
recourse to New Oriental of US$1,317,645 and US$1,982,534 as
of May 31, 2020 and
November 30, 2020, respectively)
|
1,987,106
|
|
1,324,384
|
Operating
lease liabilities-current (including operating lease
liabilities-current of the consolidated
variable interest entities without recourse to New Oriental of
US$376,177 and US$397,735 as of May
31, 2020 and November 30, 2020, respectively)
|
436,480
|
|
384,239
|
|
|
|
|
Total current
liabilities
|
3,214,039
|
|
2,479,364
|
|
|
|
|
Deferred tax
liabilities, non-current (including deferred tax liabilities,
non-current of the consolidated
variable interest entities without recourse to New Oriental of
US$12,392 and US$17,312 as of May
31, 2020 and November 30, 2020, respectively)
|
19,296
|
|
11,906
|
Long term loan
(including Long term loan of the consolidated variable interest
entities without
recourse to New Oriental of nil and nil as of May 31, 2020 and
November 30, 2020, respectively)
|
-
|
|
117,881
|
Unsecured
senior notes (including unsecured senior notes of the consolidated
variable interest entities
without recourse to the New Oriental of nil and nil as of May 31,
2020 and November 30, 2020,
respectively)
|
299,969
|
|
-
|
Operating
lease liabilities (including operating lease liabilities of the
consolidated variable interest
entities without recourse to New Oriental of US$1,054,149 and
US$1,126,587 as of May 31, 2020 and
November 30, 2020, respectively)
|
1,128,128
|
|
1,077,923
|
|
|
|
|
Total long-term
liabilities
|
1,447,393
|
|
1,207,710
|
|
|
|
|
Total
liabilities
|
4,661,432
|
|
3,687,074
|
|
|
|
|
Equity
|
|
|
|
New Oriental
Education & Technology Group Inc. shareholders'
equity
|
4,703,903
|
|
2,733,295
|
Non-controlling interests
|
112,625
|
|
136,516
|
Total
equity
|
4,816,528
|
|
2,869,811
|
|
|
|
|
Total liabilities
and equity
|
9,477,960
|
|
6,556,885
|
|
|
|
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
|
For the Three
Months Ended November 30
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
887,689
|
|
785,211
|
|
|
|
|
Operating cost and
expenses (note 1)
|
|
|
|
Cost of
revenues
|
453,663
|
|
358,962
|
Selling and
marketing
|
133,588
|
|
107,847
|
General and
administrative
|
332,585
|
|
293,103
|
|
|
|
|
Total operating
cost and expenses
|
919,836
|
|
759,912
|
Operating
(loss)/income
|
(32,147)
|
|
25,299
|
(Loss)/gain from fair
value change of long-term investments
|
(3,400)
|
|
6,713
|
|
|
|
|
Other income,
net
|
65,929
|
|
27,216
|
Provision for income
taxes
|
(6,817)
|
|
(14,077)
|
Gain from equity
method investments
|
4,214
|
|
4,432
|
Net
income
|
27,779
|
|
49,583
|
|
|
|
|
Add: Net loss
attributable to non-controlling interests
|
26,123
|
|
3,854
|
|
|
|
|
Net income
attributable to New Oriental Education & Technology
Group Inc.'s shareholders
|
53,902
|
|
53,437
|
|
|
|
|
Net income per
common share / ADS
|
|
|
|
-
Basic
|
0.33
|
|
0.34
|
-
Diluted
|
0.33
|
|
0.34
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATION OF
NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP
MEASURES
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
For the Three
Months Ended November 30
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
332,585
|
|
293,103
|
Less: Share-based
compensation expenses in general and
administrative expenses
|
12,794
|
|
10,988
|
Non-GAAP general and
administrative expenses
|
319,791
|
|
282,115
|
|
|
|
|
Total operating cost
and expenses
|
919,836
|
|
759,912
|
Less: Share-based
compensation expenses
|
18,480
|
|
11,215
|
|
|
|
|
Non-GAAP operating
cost and expenses
|
901,356
|
|
748,697
|
|
|
|
|
Operating
(loss)/income
|
(32,147)
|
|
25,299
|
Add: Share-based
compensation expenses
|
18,480
|
|
11,215
|
|
|
|
|
Non-GAAP operating
(loss)/income
|
(13,667)
|
|
36,514
|
|
|
|
|
Operating
margin
|
-3.6%
|
|
3.2%
|
Non-GAAP operating
margin
|
-1.5%
|
|
4.7%
|
|
|
|
|
Net income
attributable to New Oriental
|
53,902
|
|
53,437
|
Add: Share-based
compensation expenses
|
11,838
|
|
10,263
|
Less: (Loss)/gain
from fair value change of long-term
investments
|
(3,400)
|
|
6,713
|
Non-GAAP net income
attributable to New Oriental
|
69,140
|
|
56,987
|
|
|
|
|
Net income per ADS
attributable to New Oriental- Basic (note
2)
|
0.33
|
|
0.34
|
Net income per
ADS attributable to New Oriental- Diluted
(note 2)
|
0.33
|
|
0.34
|
|
|
|
|
Non-GAAP net income
per ADS attributable to New Oriental
- Basic (note 2)
|
0.43
|
|
0.36
|
Non-GAAP net income
per ADS attributable to New Oriental
- Diluted (note 2)
|
0.43
|
|
0.36
|
|
|
|
|
Weighted average
shares used in calculating basic net income
per ADS (note 2)
|
161,336,407
|
|
158,429,080
|
Weighted average
shares used in calculating diluted net
income per ADS (note 2)
|
161,931,458
|
|
159,374,555
|
|
|
|
|
Non-GAAP income per
share - basic
|
0.43
|
|
0.36
|
Non-GAAP income per
share - diluted
|
0.43
|
|
0.36
|
Notes:
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the operating
cost and expenses as follows:
|
|
|
|
|
|
For the Three
Months Ended November 30
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
2,353
|
|
21
|
Selling and
marketing
|
3,333
|
|
206
|
General and
administrative
|
12,794
|
|
10,988
|
Total
|
18,480
|
|
11,215
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
For the Three
Months Ended November 30
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
410,678
|
|
291,757
|
|
Net cash used in
investing activities
|
(327,896)
|
|
(226,638)
|
|
Net cash provided
by/(used in) financing activities
|
1,465,618
|
|
(6,291)
|
|
Effect of exchange
rate changes
|
47,245
|
|
15,654
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
1,595,645
|
|
74,482
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
1,052,479
|
|
976,883
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
2,648,124
|
|
1,051,365
|
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
|
For the Six Months
Ended November 30
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
1,874,055
|
|
1,856,988
|
|
|
|
|
Operating costs
and expenses (note 1):
|
|
|
|
Cost of
revenues
|
918,529
|
|
799,191
|
Selling and
marketing
|
250,471
|
|
209,040
|
General and
administrative
|
586,897
|
|
577,262
|
|
|
|
|
Total operating
costs and expenses
|
1,755,897
|
|
1,585,493
|
Operating
income
|
118,158
|
|
271,495
|
Loss from fair value
change of long-term investments
|
(2,154)
|
|
(4,569)
|
|
|
|
|
Other income,
net
|
127,501
|
|
47,169
|
Provision for income
taxes
|
(65,939)
|
|
(64,913)
|
Gain from equity
method investments
|
1,047
|
|
3,629
|
Net
income
|
178,613
|
|
252,811
|
|
|
|
|
Add: Net loss
attributable to non-controlling interests
|
49,941
|
|
9,616
|
|
|
|
|
Net income
attributable to New Oriental Education & Technology
Group Inc.
|
228,554
|
|
262,427
|
|
|
|
|
|
|
|
|
Net income per
share attributable to New Oriental-Basic
|
1.43
|
|
1.66
|
|
|
|
|
Net income per
share attributable to New Oriental-Diluted
|
1.42
|
|
1.65
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Basic (note 2)
|
1.43
|
|
1.66
|
|
|
|
|
Net income per ADS
attributable to New Oriental-Diluted (note 2)
|
1.42
|
|
1.65
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATION OF
NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP
MEASURES
|
(In thousands
except for per share and per ADS amounts)
|
|
|
|
For the Six Months
Ended November 30
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
586,897
|
|
577,262
|
Less: Share-based
compensation expenses in general and
administrative expenses
|
24,547
|
|
21,607
|
Non-GAAP general and
administrative expenses
|
562,350
|
|
555,655
|
|
|
|
|
Total operating costs
and expenses
|
1,755,897
|
|
1,585,493
|
Less: Share-based
compensation expenses
|
34,313
|
|
22,235
|
Non-GAAP operating
costs and expenses
|
1,721,584
|
|
1,563,258
|
|
|
|
|
Operating
income
|
118,158
|
|
271,495
|
Add: Share-based
compensation expenses
|
34,313
|
|
22,235
|
Non-GAAP operating
income
|
152,471
|
|
293,730
|
|
|
|
|
Operating
margin
|
6.3%
|
|
14.6%
|
Non-GAAP operating
margin
|
8.1%
|
|
15.8%
|
|
|
|
|
Net income
attributable to New Oriental
|
228,554
|
|
262,427
|
Add: Share-based
compensation expenses
|
22,958
|
|
20,153
|
Less: Loss from fair
value change of long-term investments
|
(2,154)
|
|
(4,569)
|
Non-GAAP net income
to New Oriental
|
253,666
|
|
287,149
|
|
|
|
|
Net income per ADS
attributable to New Oriental- Basic (note 2)
|
1.43
|
|
1.66
|
Net income per ADS
attributable to New Oriental- Diluted (note 2)
|
1.42
|
|
1.65
|
|
|
|
|
Non-GAAP net income
per ADS attributable to New Oriental -
Basic (note 2)
|
1.58
|
|
1.81
|
Non-GAAP net income
per ADS attributable to New Oriental -
Diluted (note 2)
|
1.58
|
|
1.80
|
|
|
|
|
Weighted average
shares used in calculating basic net income per
ADS (note 2)
|
160,127,052
|
|
158,337,268
|
Weighted average
shares used in calculating diluted net income per
ADS (note 2)
|
160,843,974
|
|
159,520,563
|
|
|
|
|
Non-GAAP income per
share - basic
|
1.58
|
|
1.81
|
Non-GAAP income per
share - diluted
|
1.58
|
|
1.80
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the operating
costs and expenses as follows:
|
|
|
|
|
|
For the Six Months
Ended November 30
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
3,836
|
|
57
|
Selling and
marketing
|
5,930
|
|
571
|
General and
administrative
|
24,547
|
|
21,607
|
Total
|
34,313
|
|
22,235
|
|
|
|
|
|
Note 2: Each ADS
represents one common share.
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
For the Six Months
Ended November 30
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
802,276
|
|
656,326
|
|
Net cash used in
investing activities
|
(796,800)
|
|
(1,001,867)
|
|
Net cash provided
by/(used in) financing activities
|
1,641,471
|
|
(4,722)
|
|
Effect of exchange
rate changes
|
81,753
|
|
(16,599)
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
1,728,700
|
|
(366,862)
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
919,424
|
|
1,418,227
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
2,648,124
|
|
1,051,365
|
|
View original
content:http://www.prnewswire.com/news-releases/new-oriental-announces-fy2021-second-quarter-and-interim-financial-results-ended-november-30-2020-301213109.html
SOURCE New Oriental Education and Technology Group Inc.