BEIJING, July 27,
2022 /PRNewswire/ -- New Oriental Education
& Technology Group Inc. (the "Company" or "New Oriental")
(NYSE: EDU/ 9901.SEHK), a provider of private educational services
in China, today announced its
unaudited financial results for the fourth fiscal quarter and
fiscal year ended May 31, 2022.
Financial Highlights for the Fourth Fiscal Quarter Ended
May 31, 2022
- Total net revenues decreased by 56.8% year over year to
US$524.0 million for the fourth
fiscal quarter of 2022.
- Operating loss was US$105.6
million for the fourth fiscal quarter of 2022.
- Net loss attributable to New Oriental was US$189.3 million for the fourth fiscal quarter of
2022.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
4Q
FY2022
|
4Q
FY2021
|
% of
change
|
Net revenues
|
524,023
|
1,211,986
|
-56.8 %
|
Operating
loss
|
(105,649)
|
(102,362)
|
3.2 %
|
Non-GAAP operating loss
(2)(3)
|
(76,865)
|
(82,217)
|
-6.5 %
|
Net loss attributable
to New Oriental
|
(189,302)
|
(45,466)
|
316.4 %
|
Non-GAAP net loss
attributable to New Oriental (2)(3)
|
(160,339)
|
(27,872)
|
475.3 %
|
Net loss per ADS
attributable to New Oriental - basic
|
(1.12)
|
(0.27)
|
314.7 %
|
Net loss per ADS
attributable to New Oriental - diluted
|
(1.12)
|
(0.27)
|
314.7 %
|
Non-GAAP net loss per
ADS attributable to New Oriental -
basic(3)(4)
|
(0.94)
|
(0.16)
|
472.9 %
|
Non-GAAP net loss per
ADS attributable to New Oriental -
diluted(3)(4)
|
(0.94)
|
(0.16)
|
472.9 %
|
|
|
|
|
(in thousands US$,
except per ADS(1) data)
|
FY2022
|
FY2021
|
% of
change
|
Net revenues
|
3,105,246
|
4,276,539
|
-27.4 %
|
Operating (loss) /
income
|
(982,513)
|
117,266
|
-937.8 %
|
Non-GAAP operating
(loss) / income (2)(3)
|
(849,545)
|
186,146
|
-556.4 %
|
Net (loss) / income
attributable to New Oriental
|
(1,187,721)
|
334,414
|
-455.2 %
|
Non-GAAP net (loss) /
income attributable to New Oriental (2)(3)
|
(1,046,238)
|
389,030
|
-368.9 %
|
Net (loss) / income per
ADS attributable to New Oriental - basic
|
(7.00)
|
2.03
|
-444.5 %
|
Net (loss) / income per
ADS attributable to New Oriental - diluted
|
(7.00)
|
2.02
|
-445.9 %
|
Non-GAAP net (loss) /
income per ADS attributable to New
Oriental - basic(3)(4)
|
(6.17)
|
2.36
|
-360.9 %
|
Non-GAAP net (loss) /
income per ADS attributable to New
Oriental - diluted(3)(4)
|
(6.17)
|
2.35
|
-361.9 %
|
|
|
|
|
|
(1) Each ADS
represents ten common shares. The Hong Kong-listed shares are fully
fungible with the ADSs listed on NYSE. The weighted average number
of ADS and earnings per ADS have been retrospectively adjusted to
reflect the ADS ratio change from one ADS representing one common
share to one ADS representing ten common shares, which became
effective on April 8, 2022.
|
(2) GAAP
represents Generally Accepted Accounting Principles in the United
States of America.
|
(3) New Oriental
provides net (loss) / income attributable to New Oriental,
operating (loss) / income and net (loss) / income per ADS
attributable to New Oriental on a non-GAAP basis that excludes
share-based compensation expenses and gain / (loss) from fair value
change of 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 (loss) / income per ADS attributable to New Oriental is
computed using Non-GAAP net (loss) / 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 Fourth Fiscal Quarter Ended
May 31, 2022
- The total number of schools and learning centers was 744 as of
May 31, 2022, a decrease of 103 and
925 compared to 847 as of February 28,
2022 and 1,669 as of May 31,
2021, respectively. The total number of schools was 107 as
of May 31, 2022.
Michael Yu, New Oriental's
Executive Chairman, commented, "Fiscal year 2022 has been a year
full of challenges and opportunities. We restructured our core
businesses and operations to comply with the government policies in
China and stepped onto a new
stage. Our remaining key businesses are seeing a stable trend that
lays a solid foundation for our future development. In this fiscal
year, the overseas test preparation and overseas study consulting
businesses increased by 6% and 16% year over year, respectively.
Our domestic test preparation business targeting adults and
university students witnessed a record rapid growth of
approximately 30% year over year. At the same time, various new
businesses that we embarked on earlier this year achieved promising
results.
The non-academic tutoring business was rolled out in over 50
cities, same as the intelligent learning system and devices that
were adopted and tested in around 60 cities. Both have achieved
positive customer feedback and improved customer retention. Other
businesses, including study tour and research camp, educational
materials and digitalized smart study solutions, as well as exam
preparation courses designed for students with junior college
diplomas to obtain bachelor's degrees, are making remarkable
progress. We are confident that by leveraging our brand recognition
and educational resources accumulated over our operating history,
these new businesses will start to generate notable revenue from
the next fiscal year."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "By the end of this fiscal year,
the total number of schools and learning centers was reduced to
744. As we focus more on business opportunities in the major
markets of higher-tier cities, we are committed to leveraging our
well-developed educational infrastructure, human resources, and
state-of-the-art technology across our remaining key businesses. We
are also actively looking into new initiatives to provide
high-quality and diversified educational services for our customers
of all ages. Our online-merge-offline teaching system helped us to
maintain a high teaching quality to our customers amid the pandemic
– especially in major cities such as Shanghai and Beijing. Koolearn.com, our online education
platform, continues to expand its online educational offerings to
adults and university students, and actively seeks business
opportunities in new areas. In this fiscal year, Koolearn
established an e-commerce platform under the brand name
DONG FANG ZHEN XUAN(东方甄选) for the
sale of agricultural and other products. Koolearn also began to
pilot livestreaming events on some famous short-video social
platforms such as Douyin. DONG FANG ZHEN
XUAN has made notable progress and received wide
recognitions from tens of millions of subscribers and members
alike."
Stephen Zhihui Yang, New
Oriental's Executive President and Chief Financial Officer,
commented, "We maintained a strong cash position throughout the
whole restructuring process. By the end of this fiscal year, our
cash and cash equivalents, term deposits and short-term investments
totaled approximately US$4.2 billion.
The additional costs and expenses due to the termination of lease
agreements in relation to the closure of our learning centers and
employee layoffs were largely absorbed in fiscal year 2022. The
Company's management team will continue to make great efforts to
resume overall profitability of the Company as early as possible
and proactively seek profitable growth. Our continued commitment to
high quality services and operational efficiency will deliver more
value to our customers, society and shareholders over the long
term."
Adoption of Share Repurchase Program
On July 26, 2022, New Oriental's
board of directors authorized the repurchase of up to US$400 million of the Company's common shares
during the period from July 28, 2022
through May 31, 2023.
This share repurchase program authorizes the Company to purchase
its ADSs or common shares from time to time on the open market at
prevailing market prices, in privately negotiated transactions, in
block trades or through other legally permissible ways in
accordance with applicable rules and regulations. The timing and
extent of any purchases will depend upon market conditions, the
trading price of ADSs and its common shares, as well as other
factors.
New Oriental's board of directors will review the share
repurchase program periodically and may authorize adjustment to its
terms and size accordingly. New Oriental plans to fund any share
repurchases made under this program from the Company's available
cash balance.
Financial Results for the Fourth Fiscal Quarter Ended
May 31, 2022
Net Revenues
For the fourth fiscal quarter of 2022, New Oriental reported net
revenues of US$524.0 million,
representing a 56.8% decrease year over year. The decline was
mainly due to the cessation of K-9 academic after-school tutoring
services in compliance with the government policies in China.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$629.7 million, representing a 52.1%
decrease year over year. Non-GAAP operating costs and expenses for
the quarter, which exclude share-based compensation expenses, were
US$600.9 million, representing a
53.6% decrease year over year. The decrease was primarily due
to the reduction of facilities and number of staff as a result of
the restructuring in fiscal year 2022.
- Cost of revenues decreased by 57.2% year over year to
US$247.8 million.
- Selling and marketing expenses decreased by 50.7% year
over year to US$95.8 million.
- General and administrative expenses for the quarter
decreased by 43.9% year over year to US$286.1 million. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, were US$257.2 million,
representing a 47.4% decrease year over year.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, increased by 42.9% to
US$28.8 million in the fourth fiscal
quarter of 2022. The increase is due to the grants of restricted
share units of the Company to employees and directors in
May 2021 with graded vesting over
three years.
Operating Loss and Operating Margin
Operating loss was US$105.6
million, compared to the loss of US$102.4 million in
the same period of the prior fiscal year. Non-GAAP loss from
operations for the quarter was US$76.9
million, compared to the loss of US$82.2 million in the
same period of the prior fiscal year.
Operating margin for the quarter was negative 20.2%, compared to
negative 8.4% in the same period of the prior fiscal year. Non-GAAP
operating margin, which excludes share-based compensation expenses,
for the quarter was negative 14.7%, compared to negative 6.8% in
the same period of the prior fiscal year.
Net Loss and Net Loss per ADS
Net loss attributable to New Oriental for the quarter was
US$189.3 million, compared to the
loss of US$45.5 million in the same period of the prior fiscal
year. Basic and diluted net loss per ADS attributable to New
Oriental were US$1.12 and
US$1.12, respectively.
Non-GAAP Net Loss and Non-GAAP Net Loss per ADS
Non-GAAP net loss attributable to New Oriental for the quarter
was US$160.3 million, compared to the
loss of US$27.9 million in the same period of the prior fiscal
year. Non-GAAP basic and diluted net loss per ADS attributable to
New Oriental were US$0.94 and
US$0.94, respectively.
Cash Flow
Net operating cash flow for the fourth fiscal quarter of 2022
was approximately US$29.3 million and
capital expenditures for the quarter were US$22.3 million.
Balance Sheet
As of May 31, 2022, New Oriental
had cash and cash equivalents of US$1,148.6
million. In addition, the Company had US$1,140.1 million in term deposits and
US$1,902.3 million in short-term
investment.
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
fourth quarter of fiscal year 2022 was US$933.1 million, a decrease of 51.6% as compared
to US$1,926.4 million at the end of
the fourth quarter of fiscal year 2021. The decrease is primarily
due to the cessation of K-9 academic after-school tutoring services
in compliance with the government policies in China.
Financial Results for the Fiscal Year Ended May 31, 2022
For the fiscal year 2022 ended May 31,
2022, New Oriental reported net revenues of US$3,105.2 million, representing a 27.4% decrease
year over year.
Loss from operations for the fiscal year 2022 was US$982.5 million, compared to an income
of US$117.3 million in the same period of the prior fiscal
year. Non-GAAP loss from operations for the fiscal year 2022 was
US$849.5 million, compared to an
income of US$186.1 million in the same period of the prior
fiscal year.
Operating margin for the fiscal year 2022 was negative
31.6%, compared to 2.7% for the same period of the prior fiscal
year. Non-GAAP operating margin, which excludes share-based
compensation expenses for the fiscal year 2022, was negative
27.4%, compared to 4.4% for the same period of the prior fiscal
year.
Net loss attributable to New Oriental for the fiscal year 2022
was US$1,187.7 million, compared to
an income of US$334.4 million in the same period of the prior
fiscal year. Basic and diluted net loss per ADS attributable to New
Oriental for the fiscal year 2022 amounted to US$7.00 and US$7.00, respectively.
Non-GAAP net loss attributable to New Oriental for the fiscal
year 2022 was US$1,046.2 million,
compared to an income of US$389.0 million in the same period
of the prior fiscal year. Non-GAAP basic and diluted net loss per
ADS attributable to New Oriental for the fiscal year 2022 amounted
to US$6.17 and US$6.17, respectively.
Outlook for the First Quarter of the Fiscal Year 2023
New Oriental expects total net revenues in the first quarter of
the fiscal year 2023 (June 1, 2022 to
August 31, 2022) to be in the range
of US$641.3 million to US$680.6 million, representing year-over-year
decline in the range of 51% to 48%.
This forecast reflects New Oriental's current and preliminary
view, which is subject to change.
Conference Call Information
New Oriental's management will host an earnings conference call
at 8 AM on July 27, 2022, U.S. Eastern Time (8 PM on July 27,
2022, Beijing/Hong Kong
Time).
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://s1.c-conf.com/diamondpass/10023381-cbs76d.html. It will
automatically direct you to the registration page of "New Oriental
Fourth Fiscal Quarter 2022 Earnings Conference Call" where you may
fill in your details for RSVP.
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.
A replay of the conference call may be accessed by phone at the
following number until August 3,
2022:
Mainland
China:
|
400 1209 216
|
Hong
Kong:
|
800 930 639
|
US/Canada:
|
1855 883
1031
|
|
|
Passcode:
|
10023381
|
Additionally, a live and archived webcast of the conference call
will be available at http://investor.neworiental.org.
About New Oriental
New Oriental is a 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 mainly consist of
test preparation, language training for adults, 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 ten
common shares. 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 first quarter of fiscal year 2023, 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
increase 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 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 charge 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 May
31
|
|
As of May
31
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Audited)
|
|
|
USD
|
|
USD
|
|
ASSETS:
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
1,148,637
|
|
1,612,211
|
|
Term
deposits
|
1,140,066
|
|
1,214,025
|
|
Short-term
investments
|
1,902,254
|
|
3,434,726
|
|
Accounts receivable,
net
|
16,430
|
|
8,667
|
|
Inventory,
net
|
27,925
|
|
31,175
|
|
Prepaid expenses and
other current assets, net
|
215,402
|
|
269,233
|
|
Amounts due from
related parties, current
|
23,245
|
|
4,118
|
|
Total current
assets
|
4,473,959
|
|
6,574,155
|
|
|
|
|
|
|
Restricted cash,
non-current
|
45,890
|
|
19,916
|
|
Property and
equipment, net
|
402,690
|
|
865,030
|
|
Land use rights,
net
|
3,627
|
|
13,989
|
|
Amounts due from
related parties, non-current
|
3,365
|
|
4,157
|
|
Long-term
deposits
|
33,409
|
|
74,796
|
|
Intangible assets,
net
|
2,800
|
|
4,836
|
|
Goodwill,
net
|
70,803
|
|
73,254
|
|
Long-term investments,
net
|
437,919
|
|
537,749
|
|
Deferred tax assets,
non-current, net
|
20,038
|
|
103,587
|
|
Right-of-use
assets
|
531,102
|
|
1,857,533
|
|
Other non-current
assets
|
9,064
|
|
22,051
|
|
Total
assets
|
6,034,666
|
|
10,151,053
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
22,289
|
|
38,441
|
|
Accrued expenses and
other current liabilities
|
510,264
|
|
908,231
|
|
Income taxes
payable
|
75,650
|
|
84,321
|
|
Amounts due to related
parties
|
226
|
|
33
|
|
Deferred
revenue
|
933,062
|
|
1,926,386
|
|
Operating lease
liability-current
|
168,623
|
|
514,033
|
|
Total current
liabilities
|
1,710,114
|
|
3,471,445
|
|
|
|
|
|
|
Deferred tax
liabilities, non-current
|
19,240
|
|
13,172
|
|
Unsecured senior
notes
|
65,394
|
|
297,631
|
|
Operating lease
liabilities
|
446,394
|
|
1,350,629
|
|
Total long-term
liabilities
|
531,028
|
|
1,661,432
|
|
|
|
|
|
|
Total
liabilities
|
2,241,142
|
|
5,132,877
|
|
|
|
|
|
|
Equity
|
|
|
|
|
New Oriental
Education & Technology Group Inc. shareholders'
equity
|
3,705,506
|
|
4,913,275
|
|
Non-controlling
interests
|
88,018
|
|
104,901
|
|
Total
equity
|
3,793,524
|
|
5,018,176
|
|
|
|
|
|
|
Total liabilities
and equity
|
6,034,666
|
|
10,151,053
|
|
|
|
|
|
|
|
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 May 31
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
524,023
|
|
1,211,986
|
|
|
|
|
Operating cost and
expenses (note 1)
|
|
|
|
Cost of
revenues
|
247,827
|
|
578,847
|
Selling and
marketing
|
95,786
|
|
194,223
|
General and
administrative
|
286,059
|
|
509,484
|
Impairment loss on
intangible assets and goodwill
|
-
|
|
31,794
|
Total operating cost
and expenses
|
629,672
|
|
1,314,348
|
Operating
loss
|
(105,649)
|
|
(102,362)
|
(Loss)/Gain from fair
value change of long-term investments
|
(1,682)
|
|
773
|
|
|
|
|
Other (loss)/ income,
net
|
(68,396)
|
|
5,957
|
(Provision)/Benefits
for income taxes
|
(5,618)
|
|
29,322
|
Loss from equity method
investments
|
(5,322)
|
|
(8,924)
|
Net
loss
|
(186,667)
|
|
(75,234)
|
|
|
|
|
Add: Net (gain)/loss
attributable to non-controlling interests
|
(2,635)
|
|
29,768
|
Net loss
attributable to New Oriental Education & Technology
Group Inc.'s shareholders
|
(189,302)
|
|
(45,466)
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to New Oriental-Basic (note 2)
|
(0.11)
|
|
(0.03)
|
|
|
|
|
Net loss per share
attributable to New Oriental-Diluted (note 2)
|
(0.11)
|
|
(0.03)
|
|
|
|
|
Net loss per ADS
attributable to New Oriental-Basic (note 2)
|
(1.12)
|
|
(0.27)
|
|
|
|
|
Net loss per ADS
attributable to New Oriental-Diluted (note 2)
|
(1.12)
|
|
(0.27)
|
|
|
|
|
|
|
|
|
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 May 31
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
286,059
|
|
509,484
|
Less: Share-based
compensation expenses in
general and administrative expenses
|
28,838
|
|
20,605
|
Non-GAAP general and
administrative expenses
|
257,221
|
|
488,879
|
|
|
|
|
Total operating cost
and expenses
|
629,672
|
|
1,314,348
|
Less: Share-based
compensation expenses
|
28,784
|
|
20,145
|
Non-GAAP operating cost
and expenses
|
600,888
|
|
1,294,203
|
|
|
|
|
Operating
loss
|
(105,649)
|
|
(102,362)
|
Add: Share-based
compensation expenses
|
28,784
|
|
20,145
|
Non-GAAP operating
loss
|
(76,865)
|
|
(82,217)
|
|
|
|
|
Operating
margin
|
-20.2 %
|
|
-8.4 %
|
Non-GAAP operating
margin
|
-14.7 %
|
|
-6.8 %
|
|
|
|
|
Net loss attributable
to New Oriental
|
(189,302)
|
|
(45,466)
|
Add: Share-based
compensation expenses
|
27,281
|
|
18,367
|
Less: (loss)/gain from
fair value change of long-
term investments
|
(1,682)
|
|
773
|
Non-GAAP net loss
attributable to New Oriental
|
(160,339)
|
|
(27,872)
|
|
|
|
|
Net loss per ADS
attributable to New Oriental-
Basic (note 2)
|
(1.12)
|
|
(0.27)
|
Net loss per ADS
attributable to New Oriental-
Diluted (note 2)
|
(1.12)
|
|
(0.27)
|
|
|
|
|
Non-GAAP net loss per
ADS attributable to New
Oriental - Basic (note 2)
|
(0.94)
|
|
(0.16)
|
Non-GAAP net loss per
ADS attributable to New
Oriental - Diluted (note 2)
|
(0.94)
|
|
(0.16)
|
|
|
|
|
Weighted average shares
used in calculating basic
net loss per ADS (note 2)
|
1,696,966,183
|
|
1,690,082,150
|
Weighted average shares
used in calculating
diluted net loss per ADS (note 2)
|
1,696,966,183
|
|
1,690,082,150
|
|
|
|
|
Non-GAAP net loss per
share - basic
|
(0.09)
|
|
(0.02)
|
Non-GAAP net loss per
share - diluted
|
(0.09)
|
|
(0.02)
|
Notes:
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the operating
cost and expenses as
follows:
|
|
|
|
|
|
For the Three Months
Ended May 31
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
26
|
|
469
|
Selling and
marketing
|
(80)
|
|
(929)
|
General and
administrative
|
28,838
|
|
20,605
|
Total
|
28,784
|
|
20,145
|
|
|
|
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
For the Three Months
Ended May 31
|
|
|
2022
|
|
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
29,347
|
|
318,427
|
|
Net cash used in
investing activities
|
(238,428)
|
|
(277,371)
|
|
Net cash (used in)/
provided by financing activities
|
(50,872)
|
|
3,167
|
|
Effect of exchange rate
changes
|
(56,762)
|
|
1,712
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
(316,715)
|
|
45,935
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning
of period
|
1,511,242
|
|
1,586,192
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of
period
|
1,194,527
|
|
1,632,127
|
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands except
for per share and per ADS amounts)
|
|
|
|
|
For the Year Ended
May 31
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
3,105,246
|
|
4,276,539
|
|
|
|
|
Operating costs and
expenses (note 1):
|
|
|
|
Cost of
revenues
|
1,754,291
|
|
2,036,875
|
Selling and
marketing
|
466,895
|
|
600,778
|
General and
administrative
|
1,866,573
|
|
1,489,826
|
Impairment loss on
intangible assets and goodwill
|
-
|
|
31,794
|
Total operating
costs and expenses
|
4,087,759
|
|
4,159,273
|
Operating
(loss)/income
|
(982,513)
|
|
117,266
|
Loss from fair value
change of investments
|
(14,933)
|
|
(3,824)
|
|
|
|
|
Other (loss)/income ,
net
|
(35,052)
|
|
201,535
|
Provision for income
taxes
|
(136,312)
|
|
(83,588)
|
Loss from equity method
investments
|
(51,466)
|
|
(1,368)
|
Net
(loss)/income
|
(1,220,276)
|
|
230,021
|
|
|
|
|
Add: Net loss
attributable to non-controlling interests
|
32,555
|
|
104,393
|
Net (loss)/income
attributable to New Oriental
Education & Technology Group Inc.
|
(1,187,721)
|
|
334,414
|
|
|
|
|
|
|
|
|
Net (loss)/income
per share attributable to New
Oriental-Basic (note 2)
|
(0.70)
|
|
0.20
|
|
|
|
|
Net (loss)/income
per share attributable to New
Oriental-Diluted (note 2)
|
(0.70)
|
|
0.20
|
|
|
|
|
Net (loss)/income
per ADS attributable to New Oriental-
Basic (note 2)
|
(7.00)
|
|
2.03
|
|
|
|
|
Net (loss)/income
per ADS attributable to New Oriental-
Diluted (note 2)
|
(7.00)
|
|
2.02
|
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 Year Ended
May 31
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
1,866,573
|
|
1,489,826
|
Less: Share-based
compensation expenses in general
and administrative expenses
|
135,536
|
|
55,260
|
Non-GAAP general and
administrative expenses
|
1,731,037
|
|
1,434,566
|
|
|
|
|
Total operating costs
and expenses
|
4,087,759
|
|
4,159,273
|
Less: Share-based
compensation expenses
|
132,968
|
|
68,880
|
Non-GAAP operating
costs and expenses
|
3,954,791
|
|
4,090,393
|
|
|
|
|
Operating
(loss)/income
|
(982,513)
|
|
117,266
|
Add: Share-based
compensation expenses
|
132,968
|
|
68,880
|
Non-GAAP operating
(loss)/income
|
(849,545)
|
|
186,146
|
|
|
|
|
Operating
margin
|
-31.6 %
|
|
2.7 %
|
Non-GAAP operating
margin
|
-27.4 %
|
|
4.4 %
|
|
|
|
|
Net (loss)/income
attributable to New Oriental
|
(1,187,721)
|
|
334,414
|
Add: Share-based
compensation expenses
|
126,550
|
|
50,792
|
Less: Loss from fair
value change of long-term
investments
|
(14,933)
|
|
(3,824)
|
Non-GAAP net
(loss)/income attributable to New
Oriental
|
(1,046,238)
|
|
389,030
|
|
|
|
|
Net (loss)/income per
ADS attributable to New
Oriental- Basic (note 2)
|
(7.00)
|
|
2.03
|
Net (loss)/income per
ADS attributable to New
Oriental- Diluted (note 2)
|
(7.00)
|
|
2.02
|
|
|
|
|
Non-GAAP net
(loss)/income per ADS attributable to
New Oriental - Basic (note 2)
|
(6.17)
|
|
2.36
|
Non-GAAP net
(loss)/income per ADS attributable to
New Oriental - Diluted (note 2)
|
(6.17)
|
|
2.35
|
|
|
|
|
Weighted average shares
used in calculating basic net
(loss)/income per ADS (note 2)
|
1,696,419,232
|
|
1,645,463,440
|
Weighted average shares
used in calculating diluted
net (loss)/income per ADS (note 2)
|
1,696,419,232
|
|
1,651,982,384
|
|
|
|
|
Non-GAAP net
(loss)/income per share - basic
|
(0.62)
|
|
0.24
|
Non-GAAP net
(loss)/income per share - diluted
|
(0.62)
|
|
0.24
|
Notes:
|
|
|
|
|
|
|
|
Note 1: Share-based
compensation expenses (in thousands) are included in the operating
costs and expenses
as follows:
|
|
|
|
|
|
For the Year Ended
May 31
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
(131)
|
|
6,698
|
Selling and
marketing
|
(2,437)
|
|
6,922
|
General and
administrative
|
135,536
|
|
55,260
|
Total
|
132,968
|
|
68,880
|
|
|
|
|
Note 2: Each ADS
represents ten common shares. For the three months and the year
ended May 51, 2021, the
weighted average number of ADS and earnings per ADS have been
retrospectively adjusted to reflect the
ADS ratio change from one ADS representing one common share to one
ADS representing ten common
shares, which became effective on April 8, 2022.
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
For the Year Ended
May 31
|
|
|
2022
|
|
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
USD
|
|
USD
|
|
|
|
|
|
|
Net cash (used in)
/provided by operating activities
|
(1,280,453)
|
|
1,130,085
|
|
Net cash provided by/
(used in) investing activities
|
1,168,532
|
|
(2,177,639)
|
|
Net cash (used in)
/provided by financing activities
|
(230,858)
|
|
1,654,084
|
|
Effect of exchange rate
changes
|
(94,821)
|
|
106,173
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
(437,600)
|
|
712,703
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
1,632,127
|
|
919,424
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
1,194,527
|
|
1,632,127
|
|
View original
content:https://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-fourth-fiscal-quarter-and-the-fiscal-year-ended-may-31-2022-and-adoption-of-up-to-us400-million-share-repurchase-program-301594215.html
SOURCE New Oriental Education and Technology Group Inc.