BEIJING, July 26, 2023 /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,
2023.
Financial Highlights for the Fourth Fiscal Quarter Ended
May 31, 2023
- Total net revenues increased by 64.2% year over year to
US$860.6 million for the fourth
fiscal quarter of 2023.
- Operating income increased by 145.5% year over year to
US$48.1 million for the fourth fiscal
quarter of 2023.
- Net income attributable to New Oriental increased by 115.3%
year over year to US$29.0 million for
the fourth fiscal quarter of 2023.
Key Financial Results
(in thousands US$,
except per ADS(1) data)
|
4Q
FY2023
|
4Q
FY2022
|
% of
change
|
|
|
|
|
Net revenues
|
860,571
|
524,023
|
64.2 %
|
Operating income/
(loss)
|
48,054
|
(105,649)
|
145.5 %
|
Non-GAAP operating
income/ (loss) (2)(3)
|
78,592
|
(76,865)
|
202.2 %
|
Net income/ (loss)
attributable to New Oriental
|
28,959
|
(189,302)
|
115.3 %
|
Non-GAAP net income/
(loss) attributable to New Oriental (2)(3)
|
62,091
|
(160,339)
|
138.7 %
|
Net income/ (loss) per
ADS attributable to New Oriental - basic
|
0.18
|
(1.12)
|
115.7 %
|
Net income/ (loss) per
ADS attributable to New Oriental - diluted
|
0.17
|
(1.12)
|
115.3 %
|
Non-GAAP net income/
(loss) per ADS attributable to New Oriental -
basic(2)(3)(4)
|
0.38
|
(0.94)
|
139.8 %
|
Non-GAAP net income/
(loss) per ADS attributable to New Oriental -
diluted(2)(3)(4)
|
0.37
|
(0.94)
|
138.9 %
|
|
|
|
|
(in thousands US$,
except per ADS(1) data)
|
FY2023
|
FY2022
|
% of
change
|
|
|
|
|
Net revenues
|
2,997,760
|
3,105,246
|
-3.5 %
|
Operating income/
(loss)
|
190,046
|
(982,513)
|
119.3 %
|
Non-GAAP operating
income/ (loss) (2)(3)
|
279,834
|
(849,545)
|
132.9 %
|
Net income/ (loss)
attributable to New Oriental
|
177,341
|
(1,187,721)
|
114.9 %
|
Non-GAAP net income/
(loss) attributable to New Oriental (2)(3)
|
258,909
|
(1,046,238)
|
124.7 %
|
Net income/ (loss) per
ADS attributable to New Oriental - basic
|
1.06
|
(7.00)
|
115.1 %
|
Net income/ (loss) per
ADS attributable to New Oriental - diluted
|
1.03
|
(7.00)
|
114.7 %
|
Non-GAAP net income/
(loss) per ADS attributable to New Oriental -
basic(2)(3)(4)
|
1.54
|
(6.17)
|
125.0 %
|
Non-GAAP net income/
(loss) per ADS attributable to New Oriental -
diluted(2)(3)(4)
|
1.51
|
(6.17)
|
124.5 %
|
|
|
|
|
|
|
(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 income / (loss) attributable to New Oriental,
operating income / (loss) and net income / (loss) per
ADS attributable to New Oriental on a Non-GAAP
basis that excludes share-based compensation expenses and 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 income / (loss) per ADS attributable to New Oriental is
computed using Non-GAAP net income / (loss)
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, 2023
- The total number of schools and learning centers was 748 as of
May 31, 2023, an increase of 36 and 4
compared to 712 as of February 28,
2023 and 744 as of May 31,
2022, respectively. The total number of schools was 85 as of
May 31, 2023.
Michael Yu, New Oriental's
Executive Chairman, commented, "We are delighted to conclude the
fiscal year 2023 with record growth in revenue and profitability,
respectively. In the fourth quarter, revenue was up by 64.2%,
benefitting from the strong post-COVID recovery of demand. Our
overseas test preparation and overseas study consulting businesses
have also recorded encouraging results with approximately 52% and
6% growth year over year, respectively. In addition, the domestic
test preparation business targeting adults and university students
recorded a growth of approximately 34% year over year. Apart from
our longstanding traditional business lines, our educational new
business initiatives have made a promising start, paving the way
for continued success and yielding better-than-expected margins. As
of May 31, 2023, our non-academic
tutoring courses were offered in around 60 cities, attracting
629,000 student enrollments in this fiscal quarter; at the same
time, around 60 cities have adopted our intelligent learning system
and devices, with 99,000 paid active users in this fiscal quarter.
With such strong market demands and satisfactory customer retention
rate recorded, we have great confidence in the bright future of
these new business initiatives, leveraging our distinctive edge and
expertise to capture new market opportunities."
Chenggang Zhou, New Oriental's
Chief Executive Officer, added, "As of the end of this fiscal year,
the total number of schools and learning centers increased to 748.
Despite all of the different challenges we have encountered in the
recent years, our ongoing investment in R&D to maintain and
uphold our technology capabilities has enabled us to continue to
provide high-quality services to our customers, and successfully
capture new business opportunities during this transition period.
By proactively redesigning our long-term strategic planning and
implementing a series of initiatives to strengthen the long-term
sustainability, East Buy (东方甄选) achieved multiple
breakthroughs in both business operations and financial
performance. During the year, East Buy has made significant strides
in increasing the variety and scale of its product offerings. By
applying scientific and advanced technologies to strictly control
the entire process, from product development to sales and
after-sales services, East Buy has been able to provide consumers
with high-quality and cost-effective products. In addition, their
featured onsite livestreaming events in different provinces in
China successfully boosted social
awareness and affection on Chinese culture, and at the same time
provided customers with better experience and cultural
knowledge."
Stephen Zhihui Yang, New
Oriental's Executive President and Chief Financial Officer,
commented, "We are pleased to achieve turnaround in profitability
since the beginning of this fiscal year and maintained a healthy
margin trend in the whole fiscal year. Our GAAP operating margin
and Non-GAAP operating margin for the quarter were 5.6% and 9.1%,
respectively. GAAP operating margin and Non-GAAP operating margin
for the whole fiscal year were 6.3% and 9.3%, respectively. A
positive operating cash flow of US$421.6
million was also generated in the quarter, and by the end of
this fiscal year, our cash and cash equivalents, term deposits and
short-term investments totaled approximately US$4.5 billion. We are determined in pursuing
profitable growth for all business lines and maintaining a healthy
growth with improving operational efficiency and service quality.
We have great confidence in creating sustainable value for our
customers and shareholders in the long term."
Share Repurchase
On July 26, 2022, the Company's
board of directors authorized a share repurchase program, under
which the Company may repurchase up to US$400 million of the Company's ADSs or
common shares during the period from July
28, 2022 through May 31, 2023.
The Company's board of directors further authorized the Company to
extend its share repurchase program launched in July 2022 by twelve months through May 31, 2024. As of July
25, 2023, the Company repurchased an aggregate of
approximately 5.9 million ADSs for approximately US$191.7 million from the open market under the
share repurchase program.
Financial Results for the Fourth Fiscal Quarter Ended
May 31, 2023
Net Revenues
For the fourth fiscal quarter of 2023, New Oriental reported net
revenues of US$860.6 million,
representing a 64.2% increase year over year. The growth was mainly
driven by the increase in revenues from our educational new
business initiatives and East Buy private label products and
livestreaming e-commerce business.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$812.5 million, representing a 29.0%
increase year over year. Non-GAAP operating costs and expenses for
the quarter, which exclude share-based compensation expenses, were
US$782.0 million, representing a
30.1% increase year over year. The increase was primarily due to
the cost and expenses related to the substantial growth in East Buy
private label products and livestreaming e-commerce business.
- Cost of revenues increased by 58.0% year over year to
US$391.6 million.
- Selling and marketing expenses increased by 54.3% year
over year to US$147.8 million.
- General and administrative expenses for the quarter
decreased by 4.5% year over year to US$273.1
million. Non-GAAP general and administrative expenses, which
exclude share-based compensation expenses, were US$249.5 million, representing a 3.0% decrease
year over year.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, increased by 6.1% to
US$30.5 million in the fourth fiscal
quarter of 2023.
Operating Income and Operating Margin
Operating income was US$48.1
million, compared to the loss of US$105.6 million in
the same period of the prior fiscal year. Non-GAAP income
from operations for the quarter was US$78.6
million, compared to the loss of US$76.9 million in the
same period of the prior fiscal year.
Operating margin for the quarter was 5.6%, compared to negative
20.2% in the same period of the prior fiscal year. Non-GAAP
operating margin, which excludes share-based compensation expenses,
for the quarter was 9.1%, compared to negative 14.7% in the same
period of the prior fiscal year.
Net Income and Net Income per ADS
Net income attributable to New Oriental for the quarter was
US$29.0 million, compared to the loss
of US$189.3 million in the same period of the prior fiscal
year. Basic and diluted net income per ADS attributable to New
Oriental were US$0.18 and
US$0.17, respectively.
Non-GAAP Net Income and Non-GAAP Net Income per ADS
Non-GAAP net income attributable to New Oriental for the quarter
was US$62.1 million, compared to the
loss of US$160.3 million in the same period of the prior
fiscal year. Non-GAAP basic and diluted net income per ADS
attributable to New Oriental were US$0.38 and US$0.37, respectively.
Cash Flow
Net operating cash inflow for the fourth fiscal quarter of 2023
was approximately US$421.6 million
and capital expenditures for the quarter were US$68.4 million.
Balance Sheet
As of May 31, 2023, New Oriental
had cash and cash equivalents of US$1,663.0
million. In addition, the Company had US$1,318.5 million in term deposits and
US$1,477.8 million in short-term
investment.
New Oriental's deferred revenue represents cash collected
upfront from customers and related revenue will be recognized as
the services or goods are delivered, at the end of the fourth
quarter of fiscal year 2023 was US$1,337.6
million, an increase of 43.4% as compared to US$933.1 million at the end of the fourth quarter
of fiscal year 2022.
Financial Results for the Fiscal Year Ended May 31, 2023
For the fiscal year 2023 ended May 31,
2023, New Oriental reported net revenues of US$2,997.8 million, representing a 3.5% decrease
year over year.
Operating income from operations for the fiscal year 2023 was
US$190.0 million, compared to a loss
of US$982.5 million for the prior
fiscal year. Non-GAAP operating income for the fiscal year 2023 was
US$279.8 million, compared to loss of
US$849.5 million for the prior fiscal
year.
Operating margin for the fiscal year 2023 was 6.3%, compared to
negative 31.6% for the prior fiscal year. Non-GAAP operating
margin, which excludes share-based compensation expenses for the
fiscal year 2023, was 9.3%, compared to negative 27.4% for the
prior fiscal year.
Net income attributable to New Oriental for the fiscal year 2023
was US$177.3 million, compared to a
loss of US$1,187.7 million for the
prior fiscal year. Basic and diluted net income per ADS
attributable to New Oriental for the fiscal year 2023 amounted to
US$1.06 and US$1.03, respectively.
Non-GAAP net income attributable to New Oriental for the fiscal
year 2023 was US$258.9 million,
compared to a loss of US$1,046.2
million for the prior fiscal year. Non-GAAP basic and
diluted net income per ADS attributable to New Oriental for the
fiscal year 2023 amounted to US$1.54
and US$1.51, respectively.
Outlook for the First Quarter of the Fiscal Year
2024
New Oriental expects total net revenues in the first quarter of
the fiscal year 2024 (June 1, 2023 to
August 31, 2023) to be in the range
of US$983.2 million to US$1,005.5 million, representing year over year
increase in the range of 32% to 35%.
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 26, 2023, U.S. Eastern Time (8 PM on July 26,
2023, 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, and unique personal PIN.
Conference call registration
link: https://register.vevent.com/register/BI16c238a4400247fdbab6e4ed386859ae. It
will automatically direct you to the registration page of "New
Oriental FY2023 Q4 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) and
personal PIN) 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 via the webcast
on-demand by registering at
https://edge.media-server.com/mmc/p/w73sywkc first. The replay
will be available until July 26,
2024.
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
educational services and test preparation courses, online education
and other services, overseas study consulting services, and
educational materials and distribution. 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 2024, 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 loss from
fair value change of 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 loss from fair
value change of investments. The related tax effect of the
exclusion of share-based compensation expenses and loss from fair
value change of investments has been immaterial. The presentation
of these non-GAAP financial measures is not intended to be
considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP. For
more information on these non-GAAP financial measures, please see
the tables captioned "Reconciliations of non-GAAP measures to the
most comparable GAAP measures" set forth at the end of this
release.
New Oriental believes that these non-GAAP financial measures
provide meaningful supplemental information regarding its
performance and liquidity by excluding share-based compensation
expenses and loss from fair value change of 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 loss from fair value change of
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
|
2023
|
|
2022
|
(Unaudited)
|
|
(Audited)
|
|
USD
|
|
USD
|
ASSETS:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
1,662,982
|
|
1,148,637
|
Restricted cash,
current
|
110,892
|
|
-
|
Term deposits,
current
|
855,784
|
|
1,140,066
|
Short-term
investments
|
1,477,843
|
|
1,902,254
|
Accounts receivable,
net
|
33,074
|
|
16,430
|
Inventory,
net
|
52,689
|
|
27,925
|
Prepaid expenses and
other current assets, net
|
211,240
|
|
215,402
|
Amounts due from
related parties, current
|
9,383
|
|
23,245
|
Total current
assets
|
4,413,887
|
|
4,473,959
|
|
|
|
|
|
|
|
|
Restricted cash,
non-current
|
31,553
|
|
45,890
|
Term deposits,
non-current
|
462,734
|
|
-
|
Property and
equipment, net
|
359,760
|
|
402,690
|
Land use rights,
net
|
3,321
|
|
3,627
|
Amounts due from
related parties, non-current
|
1,735
|
|
3,365
|
Long-term
deposits
|
26,492
|
|
33,409
|
Intangible assets,
net
|
25,179
|
|
2,800
|
Goodwill,
net
|
105,514
|
|
70,803
|
Long-term investments,
net
|
399,585
|
|
437,919
|
Deferred tax assets,
net
|
55,933
|
|
20,038
|
Right-of-use
assets
|
439,535
|
|
531,102
|
Other non-current
assets
|
67,230
|
|
9,064
|
Total
assets
|
6,392,458
|
|
6,034,666
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
69,764
|
|
22,289
|
Accrued expenses and
other current liabilities
|
569,437
|
|
510,264
|
Income taxes
payable
|
118,049
|
|
75,650
|
Amounts due to related
parties
|
346
|
|
226
|
Deferred
revenue
|
1,337,630
|
|
933,062
|
Operating lease
liability, current
|
155,752
|
|
168,623
|
Total current
liabilities
|
2,250,978
|
|
1,710,114
|
|
|
|
|
|
|
|
|
Deferred tax
liabilities
|
23,849
|
|
19,240
|
Unsecured senior
notes
|
14,653
|
|
65,394
|
Operating lease
liabilities, non-current
|
288,190
|
|
446,394
|
Total long-term
liabilities
|
326,692
|
|
531,028
|
|
|
|
|
Total
liabilities
|
2,577,670
|
|
2,241,142
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
New Oriental
Education & Technology Group Inc. shareholders'
equity
|
3,604,348
|
|
3,705,506
|
Non-controlling
interests
|
210,440
|
|
88,018
|
Total
equity
|
3,814,788
|
|
3,793,524
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
6,392,458
|
|
6,034,666
|
|
|
|
|
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
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
860,571
|
|
524,023
|
|
|
|
|
Operating cost and
expenses (note 1)
|
|
|
|
Cost of
revenues
|
391,615
|
|
247,827
|
Selling and
marketing
|
147,793
|
|
95,786
|
General and
administrative
|
273,109
|
|
286,059
|
Total operating cost
and expenses
|
812,517
|
|
629,672
|
Operating
income/(loss)
|
48,054
|
|
(105,649)
|
Loss from fair value
change of investments
|
(7,565)
|
|
(1,682)
|
Other income/(loss),
net
|
31,349
|
|
(68,396)
|
Provision for income
taxes
|
(19,442)
|
|
(5,618)
|
Loss from equity method
investments
|
(12,480)
|
|
(5,322)
|
Net
income/(loss)
|
39,916
|
|
(186,667)
|
|
|
|
|
Add: Net income
attributable to non-controlling interests
|
(10,957)
|
|
(2,635)
|
Net income/(loss)
attributable to New Oriental Education & Technology
Group Inc.'s shareholders
|
28,959
|
|
(189,302)
|
|
|
|
|
|
|
|
|
Net income/(loss)
per share attributable to New Oriental-Basic
(note 2)
|
0.02
|
|
(0.11)
|
|
|
|
|
Net income/(loss)
per share attributable to New Oriental-Diluted
(note 2)
|
0.02
|
|
(0.11)
|
|
|
|
|
Net income/(loss)
per ADS attributable to New Oriental-Basic
(note 2)
|
0.18
|
|
(1.12)
|
|
|
|
|
Net income/(loss)
per ADS attributable to New Oriental-Diluted
(note 2)
|
0.17
|
|
(1.12)
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATIONS 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
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
273,109
|
|
286,059
|
Less: Share-based
compensation expenses in general and
administrative expenses
|
23,587
|
|
28,838
|
Non-GAAP general and
administrative expenses
|
249,522
|
|
257,221
|
|
|
|
|
Total operating cost
and expenses
|
812,517
|
|
629,672
|
Less: Share-based
compensation expenses
|
30,538
|
|
28,784
|
Non-GAAP operating cost
and expenses
|
781,979
|
|
600,888
|
|
|
|
|
Operating
income/(loss)
|
48,054
|
|
(105,649)
|
Add: Share-based
compensation expenses
|
30,538
|
|
28,784
|
Non-GAAP operating
income/(loss)
|
78,592
|
|
(76,865)
|
|
|
|
|
Operating
margin
|
5.6 %
|
|
-20.2 %
|
Non-GAAP operating
margin
|
9.1 %
|
|
-14.7 %
|
|
|
|
|
Net income/(loss)
attributable to New Oriental
|
28,959
|
|
(189,302)
|
Add: Share-based
compensation expenses
|
25,567
|
|
27,281
|
Less: Loss from fair
value change of investments
|
(7,565)
|
|
(1,682)
|
Non-GAAP net
income/(loss) attributable to New Oriental
|
62,091
|
|
(160,339)
|
|
|
|
|
Net income/(loss) per
ADS attributable to New Oriental- Basic
(note 2)
|
0.18
|
|
(1.12)
|
Net income/(loss) per
ADS attributable to New Oriental- Diluted
(note 2)
|
0.17
|
|
(1.12)
|
|
|
|
|
Non-GAAP net
income/(loss) per ADS attributable to New Oriental -
Basic (note 2)
|
0.38
|
|
(0.94)
|
Non-GAAP net
income/(loss) per ADS attributable to New Oriental -
Diluted (note 2)
|
0.37
|
|
(0.94)
|
|
|
|
|
Weighted average shares
used in calculating basic net income/(loss)
per ADS (note 2)
|
1,653,059,954
|
|
1,696,966,183
|
Weighted average shares
used in calculating diluted net income/(loss)
per ADS (note 2)
|
1,668,721,317
|
|
1,696,966,183
|
|
|
|
|
Non-GAAP net
income/(loss) per share - basic
|
0.04
|
|
(0.09)
|
Non-GAAP net
income/(loss) per share - diluted
|
0.04
|
|
(0.09)
|
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
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
2,743
|
|
26
|
Selling and
marketing
|
4,208
|
|
(80)
|
General and
administrative
|
23,587
|
|
28,838
|
Total
|
30,538
|
|
28,784
|
|
|
|
|
|
|
|
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
|
|
|
|
|
For the Three Months
Ended May 31
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
Net cash provided by
operating activities
|
421,609
|
|
29,347
|
Net cash provided by/
(used in) investing activities
|
64,939
|
|
(238,428)
|
Net cash used in
financing activities
|
(76,522)
|
|
(50,872)
|
Effect of exchange rate
changes
|
(35,600)
|
|
(56,762)
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
374,426
|
|
(316,715)
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
1,431,001
|
|
1,511,242
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
1,805,427
|
|
1,194,527
|
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
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Net
revenues
|
2,997,760
|
|
3,105,246
|
|
|
|
|
Operating costs and
expenses (note 1):
|
|
|
|
Cost of
revenues
|
1,409,438
|
|
1,754,291
|
Selling and
marketing
|
444,693
|
|
466,895
|
General and
administrative
|
953,583
|
|
1,866,573
|
Total operating
costs and expenses
|
2,807,714
|
|
4,087,759
|
Operating
income/(loss)
|
190,046
|
|
(982,513)
|
Loss from fair value
change of investments
|
(860)
|
|
(14,933)
|
Other income/(loss),
net
|
119,345
|
|
(35,052)
|
Provision for income
taxes
|
(66,066)
|
|
(136,312)
|
Loss from equity method
investments
|
(7,102)
|
|
(51,466)
|
Net
income/(loss)
|
235,363
|
|
(1,220,276)
|
|
|
|
|
Add: Net (income)/loss
attributable to non-controlling interests
|
(58,022)
|
|
32,555
|
Net income/(loss)
attributable to New Oriental Education &
Technology Group Inc.' s shareholders
|
177,341
|
|
(1,187,721)
|
|
|
|
|
|
|
|
|
Net income/(loss)
per share attributable to New Oriental-Basic
(note 2)
|
0.11
|
|
(0.70)
|
|
|
|
|
Net income/(loss)
per share attributable to New Oriental-Diluted
(note 2)
|
0.10
|
|
(0.70)
|
|
|
|
|
Net income/(loss)
per ADS attributable to New Oriental-Basic
(note 2)
|
1.06
|
|
(7.00)
|
|
|
|
|
Net income/(loss)
per ADS attributable to New Oriental-Diluted
(note 2)
|
1.03
|
|
(7.00)
|
NEW ORIENTAL
EDUCATION & TECHNOLOGY GROUP INC.
|
RECONCILIATION OF
NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP
MEASURES
|
|
(In thousands except
for per share and per ADS amounts)
|
|
|
|
For the Year Ended
May 31
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
General and
administrative expenses
|
953,583
|
|
1,866,573
|
Less: Share-based
compensation expenses in general and
administrative expenses
|
81,289
|
|
135,536
|
Non-GAAP general and
administrative expenses
|
872,294
|
|
1,731,037
|
|
|
|
|
Total operating costs
and expenses
|
2,807,714
|
|
4,087,759
|
Less: Share-based
compensation expenses
|
89,788
|
|
132,968
|
Non-GAAP operating
costs and expenses
|
2,717,926
|
|
3,954,791
|
|
|
|
|
Operating
income/(loss)
|
190,046
|
|
(982,513)
|
Add: Share-based
compensation expenses
|
89,788
|
|
132,968
|
Non-GAAP operating
income/(loss)
|
279,834
|
|
(849,545)
|
|
|
|
|
Operating
margin
|
6.3 %
|
|
-31.6 %
|
Non-GAAP operating
margin
|
9.3 %
|
|
-27.4 %
|
|
|
|
|
Net income/(loss)
attributable to New Oriental
|
177,341
|
|
(1,187,721)
|
Add: Share-based
compensation expenses
|
80,708
|
|
126,550
|
Less: Loss from fair
value change of investments
|
(860)
|
|
(14,933)
|
Non-GAAP net
income/(loss) attributable to New Oriental
|
258,909
|
|
(1,046,238)
|
|
|
|
|
Net income/(loss) per
ADS attributable to New Oriental-
Basic (note 2)
|
1.06
|
|
(7.00)
|
Net income/(loss) per
ADS attributable to New Oriental-
Diluted (note 2)
|
1.03
|
|
(7.00)
|
|
|
|
|
Non-GAAP net
income/(loss) per ADS attributable to New
Oriental - Basic (note 2)
|
1.54
|
|
(6.17)
|
Non-GAAP net
income/(loss) per ADS attributable to New
Oriental - Diluted (note 2)
|
1.51
|
|
(6.17)
|
|
|
|
|
Weighted average shares
used in calculating basic net
income/(loss) per ADS (note 2)
|
1,678,264,547
|
|
1,696,419,232
|
Weighted average shares
used in calculating diluted net
income/(loss) per ADS (note 2)
|
1,685,631,987
|
|
1,696,419,232
|
|
|
|
|
Non-GAAP net
income/(loss) per share - basic
|
0.15
|
|
(0.62)
|
Non-GAAP net
income/(loss) per share - diluted
|
0.15
|
|
(0.62)
|
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
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
Cost of
revenues
|
2,749
|
|
(131)
|
Selling and
marketing
|
5,750
|
|
(2,437)
|
General and
administrative
|
81,289
|
|
135,536
|
Total
|
89,788
|
|
132,968
|
|
|
|
|
|
|
|
|
Note 2: Each ADS
represents ten common shares. For the three months and the year
ended May 31, 2022, 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
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
Net cash provided by/
(used in) operating activities
|
971,008
|
|
(1,280,453)
|
Net cash (used in)/
provided by investing activities
|
(37,411)
|
|
1,168,532
|
Net cash used in
financing activities
|
(246,867)
|
|
(230,858)
|
Effect of exchange rate
changes
|
(75,830)
|
|
(94,821)
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
610,900
|
|
(437,600)
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
1,194,527
|
|
1,632,127
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
1,805,427
|
|
1,194,527
|
View original
content:https://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-fourth-fiscal-quarter-and-the-fiscal-year-ended-may-31-2023-301886145.html
SOURCE New Oriental Education and Technology Group Inc.