-Net Revenues up by 35.2% Year-Over-Year
-Income
from Operations decreased by 26.8%
Year-Over-Year
-Non-GAAP Income from Operations decreased
by 7.8% Year-Over-Year
-Total Student Enrollments of
Normal Priced Long-term Course up by 72.1% Year-Over-Year
BEIJING, July 30, 2020 /PRNewswire/ -- TAL Education Group
(NYSE: TAL) ("TAL" or the "Company"), a leading K-12 after-school
tutoring services provider in China, today announced its unaudited financial
results for the first quarter of fiscal year 2021 ended
May 31, 2020.
Highlights for the First Quarter of Fiscal Year 2021
- Net revenues increased by 35.2% year-over-year to US$910.7 million from US$673.4 million in the same period of the prior
year.
- Income from operations decreased by 26.8% year-over-year to
US$35.5 million, from US$48.5 million in the same period of the prior
year.
- Non-GAAP income from operations, which excluded share-based
compensation expenses, decreased by 7.8% year-over-year to
US$68.8 million, from US$74.6 million in the same period of the prior
year.
- Net income attributable to TAL was US$81.7 million, compared to net loss
attributable to TAL of US$16.2
million in the same period of the prior year.
- Non-GAAP net income attributable to TAL, which excluded
share-based compensation expenses, was US$114.9 million, compared to Non-GAAP net income
attributable to TAL of US$9.9 million
in the same period of the prior year.
- Basic and diluted net income per American Depositary Share
("ADS") were US$0.14 and US$0.13, respectively. Non-GAAP basic and diluted
net income per ADS, which excluded share-based compensation
expenses, were US$0.19 and
US$0.18, respectively. Three ADSs
represent one Class A common share.
- Cash, cash equivalents and short-term investments totaled
US$2,914.4 million as of May 31, 2020, compared to US$2,219.3 million as of February 29, 2020.
- Total student enrollments of normal priced long-term course
increased by 72.1% year-over-year to approximately 2,956,380 from
approximately 1,718,190 in the same period of the prior year.
- Total physical network increased from 871 learning centers in
70 cities as of February 29, 2020 to
936 learning centers in 90 cities as of May
31, 2020.
Financial and Operating Data——First Quarter of Fiscal Year
2021
(In US$ thousands, except per ADS data, student
enrollments and percentages)
|
Three Months
Ended
|
|
May
31,
|
|
2019
|
2020
|
Pct.
Change
|
Net
revenues
|
673,414
|
910,664
|
35.2%
|
Operating
income
|
48,466
|
35,491
|
(26.8%)
|
Non-GAAP operating
income
|
74,550
|
68,756
|
(7.8%)
|
Net (loss)/ income
attributable to TAL
|
(16,156)
|
81,651
|
(605.4%)
|
Non-GAAP net income
attributable to TAL
|
9,928
|
114,916
|
1057.5%
|
Net (loss)/income per
ADS attributable to TAL – basic
|
(0.03)
|
0.14
|
(598.4%)
|
Net (loss)/income per
ADS attributable to TAL –
diluted
|
(0.03)
|
0.13
|
(578.3%)
|
Non-GAAP net income
per ADS attributable to TAL –
basic
|
0.02
|
0.19
|
1041.4%
|
Non-GAAP net income
per ADS attributable to TAL –
diluted
|
0.02
|
0.18
|
1045.9%
|
Total Student
Enrollments of normal priced long-term
course
|
1,718,190
|
2,956,380
|
72.1%
|
"The first fiscal quarter revenue results were driven by a solid
performance of online courses and the healthy growth of Xueersi
Peiyou business," said Rong Luo, TAL's chief financial officer.
"Our offline business may still face some continued pressure due to
the COVID-19 outbreak, but as progress is made in containing the
spread of COVID-19, we are working on the gradual resumption of our
offline activities across different business segments."
"We continue to follow the necessary and appropriate guidelines
and protect the safety and health of all our students and
employees. We believe our business operations are prepared to offer
TAL's services under any circumstance and make any short-term
adjustments when needed. We remain fully confident about the market
potential of China's education
industry and the general progress towards resumption of regular
work and school activities," Mr. Luo continued.
Financial Results for the First Quarter of Fiscal Year
2021
Net Revenues
In the first quarter of fiscal year 2021, TAL reported net
revenues of US$910.7 million,
representing a 35.2% increase from US$673.4
million in the first quarter of fiscal year 2020. The
increase was mainly driven by an increase in total student
enrollments of normal priced long-term course, which increased by
72.1% to approximately 2,956,380 from approximately
1,718,190 in the same period of the prior year. The increase
in total student enrollments of normal priced long-term
course was primarily driven by the growth of enrollments in
the small class offerings and online courses.
Operating Costs and Expenses
In the first quarter of fiscal year 2021, operating costs and
expenses were US$880.0 million,
representing a 40.3% increase from US$627.4
million in the first quarter of fiscal year 2020. Non-GAAP
operating costs and expenses, which excluded share-based
compensation expenses, were US$846.8
million, a 40.8% increase from US$601.3 million in the first quarter of fiscal
year 2020.
Cost of revenues increased by 44.9% to US$429.5 million from US$296.4 million in the first quarter of fiscal
year 2020. The increase in cost of revenues was mainly due to an
increase in teacher compensation, rental costs and learning
materials. Non-GAAP cost of revenues, which excluded share-based
compensation expenses, increased by 45.0% to US$429.2 million, from US$296.1 million in the first quarter of fiscal
year 2020.
Selling and marketing expenses increased by 41.0% to
US$219.1 million from US$155.4 million in the first quarter of fiscal
year 2020. Non-GAAP selling and marketing expenses, which excluded
share-based compensation expenses, increased by 39.6% to
US$211.2 million, from US$151.4 million in the first quarter of fiscal
year 2020. The increase of selling and marketing expenses in the
first quarter of fiscal year 2021 was primarily a result of more
marketing promotion activities to expand our customer base and
brand enhancement, as well as a rise in the compensation to sales
and marketing staff to support a greater number of programs and
service offerings compared to the same period in the prior
year.
General and administrative expenses increased by 31.6% to
US$231.1 million from US$175.6 million in the first quarter of fiscal
year 2020. The increase in general and administrative expenses was
mainly due to an increase of the number of our general and
administrative personnel compared to the same period in the prior
year and a rise in compensation to our general and administrative
personnel. Non-GAAP general and administrative expenses, which
excluded share-based compensation expenses, increased by 33.9% to
US$206.0 million, from US$153.8 million in the first quarter of fiscal
year 2020.
Total share-based compensation expenses allocated to the related
operating costs and expenses increased by 27.5% to US$33.3 million in the first quarter of fiscal
year 2021 from US$26.1 million in the
same period of fiscal year 2020.
Gross
Profit
Gross profit increased by 27.6% to US$481.1 million from US$377.0 million in the first quarter of fiscal
year 2020.
Income from Operations
Income from operations decreased by 26.8% year-over-year to
US$35.5 million, from US$48.5 million in the first quarter of fiscal
year 2020. Non-GAAP income from operations, which excluded
share-based compensation expenses, decreased by 7.8% to
US$68.8 million from US$74.6 million in the first quarter of fiscal
year 2020.
Other (expense)/Income
Other income was US$42.1 million
for the first quarter of fiscal year 2021, compared to other
expense of US$31.3 million in the
first quarter of fiscal year 2020.
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was US$2.3 million for the first quarter of fiscal
year 2021, compared to US$50.6
million for the first quarter of fiscal year 2020.
Impairment loss on long-term investments was mainly due to declines
in the value of long-term investments in several investees.
Income Tax Benefit/(expense)
Income tax expense was US$22.0
million in the first quarter of fiscal year 2021, compared
to US$2.8 million of income tax
benefit in the first quarter of fiscal year 2020.
Net (loss)/Income Attributable to TAL Education
Group
Net income attributable to TAL was US$81.7 million in the first quarter of fiscal
year 2021, compared to net loss attributable to TAL of US$16.2 million in the first quarter of fiscal
year 2020. Non-GAAP net income attributable to TAL, which excluded
share-based compensation expenses, was US$114.9 million, compared to Non-GAAP net income
attributable to TAL of US$9.9 million
in the first quarter of fiscal year 2020.
Basic and Diluted Net (loss)/Income per ADS
Basic and diluted net income per ADS were US$0.14 and US$0.13, respectively, in the first quarter of
fiscal year 2021. Non-GAAP basic and diluted net income per ADS,
which excluded share-based compensation expenses, were US$0.19 and US$0.18, respectively, in the first quarter of
fiscal year 2021.
Cash Flow
Net operating cash flow for the first quarter of fiscal
year 2021 was US$799.6
million. Capital expenditures for the first quarter of
fiscal year 2021 were US$53.2
million, compared to US$41.4
million for the first quarter of fiscal year 2020. The
capital expenditures for the first quarter of fiscal year 2021 was
expenditure in relation to our construction project.
Cash, Cash Equivalents, and Short-Term
Investments
As of May 31, 2020, the Company
had US$2,323.8 million of cash and
cash equivalents and US$590.6 million
of short-term investments, compared to US$1,873.9 million of cash and cash equivalents
and US$345.4 million of short-term
investments as of February 29,
2020.
Deferred Revenue
The Company's deferred revenue balance was US$1,495.4 million, compared to US$968.4 million as of May
31, 2019, representing a year-over-year increase of 54.4%.
Deferred revenue primarily consisted of the tuition collected in
advance of Xueersi Peiyou small classes and online courses through
www.xueersi.com, as well as deferred revenue related to other
businesses.
Business Outlook
Based on our current estimates, total net revenues for the
second quarter of fiscal year 2021 are expected to be between
US$1,077.6 million and US$1,105.0 million, representing an increase of
18% to 21% on a year-over-year basis.
If not taking into consideration the impact of potential change
in exchange rate between Renminbi and the U.S. Dollar, the
projected revenue growth rate is expected to be in the range of 20%
to 23% for the second quarter of fiscal year 2021.
These estimates reflect the Company's current expectation, which
is subject to change.
Conference Call
The Company will host a conference call and live webcast to
discuss its financial results for the first fiscal quarter of
fiscal year 2021 ended May 31, 2020
at 8:00 a.m. Eastern Time on
July 30, 2020 (8:00 p.m. Beijing time on July
30, 2020).
Please note that you will need to pre-register for conference
call participation, using the link provided below. Upon
registering, you will be sent participant dial-in numbers, Direct
Event passcode and unique registrant ID by email.
Conference call registration link:
http://apac.directeventreg.com/registration/event/6360713. It will
automatically direct you to the registration page of "TAL Education
Group First Quarter of Fiscal Year 2021 Earnings Conference Call",
where you may fill in your details for RSVP. When you are requested
to submit a participant conference ID, please enter the number
"6360713".
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 unique registrant ID) provided in the
confirmation email that you have received following your
pre-registration.
A live and archived webcast of the conference call will be
available on the Investor Relations section of TAL's website at
https://ir.100tal.com/.
A telephone replay of the conference call will be available
through 9:59 a.m. on August 7, 2020, U.S. Eastern time (9:59 p.m. on August 7,
2020, Beijing time,
2020).
The dial-in details for the replay are as follows:
- U.S. toll
free:
|
+1-855-452-5696
|
- Hong Kong toll
free:
|
800-963-117
|
- International
toll:
|
+61-2-8199-0299
|
Conference
ID:
|
6360713
|
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 second quarter of fiscal year 2021, quotations
from management in this announcement, as well as TAL Education
Group's strategic and operational plans, contain forward-looking
statements. The Company may also make written or oral
forward-looking statements in its reports filed with, 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 the Company'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: the Company's ability to continue to
attract students to enroll in its courses; the Company's ability to
continue to recruit, train and retain qualified teachers; the
Company's ability to improve the content of its existing course
offerings and to develop new courses; the Company's ability to
maintain and enhance its brand; the Company's ability to maintain
and continue to improve its teaching results; and the Company's
ability to compete effectively against its competitors. Further
information regarding these and other risks is included in the
Company's reports filed with, or furnished to the U.S. Securities
and Exchange Commission. All information provided in this press
release and in the attachments is as of the date of this press
release, and TAL Education Group undertakes no duty to update such
information or any forward-looking statement, except as required
under applicable law.
About TAL Education Group
TAL Education Group is a leading K-12 after-school tutoring
services provider in China. The
acronym "TAL" stands for "Tomorrow Advancing Life", which reflects
our vision to promote top learning opportunities for Chinese
students through both high-quality teaching and content, as well as
leading edge application of technology in the education experience.
TAL Education Group offers comprehensive tutoring services to
students from pre-school to the twelfth grade through three
flexible class formats: small classes, personalized premium
services, and online courses. Our tutoring services cover the core
academic subjects in China's
school curriculum as well as competence oriented programs. The
Company's learning center network currently covers 90 cities.
We also operate www.jzb.com, a leading online education platform
in China. Our ADSs trade on the
New York Stock Exchange under the symbol "TAL".
About Non-GAAP Financial Measures
In evaluating its business, TAL considers and uses the following
measures defined as non-GAAP financial measures by the SEC as
supplemental metrics to review and assess its operating
performance: non-GAAP operating costs and expenses, non-GAAP cost
of revenues, non-GAAP selling and marketing expenses, non-GAAP
general and administrative expenses, non-GAAP income from
operations, non-GAAP net income attributable to TAL, non-GAAP basic
and non-GAAP diluted net income per ADS. To present each of these
non-GAAP measures, the Company excludes share-based compensation
expenses. 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 table captioned "Reconciliations of non-GAAP
measures to the most comparable GAAP measures" set forth at the end
of this release.
TAL believes that these non-GAAP financial measures provide
meaningful supplemental information regarding its performance and
liquidity by excluding share-based expenses that may not be
indicative of its operating performance from a cash perspective.
TAL believes that both management and investors benefit from these
non-GAAP financial measures in assessing its performance and when
planning and forecasting future periods. These non-GAAP financial
measures also facilitate management's internal comparisons to TAL's
historical performance and liquidity. TAL computes its non-GAAP
financial measures using the same consistent method from quarter to
quarter and from period to period. TAL 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 non-GAAP measures is that these non-GAAP
measures exclude share-based compensation charges that have been
and will continue to be for the foreseeable future a significant
recurring expense in the Company's 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.
For further information, please contact:
Echo Yan
Investor Relations
TAL Education Group
Tel: +86 10 5292 6658
Email: ir@100tal.com
Caroline Straathof
IR Inside
Tel: +31 6 5462 4301
Email: info@irinside.com
TAL EDUCATION
GROUP
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of
U.S. dollars)
|
|
|
|
|
As
of
February 29,
2020
|
|
As
of
May 31,
2020
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and
cash equivalents
|
$
1,873,866
|
|
$
2,323,778
|
|
Restricted cash-current
|
28,084
|
|
26,575
|
|
Short-term investments
|
345,457
|
|
590,644
|
|
Inventory
|
25,832
|
|
32,980
|
|
Amounts
due from related parties-current
|
3,642
|
|
2,095
|
|
Income
tax receivables
|
11,548
|
|
15,317
|
|
Prepaid
expenses and other current assets
|
207,352
|
|
189,219
|
|
Total current
assets
|
2,495,781
|
|
3,180,608
|
|
Restricted
cash-non-current
|
13,235
|
|
13,934
|
|
Property and
equipment, net
|
366,656
|
|
396,599
|
|
Deferred tax
assets-non-current
|
79,534
|
|
87,610
|
|
Rental
deposits
|
72,721
|
|
79,629
|
|
Intangible
assets, net
|
58,985
|
|
77,287
|
|
Land use
right, net
|
204,853
|
|
199,676
|
|
Goodwill
|
378,913
|
|
542,870
|
|
Long-term
investments
|
571,601
|
|
604,992
|
|
Long-term
prepayments and other non-current assets
|
85,275
|
|
59,669
|
|
Operating
lease right-of-use assets
|
1,243,692
|
|
1,326,530
|
|
Total
assets
|
$
5,571,246
|
|
$
6,569,404
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable
(including accounts payable of the
consolidated VIEs without recourse to TAL
Education
Group of 104,231 and 140,300 as of February 29,
2020 and
May 31, 2020, respectively)
|
$ 117,770
|
|
$ 151,970
|
|
Deferred
revenue-current (including deferred revenue-current
of the consolidated VIEs without recourse to
TAL
Education Group of 733,253 and 1,362,996 as of
February
29, 2020 and May 31, 2020, respectively)
|
780,167
|
|
1,445,072
|
|
Amounts due to
related parties-current (including amounts due
to related parties-current of the consolidated VIEs
without
recourse to TAL Education Group of 4,264 and 2,838 as
of February
29, 2020 and May 31, 2020, respectively)
|
4,361
|
|
2,890
|
|
Accrued expenses and
other current liabilities (including
accrued expenses and other current liabilities of
the
consolidated VIEs without recourse to TAL
Education
Group of 470,519 and 558,949 as of February 29,
2020
and May 31, 2020, respectively)
|
552,650
|
|
658,305
|
|
Income tax payable
(including income tax payable of the
consolidated VIEs without recourse to TAL
Education
Group of 43,233 and
25,402 as of February 29, 2020 and
May 31, 2020, respectively)
|
46,650
|
|
19,976
|
|
Short-term debt and
current portion of long-term debt
(including short-term debt and current portion of
long-term
debt of the consolidated VIEs without recourse to
TAL
Education Group of nil and 2,383 as of February 29,
2020
and May 31, 2020, respectively)
|
-
|
|
2,383
|
|
Operating lease
liabilities, current portion (including
operating lease liabilities, current portion of the
consolidated
VIEs without recourse to TAL Education Group of
276,712
and 299,120 as of February 29, 2020 and May 31,
2020,
respectively)
|
304,960
|
|
327,360
|
|
Total current
liabilities
|
1,806,558
|
|
2,607,956
|
|
Deferred
revenue-non-current (including deferred revenue-
non-current of the consolidated VIEs without recourse
to
TAL Education Group of 833 and 50,339 as of February
29,
2020 and May 31, 2020, respectively)
|
833
|
|
50,339
|
|
Deferred tax
liabilities-non-current (including deferred tax
liabilities-non-current of the consolidated VIEs
without
recourse to TAL Education Group of 7,197 and 11,977 as
of
February 29, 2020 and May 31, 2020,
respectively)
|
7,789
|
|
12,678
|
|
Long-term debt
(including long-term debt of the consolidated
VIEs without recourse to TAL Education Group of nil
and
nil as of February 29, 2020 and May 31, 2020,
respectively)
|
261,950
|
|
263,000
|
|
Operating lease
liabilities, non-current portion (including
operating lease liabilities, non-current portion of
the
consolidated VIEs without recourse to TAL
Education
Group of 883,603 and 950,083 as of February 29,
2020
and May 31, 2020, respectively)
|
949,919
|
|
1,018,471
|
|
Total
liabilities
|
3,027,049
|
|
3,952,444
|
|
Mezzanine
equity
|
|
|
|
|
Redeemable
non-controlling interests
|
-
|
|
1,775
|
|
Equity
|
|
|
|
|
Class A common
shares
|
133
|
|
133
|
|
Class B common
shares
|
67
|
|
67
|
|
Additional paid-in
capital
|
1,675,640
|
|
1,699,808
|
|
Statutory
reserve
|
82,712
|
|
82,632
|
|
Retained
earnings
|
786,097
|
|
861,177
|
|
Accumulated other
comprehensive loss
|
(28,913)
|
|
(53,876)
|
|
Total TAL
Education Group's equity
|
2,515,736
|
|
2,589,941
|
|
Noncontrolling
interest
|
28,461
|
|
25,244
|
|
Total
equity
|
2,544,197
|
|
2,615,185
|
|
Total liabilities,
mezzanine equity and equity
|
$
5,571,246
|
|
$
6,569,404
|
|
|
|
|
|
|
|
TAL EDUCATION
GROUP
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands of
U.S. dollars, except share, ADS, per share and per ADS
data)
|
|
|
For the Three
Months Ended
May
31,
|
|
2019
|
|
2020
|
Net
revenues
|
$ 673,414
|
|
$ 910,664
|
Cost of revenues
(note 1)
|
296,371
|
|
429,515
|
Gross
profit
|
377,043
|
|
481,149
|
Operating expenses
(note 1)
|
|
|
|
Selling and
marketing
|
155,399
|
|
219,077
|
General and
administrative
|
175,585
|
|
231,136
|
Impairment loss on
intangible assets and goodwill
|
-
|
|
304
|
Total operating
expenses
|
330,984
|
|
450,517
|
Government
subsidies
|
2,407
|
|
4,859
|
Income from
operations
|
48,466
|
|
35,491
|
Interest
income
|
16,087
|
|
26,489
|
Interest
expense
|
(3,124)
|
|
(3,596)
|
Other
(expense)/income
|
(31,331)
|
|
42,111
|
Impairment loss on
long-term investments
|
(50,594)
|
|
(2,300)
|
(Loss)/income before
income tax and loss from equity method
investments
|
(20,496)
|
|
98,195
|
Income tax
benefit/(expense)
|
2,759
|
|
(22,000)
|
(Loss)/income from
equity method investments
|
(1,331)
|
|
3,340
|
Net
(loss)/income
|
$ (19,068)
|
|
$ 79,535
|
Add: Net loss
attributable to noncontrolling interest
|
2,912
|
|
2,116
|
Total net
(loss)/income attributable to TAL Education
Group
|
$ (16,156)
|
|
$ 81,651
|
Net (loss)/income
per common share
|
|
|
|
Basic
|
$ (0.08)
|
|
$ 0.41
|
Diluted
|
(0.08)
|
|
0.39
|
Net (loss)/income
per ADS (note 2)
|
|
|
|
Basic
|
$ (0.03)
|
|
$ 0.14
|
Diluted
|
(0.03)
|
|
0.13
|
Weighted average
shares used in calculating net (loss)/income
per common share
|
|
|
|
Basic
|
197,160,090
|
|
199,942,865
|
Diluted
|
197,160,090
|
|
208,308,474
|
|
|
|
|
Note1: Share-based
compensation expenses are included in the operating costs and
expenses as follows:
|
|
|
|
|
|
For the Three
Months
|
|
Ended May
31,
|
|
2019
|
|
2020
|
Cost of
revenues
|
$ 247
|
|
$ 264
|
Selling and marketing
expenses
|
4,040
|
|
7,853
|
General and
administrative expenses
|
21,797
|
|
25,148
|
Total
|
$ 26,084
|
|
$ 33,265
|
|
Note 2: Three ADSs
represent one Class A common Share.
|
TAL EDUCATION
GROUP
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE (LOSS)/INCOME
|
(In thousands of
U.S. dollars)
|
|
|
|
|
|
For the Three
Months Ended
May
31,
|
|
2019
|
|
2020
|
|
|
|
|
Net
(loss)/income
|
$ (19,068)
|
|
$ 79,535
|
Other comprehensive
loss, net of tax
|
(34,956)
|
|
(25,435)
|
Comprehensive
(loss)/income
|
(54,024)
|
|
54,100
|
Add: Comprehensive
loss attributable to
noncontrolling interest
|
4,178
|
|
2,588
|
Comprehensive
(loss)/income attributable to
TAL Education Group
|
$ (49,846)
|
|
$ 56,688
|
TAL EDUCATION
GROUP
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
CASH
FLOWS
(In thousands of
U.S. dollars)
|
|
|
For the Three
Months Ended
May
31,
|
|
2019
|
|
2020
|
Net cash provided by
operating activities
|
$ 568,464
|
|
$ 792,910
|
Net cash used in
investing activities
|
(115,840)
|
|
(330,549)
|
Net cash used in
financing activities
|
(140,025)
|
|
(9,728)
|
Effect of exchange
rate changes
|
2,267
|
|
(3,531)
|
|
|
|
|
Net increase in cash,
cash equivalents and restricted cash
|
314,866
|
|
449,102
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
1,263,701
|
|
1,915,185
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
1,578,567
|
|
$
2,364,287
|
TAL EDUCATION
GROUP
Reconciliation of
Non-GAAP Measures to the Most Comparable GAAP
Measures
(In thousands of
U.S. dollars, except share, ADS, per share and per ADS
data)
|
|
|
For the Three
Months Ended
May
31,
|
|
2019
|
|
2020
|
|
|
|
|
Cost of
revenues
|
$ 296,371
|
|
$ 429,515
|
Share-based
compensation expense in cost of
revenues
|
247
|
|
264
|
Non-GAAP cost of
revenues
|
296,124
|
|
429,251
|
|
|
|
|
Selling and
marketing expenses
|
155,399
|
|
219,077
|
Share-based
compensation expense in selling and
marketing expenses
|
4,040
|
|
7,853
|
Non-GAAP selling
and marketing expenses
|
151,359
|
|
211,224
|
General and
administrative expenses
|
175,585
|
|
231,136
|
Share-based
compensation expense in general and
administrative expenses
|
21,797
|
|
25,148
|
Non-GAAP general
and administrative expenses
|
153,788
|
|
205,988
|
|
|
|
|
Operating costs
and expenses
|
627,355
|
|
880,032
|
Share-based
compensation expense in operating costs
and expenses
|
26,084
|
|
33,265
|
Non-GAAP operating
costs and expenses
|
601,271
|
|
846,767
|
|
|
|
|
Income from
operations
|
48,466
|
|
35,491
|
Share-based
compensation expenses
|
26,084
|
|
33,265
|
Non-GAAP income
from operations
|
74,550
|
|
68,756
|
|
|
|
|
Net (loss)/income
attributable to TAL Education
Group
|
(16,156)
|
|
81,651
|
Share-based
compensation expenses
|
26,084
|
|
33,265
|
Non-GAAP net
income attributable to TAL
Education Group
|
$ 9,928
|
|
$ 114,916
|
Net (loss)/income
per ADS
|
|
|
|
Basic
|
$ (0.03)
|
|
$ 0.14
|
Diluted
|
(0.03)
|
|
0.13
|
Non-GAAP net
income per ADS
|
|
|
|
Basic
|
$ 0.02
|
|
$ 0.19
|
Diluted
|
0.02
|
|
0.18
|
|
|
|
|
ADSs used in
calculating net (loss)/income per
ADS
|
|
|
|
Basic
|
591,480,270
|
|
599,828,595
|
Diluted
|
591,480,270
|
|
624,925,422
|
ADSs used in
calculating Non-GAAP net income
per ADS
|
|
|
|
Basic
|
591,480,270
|
|
599,828,595
|
Diluted
|
618,664,848
|
|
624,925,422
|
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SOURCE TAL Education Group