- Quarterly Results:
Net Revenues up by 58.9%
Year-Over-Year for the Fourth Fiscal Quarter
Non-GAAP
Loss from Operations was US$216.9
million, compared to Non-GAAP Loss from Operations of
US$8.4 million in the Same Period of
Prior Year
Total Student Enrollments of Normal Priced
Long-term Course up by 44.0% Year-Over-Year
- Fiscal Year Results:
Net Revenues up by
37.3%
Non-GAAP Loss from Operations was
US$233.3 million, compared to
Non-GAAP Income from Operations of US$255.4
million in Fiscal Year 2020
Non-GAAP net income
attributable to TAL, which excluded share-based compensation
expenses, was US$89.0 million,
compared to non-GAAP net income attributable to TAL of US$7.7 million in fiscal year
2020
Quarterly Average Student Enrollments of Normal
Priced Long-term Course up by 54.4% Year-Over-Year
BEIJING, April 22, 2021 /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 fourth quarter and the fiscal year ended
February 28, 2021.
Highlights for the Fourth Quarter of Fiscal Year 2021
- Net revenues increased by 58.9% year-over-year to US$1,362.7 million from US$857.7 million in the same period of the prior
year.
- Loss from operations was US$297.2
million, compared to loss from operations of US$41.3 million in the same period of the prior
year.
- Non-GAAP loss from operations, which excluded share-based
compensation expenses, was US$216.9
million, compared to non-GAAP loss from operations of
US$8.4 million in the same period of
the prior year.
- Net loss attributable to TAL was US$169.0 million, compared to net loss
attributable to TAL of US$90.1
million in the same period of the prior year.
- Non-GAAP net loss attributable to TAL, which excluded
share-based compensation expenses, was US$88.7 million, compared to non-GAAP net loss
attributable to TAL of US$57.2
million in the same period of the prior year.
- Basic and diluted net loss per American Depositary Share
("ADS") were both US$0.27. Non-GAAP
basic and diluted net loss per ADS, which excluded share-based
compensation expenses, were both US$0.14. Three ADSs represent one Class A common
share.
- Cash, cash equivalents and short-term investments totaled
US$5,937.5 million as of February 28, 2021, compared to US$2,219.3 million as of February 29, 2020.
- Total student enrollments of normal priced long-term course
increased by 44.0% year-over-year to approximately 6,690,950 from
approximately 4,646,040 in the same period of the prior year.
Highlights for the Fiscal Year Ended February 28, 2021
- Net revenues increased by 37.3% year-over-year to US$4,495.8 million from US$3,273.3 million in fiscal year 2020.
- Loss from operations was US$438.2
million, compared to income from operations of US$137.4 million in fiscal year 2020.
- Non-GAAP loss from operations, which excluded share-based
compensation expenses, was US$233.3
million, compared to non-GAAP income from operations of
US$255.4 million in fiscal year
2020.
- Net loss attributable to TAL was US$116.0 million, compared to net loss
attributable to TAL of US$110.2
million in fiscal year 2020.
- Non-GAAP net income attributable to TAL, which excluded
share-based compensation expenses, was US$89.0 million, compared to non-GAAP net income
attributable to TAL of US$7.7 million
in fiscal year 2020.
- Basic and diluted net loss per ADS were both US$0.19. Non-GAAP basic and diluted net income
per ADS, excluding share-based compensation expenses, were
US$0.15 and US$0.14, respectively.
- Average student enrollments of normal priced long-term course
per quarter during fiscal year 2021 increased by 54.4%
year-over-year to approximately 4,669,140 from approximately
3,023,840 in fiscal year 2020.
- Total physical network increased from 871 learning centers in
70 cities as of February 29, 2020 to
1,098 learning centers in 110 cities as of February 28, 2021.
Financial and
Operating Data——Fourth Quarter and Fiscal Year 2021
|
(In US$ thousands,
except per ADS data, student enrollments and
percentages)
|
|
|
Three Months
Ended
|
|
February
29/28,
|
|
2020
|
2021
|
Pct.
Change
|
Net
revenues
|
857,682
|
1,362,689
|
58.9%
|
Operating
loss
|
(41,256)
|
(297,210)
|
620.4%
|
Non-GAAP operating
loss
|
(8,392)
|
(216,872)
|
2,484.3%
|
Net loss attributable
to TAL
|
(90,074)
|
(169,002)
|
87.6%
|
Non-GAAP net loss
attributable to TAL
|
(57,210)
|
(88,664)
|
55.0%
|
Net loss per ADS
attributable to TAL – basic
|
(0.15)
|
(0.27)
|
76.0%
|
Net loss per ADS
attributable to TAL – diluted
|
(0.15)
|
(0.27)
|
76.0%
|
Non-GAAP net loss per
ADS attributable to TAL –
basic
|
(0.10)
|
(0.14)
|
45.4%
|
Non-GAAP net loss per
ADS attributable to TAL –
diluted
|
(0.10)
|
(0.14)
|
45.4%
|
Total Student
Enrollments of normal priced long-term
course
|
4,646,040
|
6,690,950
|
44.0%
|
|
|
|
Fiscal Year
Ended
|
|
February
29/28,
|
|
2020
|
2021
|
Pct.
Change
|
Net
revenues
|
3,273,308
|
4,495,755
|
37.3%
|
Operating
income/(loss)
|
137,443
|
(438,224)
|
(418.8%)
|
Non-GAAP operating
income/(loss)
|
255,386
|
(233,279)
|
(191.3%)
|
Net loss attributable
to TAL
|
(110,195)
|
(115,990)
|
5.3%
|
Non-GAAP net income
attributable to TAL
|
7,748
|
88,955
|
1,048.1%
|
Net loss per ADS
attributable to TAL – basic
|
(0.19)
|
(0.19)
|
2.5%
|
Net loss per ADS
attributable to TAL – diluted
|
(0.19)
|
(0.19)
|
2.5%
|
Non-GAAP net income
per ADS attributable to TAL –
basic
|
0.01
|
0.15
|
1,017.5%
|
Non-GAAP net income
per ADS attributable to TAL –
diluted
|
0.01
|
0.14
|
1,024.9%
|
Average Student
Enrollments of normal priced long-term
course
|
3,023,840
|
4,669,140
|
54.4%
|
"In the fiscal year 2021, despite the challenges of the COVID-19
pandemic, TAL realized 37.3% revenue growth. Our strength in both
offline and online education capabilities enabled us to offer
tutoring support to our students under the changing circumstances,"
said Rong Luo, TAL's chief financial officer.
"Looking ahead, we will keep investing in the quality of our
products, service and technology as well as in sustainable
marketing efforts. We will also further diversify our products,
content and service while improving operational efficiency to meet
our students and parents evolving needs at affordable prices," Mr.
Luo added.
Financial Results for the Fourth Quarter of Fiscal Year
2021
Net Revenues
In the fourth quarter of fiscal year 2021, TAL reported net
revenues of US$1,362.7 million,
representing a 58.9% increase from US$857.7
million in the fourth 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
44.0% to approximately 6,690,950 from approximately
4,646,040 in the same period of the prior year. The increase
in total student enrollments of normal priced long-term
course was primarily the result of the growth of enrollments
in the small class offerings and online courses.
Operating Costs and Expenses
In the fourth quarter of fiscal year 2021, operating costs and
expenses were US$1,662.0 million,
representing an 84.8% increase from US$899.3
million in the fourth quarter of fiscal year 2020. Non-GAAP
operating costs and expenses, which excluded share-based
compensation expenses, were US$1,581.7
million, representing an 82.5% increase from US$866.5 million in the fourth quarter of fiscal
year 2020.
Cost of revenues increased by 43.3% to US$581.4 million from US$405.9 million in the fourth 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 43.2% to US$580.8 million, from US$405.6 million in the fourth quarter of fiscal
year 2020.
Selling and marketing expenses increased by 171.6% to
US$660.5 million from US$243.2 million in the fourth quarter of fiscal
year 2020. Non-GAAP selling and marketing expenses, which excluded
share-based compensation expenses, increased by 168.4% to
US$635.5 million, from US$236.8 million in the fourth quarter of fiscal
year 2020. The increase of selling and marketing expenses in the
fourth 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 57.6% to
US$348.6 million from US$221.2 million in the fourth 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 50.7% to
US$293.9 million, from US$195.0 million in the fourth quarter of fiscal
year 2020.
Total share-based compensation expenses allocated to the related
operating costs and expenses increased by 144.5% to US$80.3 million in the fourth quarter of fiscal
year 2021 from US$32.9 million in the
same period of fiscal year 2020.
Impairment loss on intangible assets and goodwill was
US$71.5 million for the fourth
quarter of fiscal year 2021, compared to US$29.0 million for the fourth quarter of fiscal
year 2020. Impairment loss on goodwill was mainly due to the
decline in reporting units' fair value.
Gross
Profit
Gross profit increased by 72.9% to US$781.2 million from US$451.8 million in the fourth quarter of fiscal
year 2020.
Loss from Operations
Loss from operations was US$297.2
million in the fourth quarter of fiscal year 2021, compared
to loss from operations of US$41.3
million in the fourth quarter of fiscal year 2020. Non-GAAP
loss from operations, which excluded share-based compensation
expenses, was US$216.9 million,
compared to Non-GAAP loss from operations of US$8.4 million in the same period of the prior
year.
Other (expense)/Income
Other income was US$7.9
million for the fourth quarter of fiscal year 2021, compared
to other expense of US$4.7 million in
the fourth quarter of fiscal year 2020. Other income in the fourth
quarter of fiscal year 2021 primarily consisted of the value-added
tax and social security expense exemption offered by the government
during the COVID-19 impacted period, and partially offset by
impairment loss of non-current assets.
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was US$6.2 for the fourth quarter of fiscal year
2021, compared to US$2.8 million for
the fourth 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 (expense)/Benefit
Income tax benefit was US$80.5
million in the fourth quarter of fiscal year 2021, compared
to US$63.6 million of income tax
expense in the fourth quarter of fiscal year 2020.
Net Loss Attributable to TAL Education Group
Net loss attributable to TAL was US$169.0
million in the fourth quarter of fiscal year 2021, compared
to net loss attributable to TAL of US$90.1
million in the fourth quarter of fiscal year 2020. Non-GAAP
net loss attributable to TAL, which excluded share-based
compensation expenses, was US$88.7
million, compared to Non-GAAP net loss attributable to TAL
of US$57.2 million in the fourth
quarter of fiscal year 2020.
Basic and Diluted Net Loss per ADS
Basic and diluted net loss per ADS were both US$0.27 in the fourth quarter of fiscal year
2021. Non-GAAP basic and diluted net loss per ADS, which excluded
share-based compensation expenses, were both US$0.14, in the fourth quarter of fiscal year
2021.
Cash Flow
Net cash flow used in operating activities for the fourth
quarter of fiscal year 2021 was US$626.5
million. Capital expenditures for the fourth quarter of
fiscal year 2021 were US$81.8
million, an increase of US$19.5
million from US$62.3 million
for the fourth quarter of fiscal year 2020. The increase of capital
expenditures was mainly due to leasehold improvement.
Cash, Cash Equivalents, and Short-Term
Investments
As of February 28, 2021, the
Company had US$3,243.0 million of
cash and cash equivalents and US$2,694.5
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$1,417.5 million, compared to US$781.0 million as of February 29, 2020, representing a year-over-year
increase of 81.5%, which was mainly contributed by the tuition
collected in advance of part of the spring semester of Xueersi
Peiyou small classes and online courses through www.xueersi.com, as
well as deferred revenue related to other businesses.
Financial Results for the Fiscal Year Ended February 28, 2021
Net Revenues
For fiscal year 2021, TAL reported net revenues of US$4,495.8 million, representing a 37.3% increase
from US$3,273.3 million in the fiscal
year 2020. The increase was mainly driven by the growth in average
student enrollments, which increased by 54.4% to approximately
4,669,140 from approximately 3,023,840 in the prior year. The
increase in average student enrollments was primarily the result of
the growth of enrollments in the small class offerings and online
courses.
Operating Costs and Expenses
In the fiscal year 2021, operating costs and expenses were
US$4,953.5 million, a 57.5% increase
from US$3,145.3 million in the fiscal
year 2020. Non-GAAP operating costs and expenses, which excluded
share-based compensation expenses, were US$4,748.5 million, a 56.9% increase from
US$3,027.4 million in the fiscal year
2020.
Cost of revenues grew by 39.5% to US$2,048.6 million from US$1,468.6 million in the 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 39.5% to US$2,046.8
million from US$1,467.5
million in the fiscal year 2020.
Selling and marketing expenses increased by 97.0% to
US$1,680.1 million from US$852.8 million in the fiscal year 2020.
Non-GAAP selling and marketing expenses, which excluded share-based
compensation expenses, increased by 94.8% to US$1,623.4 million from US$833.5 million in the fiscal year 2020. The
increase of selling and marketing expenses in the 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 40.6% to
US$1,117.3 million from US$795.0 million in the 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 39.2% to
US$970.8 million from US$697.4 million in the fiscal year 2020.
Total share-based compensation expenses allocated to the related
operating costs and expenses increased by 73.8% to US$204.9 million in the fiscal year 2021 from
US$117.9 million in fiscal year
2020.
Impairment loss on intangible assets and goodwill was
US$107.5 million for the fiscal year
2021, compared to US$29.0 million for
the fiscal year 2020. Impairment loss on intangible assets and
goodwill was mainly due to the decline in reporting units' fair
value.
Gross Profit
Gross profit grew by 35.6% to US$2,447.2
million from US$1,804.7
million in the fiscal year 2020.
Income/(loss) from Operations
Loss from operations was US$438.2
million in the fiscal year 2021, compared to income from
operations of US$137.4 million in the
prior year. Non-GAAP loss from operations, which excluded
share-based compensation expenses, was US$233.3 million for the fiscal year 2021,
compared to non-GAAP income from operations of US$255.4 million in the fiscal year 2020.
Other (expense)/Income
Other income was US$140.9 million
for the fiscal year 2021, primarily consisting of the value-added
tax and social security expense exemption offered by the government
during the COVID-19 outbreak. Other expense was US$95.3 million for the fiscal year 2020, mainly
related to loss from the fair value change of an equity security
with readily determinable fair value.
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was US$24.6 million for the fiscal year 2021,
compared to US$154.0 million for the
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 (expense)/Benefit
Income tax benefit was US$69.9
million in the fiscal year 2021, compared to US$69.3 million of income tax expense in the
fiscal year 2020.
Net (loss)/Income Attributable to TAL Education
Group
Net loss attributable to TAL was US$116.0
million in the fiscal year 2021, compared to net loss
attributable to TAL of US$110.2
million in the fiscal year 2020. Non-GAAP net income
attributable to TAL, which excluded share-based compensation
expenses, was US$89.0 million,
compared to Non-GAAP net income attributable to TAL of US$7.7 million in the fiscal year 2020.
Basic and Diluted Net (loss)/Income per ADS
Basic and diluted net loss per ADS were both US$0.19 in the fiscal year 2021. Non-GAAP basic
and Non-GAAP diluted net income per ADS, which excluded share-based
compensation expenses, were US$0.15
and US$0.14, respectively.
Cash Flow
Net cash flow provided by operating activities for the fiscal
year 2021 was US$954.7 million.
Capital expenditures for the fiscal year 2021 were US$245.0 million, compared to US$187.5 million in the fiscal year 2020. The
increase of capital expenditures was mainly due to the purchase of
fixed assets and leasehold improvement.
Business Outlook
Based on our current estimates, total net revenues for the first
quarter of fiscal year 2022 are expected to be between US$1,302.2 million and US$1,320.5 million, representing an increase of
43% to 45% on a year-over-year basis.
These estimates reflect the Company's current expectation, which
is subject to change.
Authorization of Share
Repurchase Plan
On April 19, 2021, TAL's board of directors authorized a
share repurchase plan under which the Company may repurchase up to
US$1.0 billion of the Company's
common shares over the next 12 months.
The Company's proposed repurchases may be made from time to time
on the open market at prevailing market prices, in privately
negotiated transactions, in block trades and/or through other
legally permissible means, depending on market conditions and in
accordance with applicable rules and regulations. The Company's
board of directors will review the share repurchase plan
periodically, and may authorize adjustment of its terms and size.
The Company plans to fund repurchases from its existing cash
balance.
Conference Call
The Company will host a conference call and live webcast to
discuss its financial results for the fourth fiscal quarter of
fiscal year 2021 ended February 28,
2021 at 8:00 a.m. Eastern Time
on April 22, 2021 (8:00 p.m. Beijing time on April
22, 2021).
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/5523728. It will
automatically direct you to the registration page of "TAL Education
Group Fourth 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
"5523728".
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 April 30, 2021, U.S. Eastern time (9:59 p.m. Beijing time on April
30, 2021).
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:
|
5523728
|
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 2022, 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 110 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@tal.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
February 28,
2021
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and
cash equivalents
|
$
1,873,866
|
|
$
3,242,953
|
Restricted
cash-current
|
28,084
|
|
1,758,937
|
Short-term
investments
|
345,457
|
|
2,694,555
|
Inventory
|
25,832
|
|
38,675
|
Amounts due
from related parties-current
|
3,642
|
|
2,964
|
Income tax
receivables
|
11,548
|
|
15,641
|
Prepaid
expenses and other current assets
|
207,352
|
|
403,110
|
Total current
assets
|
2,495,781
|
|
8,156,835
|
Restricted
cash-non-current
|
13,235
|
|
16,094
|
Property and
equipment, net
|
366,656
|
|
511,415
|
Deferred tax
assets
|
79,534
|
|
317,189
|
Rental
deposits
|
72,721
|
|
102,555
|
Intangible
assets, net
|
58,985
|
|
66,041
|
Land use
right, net
|
204,853
|
|
216,702
|
Goodwill
|
378,913
|
|
454,413
|
Long-term
investments
|
571,601
|
|
667,636
|
Long-term
prepayments and other non-current assets
|
85,275
|
|
57,694
|
Operating
lease right-of-use assets
|
1,243,692
|
|
1,545,735
|
Total
assets
|
$
5,571,246
|
|
$
12,112,309
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable
(including accounts payable of the
consolidated VIEs without recourse to TAL
Education
Group of 104,231 and 334,579 as of February 29,
2020 and
February 28, 2021, respectively)
|
$ 117,770
|
|
$ 353,778
|
Deferred
revenue-current (including deferred revenue-current of
the consolidated VIEs without recourse to TAL
Education
Group of 733,253 and 1,328,473 as of February 29,
2020
and February 28, 2021, respectively)
|
780,167
|
|
1,387,493
|
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 3,396 as
of
February 29, 2020 and February 28, 2021,
respectively)
|
4,361
|
|
3,488
|
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 750,204 as of February 29, 2020
and
February 28, 2021, respectively)
|
552,650
|
|
911,283
|
Income tax payable
(including income tax payable of the
consolidated VIEs without recourse to TAL Education
Group
of 43,233 and 51,037 as of February 29, 2020 and
February 28,
2021, respectively)
|
46,650
|
|
65,138
|
Current portion of
long-term debt (including current portion of
long-term debt of the consolidated VIEs without
recourse to
TAL Education Group of nil and nil as of February
29,
2020 and February 28,
2021, respectively)
|
-
|
|
270,000
|
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 349,547 as of February 29, 2020 and February 28,
2021,
respectively)
|
304,960
|
|
382,671
|
Total current
liabilities
|
1,806,558
|
|
3,373,851
|
Deferred
revenue-non-current (including deferred revenue-non-
current of the consolidated VIEs without recourse to
TAL
Education Group of 833 and 30,005 as of February 29,
2020
and February 28, 2021, respectively)
|
833
|
|
30,005
|
Deferred tax
liabilities (including deferred tax liabilities of the
consolidated VIEs without recourse to TAL Education
Group
of 7,197 and 10,109 as of February 29, 2020 and
February
28, 2021, respectively)
|
7,789
|
|
10,333
|
Bond payable
(including bond payable of the consolidated VIEs
without recourse to TAL Education Group of nil and nil
as of
February 29, 2020 and February 28, 2021,
respectively)
|
-
|
|
2,300,000
|
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 February 28, 2021,
respectively)
|
261,950
|
|
-
|
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 1,123,508 as of February 29, 2020
and
February 28, 2021, respectively)
|
949,919
|
|
1,193,564
|
Total
liabilities
|
3,027,049
|
|
6,907,753
|
|
|
|
|
Mezzanine
equity
|
|
|
|
Redeemable
non-controlling interests
|
-
|
|
1,775
|
Equity
|
|
|
|
Class A common
shares
|
133
|
|
148
|
Class B common
shares
|
67
|
|
67
|
Additional paid-in
capital
|
1,675,640
|
|
4,369,125
|
Statutory
reserve
|
82,712
|
|
121,285
|
Retained
earnings
|
786,097
|
|
624,883
|
Accumulated other
comprehensive (loss)/income
|
(28,913)
|
|
86,321
|
Total TAL
Education Group's equity
|
2,515,736
|
|
5,201,829
|
Noncontrolling
interest
|
28,461
|
|
952
|
Total
equity
|
2,544,197
|
|
5,202,781
|
Total liabilities,
mezzanine equity and equity
|
$
5,571,246
|
|
$
12,112,309
|
|
|
|
|
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
February 29/28,
|
|
For the Fiscal
Year Ended
February
29/28,
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
Net
revenues
|
$ 857,682
|
|
$
1,362,689
|
|
$
3,273,308
|
|
$
4,495,755
|
Cost of revenues
(note 1)
|
405,882
|
|
581,449
|
|
1,468,569
|
|
2,048,561
|
Gross
profit
|
451,800
|
|
781,240
|
|
1,804,739
|
|
2,447,194
|
Operating expenses
(note 1)
|
|
|
|
|
|
|
|
Selling and
marketing
|
243,204
|
|
660,452
|
|
852,808
|
|
1,680,050
|
General and
administrative
|
221,245
|
|
348,605
|
|
794,957
|
|
1,117,324
|
Impairment
loss on intangible
assets and goodwill
|
28,998
|
|
71,504
|
|
28,998
|
|
107,535
|
Total operating
expenses
|
493,447
|
|
1,080,561
|
|
1,676,763
|
|
2,904,909
|
Government
subsidies
|
391
|
|
2,111
|
|
9,467
|
|
19,491
|
(Loss)/income from
operations
|
(41,256)
|
|
(297,210)
|
|
137,443
|
|
(438,224)
|
Interest
income
|
19,430
|
|
35,167
|
|
72,991
|
|
114,232
|
Interest
expense
|
(3,857)
|
|
(7,568)
|
|
(11,820)
|
|
(16,946)
|
Other
(expense)/income
|
(4,679)
|
|
7,930
|
|
(95,297)
|
|
140,878
|
Impairment loss on
long-term
investments
|
(2,774)
|
|
(6,206)
|
|
(153,970)
|
|
(24,563)
|
Loss before income
tax
(expense)/benefit and
(loss)/income from equity
method investments
|
(33,136)
|
|
(267,887)
|
|
(50,653)
|
|
(224,623)
|
Income tax
(expense)/benefit
|
(63,592)
|
|
80,453
|
|
(69,328)
|
|
69,897
|
(Loss)/income from
equity
method investments
|
(1,775)
|
|
5,324
|
|
(7,670)
|
|
11,676
|
Net
loss
|
$ (98,503)
|
|
$
(182,110)
|
|
$
(127,651)
|
|
$
(143,050)
|
Add: Net loss
attributable to
noncontrolling interest
|
8,429
|
|
13,108
|
|
17,456
|
|
27,060
|
Total net loss
attributable to
TAL Education Group
|
$ (90,074)
|
|
$
(169,002)
|
|
$
(110,195)
|
|
$
(115,990)
|
Net loss per
common share
|
|
|
|
|
|
|
|
Basic
|
$ (0.45)
|
|
$ (0.80)
|
|
$ (0.56)
|
|
$ (0.57)
|
Diluted
|
(0.45)
|
|
(0.80)
|
|
(0.56)
|
|
(0.57)
|
Net loss per ADS
(note 2)
|
|
|
|
|
|
|
|
Basic
|
$ (0.15)
|
|
$ (0.27)
|
|
$ (0.19)
|
|
$ (0.19)
|
Diluted
|
(0.15)
|
|
(0.27)
|
|
(0.19)
|
|
(0.19)
|
Weighted average
shares used in
calculating net loss per
common share
|
|
|
|
|
|
|
|
Basic
|
199,095,944
|
|
212,209,608
|
|
198,184,370
|
|
203,603,391
|
Diluted
|
199,095,944
|
|
212,209,608
|
|
198,184,370
|
|
203,603,391
|
|
|
Note1: Share-based
compensation expenses are included in the operating costs and
expenses as follows:
|
|
|
For the Three
Months
|
|
For the Fiscal
Year
|
|
Ended February
29/28,
|
|
Ended February
29/28,
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
Cost of
revenues
|
$242
|
|
$645
|
|
$1,074
|
|
$1,803
|
Selling and marketing
expenses
|
6,405
|
|
24,965
|
|
19,356
|
|
56,609
|
General and
administrative expenses
|
26,217
|
|
54,728
|
|
97,513
|
|
146,533
|
Total
|
$32,864
|
|
$80,338
|
|
$117,943
|
|
$204,945
|
|
Note 2: Three ADSs
represent one Class A common Share.
|
TAL EDUCATION
GROUP
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
|
COMPREHENSIVE
LOSS
|
(In thousands of
U.S. dollars)
|
|
|
For the Three
Months Ended
February
29/28,
|
|
For the Fiscal
Year Ended
February
29/28,
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
Net
loss
|
$ (98,503)
|
|
$
(182,110)
|
|
$
(127,651)
|
|
$
(143,050)
|
Other
comprehensive
income/(loss), net of tax
|
5,703
|
|
28,664
|
|
(47,825)
|
|
116,498
|
Comprehensive
loss
|
(92,800)
|
|
(153,446)
|
|
(175,476)
|
|
(26,552)
|
Add: Comprehensive
income
attributable to noncontrolling
interest
|
8,236
|
|
12,924
|
|
19,321
|
|
25,796
|
Comprehensive
loss
attributable to TAL
Education Group
|
$ (84,564)
|
|
$
(140,522)
|
|
$
(156,155)
|
|
$ (756)
|
TAL EDUCATION
GROUP
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
|
CASH
FLOWS
|
(In thousands of
U.S. dollars)
|
|
|
For the Three
Months Ended
February
29/28,
|
|
For the Fiscal
Year
February
29/28,
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
Net cash (used
in)/provided by operating
activities
|
$
(383,456)
|
|
$
(626,510)
|
|
$ 855,850
|
|
$ 954,732
|
Net cash used in
investing activities
|
(68,361)
|
|
(1,935,202)
|
|
(338,815)
|
|
(2,641,469)
|
Net cash provided by
financing activities
|
4
|
|
3,302,301
|
|
131,231
|
|
4,794,813
|
Effect of exchange
rate changes
|
(4,869)
|
|
(2,701)
|
|
3,218
|
|
(5,277)
|
|
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and
restricted cash
|
(456,682)
|
|
737,888
|
|
651,484
|
|
3,102,799
|
Cash, cash
equivalents and restricted
cash at beginning of period
|
2,371,867
|
|
4,280,096
|
|
1,263,701
|
|
1,915,185
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted
cash at end of period
|
$
1,915,185
|
|
$
5,017,984
|
|
$
1,915,185
|
|
$
5,017,984
|
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 February
29/28,
|
|
For the Fiscal
Year
Ended February 29/28,
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$ 405,882
|
|
$ 581,449
|
|
$
1,468,569
|
|
$
2,048,561
|
Share-based
compensation expense
in cost of revenues
|
242
|
|
645
|
|
1,074
|
|
1,803
|
Non-GAAP cost of
revenues
|
405,640
|
|
580,804
|
|
1,467,495
|
|
2,046,758
|
|
|
|
|
|
|
|
|
Selling and
marketing expenses
|
243,204
|
|
660,452
|
|
852,808
|
|
1,680,050
|
Share-based
compensation expense
in selling and marketing expenses
|
6,405
|
|
24,965
|
|
19,356
|
|
56,609
|
Non-GAAP selling
and marketing
expenses
|
236,799
|
|
635,487
|
|
833,452
|
|
1,623,441
|
General and
administrative
expenses
|
221,245
|
|
348,605
|
|
794,957
|
|
1,117,324
|
Share-based
compensation expense
in general and administrative
expenses
|
26,217
|
|
54,728
|
|
97,513
|
|
146,533
|
Non-GAAP general
and
administrative expenses
|
195,028
|
|
293,877
|
|
697,444
|
|
970,791
|
|
|
|
|
|
|
|
|
Operating costs
and expenses
|
899,329
|
|
1,662,010
|
|
3,145,332
|
|
4,953,470
|
Share-based
compensation expense
in operating costs and expenses
|
32,864
|
|
80,338
|
|
117,943
|
|
204,945
|
Non-GAAP operating
costs and
expenses
|
866,465
|
|
1,581,672
|
|
3,027,389
|
|
4,748,525
|
|
|
|
|
|
|
|
|
(Loss)/income from
operations
|
(41,256)
|
|
(297,210)
|
|
137,443
|
|
(438,224)
|
Share based
compensation expenses
|
32,864
|
|
80,338
|
|
117,943
|
|
204,945
|
Non-GAAP
(loss)/income from
operations
|
(8,392)
|
|
(216,872)
|
|
255,386
|
|
(233,279)
|
|
|
|
|
|
|
|
|
Net loss
attributable to TAL
Education Group
|
(90,074)
|
|
(169,002)
|
|
(110,195)
|
|
(115,990)
|
Share based
compensation expenses
|
32,864
|
|
80,338
|
|
117,943
|
|
204,945
|
Non-GAAP net
(loss)/income
attributable to TAL Education
Group
|
$
(57,210)
|
|
$
(88,664)
|
|
$
7,748
|
|
$
88,955
|
Net loss per
ADS
|
|
Basic
|
$ (0.15)
|
|
$ (0.27)
|
|
$ (0.19)
|
|
$ (0.19)
|
Diluted
|
(0.15)
|
|
(0.27)
|
|
(0.19)
|
|
(0.19)
|
Non-GAAP Net
(loss)/ income per
ADS
|
|
|
|
|
|
|
|
Basic
|
$ (0.10)
|
|
$ (0.14)
|
|
$ 0.01
|
|
$ 0.15
|
Diluted
|
(0.10)
|
|
(0.14)
|
|
0.01
|
|
0.14
|
ADSs used in
calculating net loss
per ADS
|
|
|
|
|
|
|
|
Basic
|
597,287,832
|
|
636,628,824
|
|
594,553,110
|
|
610,810,173
|
Diluted
|
597,287,832
|
|
636,628,824
|
|
594,553,110
|
|
610,810,173
|
ADSs used in
calculating Non-
GAAP net (loss)/ income per ADS
|
|
|
|
|
|
|
|
Basic
|
597,287,832
|
|
636,628,824
|
|
594,553,110
|
|
610,810,173
|
Diluted
|
597,287,832
|
|
636,628,824
|
|
620,891,562
|
|
633,722,700
|
View original
content:http://www.prnewswire.com/news-releases/tal-education-group-announces-unaudited-financial-results-for-the-fourth-fiscal-quarter-and-the-fiscal-year-2021-301274537.html
SOURCE TAL Education Group