NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. Quarterly Net Revenues Increased by 23.2% Year-Over-Year
Quarterly Student Enrollments Increased by 36.9% Year-Over-Year
Quarterly Operating Income Increased by 39.7% Year-Over-Year
Fiscal Year Net Revenues Increased by 21.7% Year-Over-Year
Fiscal Year Student Enrollments Increased by 33.3% Year-Over-Year
Fiscal Year Operating Income Increased by 31.8% Year-Over-Year
BEIJING, July 25, 2017 /PRNewswire/ -- New Oriental Education and Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU), the largest provider of private educational services in China, today announced its unaudited financial results for the fourth fiscal quarter and fiscal year ended May 31, 2017.
Financial Highlights for the Fourth Fiscal Quarter Ended May 31, 2017
-- Total net revenues increased by 23.2% year-over-year to US$486.4 million
for the fourth fiscal quarter of 2017.
-- Operating income increased by 39.7% year-over-year to US$51.8 million
for the fourth fiscal quarter of 2017.
-- Net income attributable to New Oriental increased by 31.9%
year-over-year to US$55.4 million for the fourth fiscal quarter of 2017.
Key Financial Results
(in thousands US$, except per ADS(1) data) 4Q FY2017 4Q FY2016 % of change
----------------------------------------- --------- --------- -----------
Net revenues 486,353 394,865 23.2%
Operating income 51,836 37,093 39.7%
Non-GAAP operating income (2)(3) 60,808 40,725 49.3%
Net income attributable to New Oriental 55,416 42,016 31.9%
Non-GAAP net income attributable to New Oriental (2)(3) 64,388 45,648 41.1%
Net income per ADS attributable to New Oriental - basic 0.35 0.27 31.3%
Net income per ADS attributable to New Oriental - diluted 0.35 0.27 31.3%
Non-GAAP net income per ADS attributable to New Oriental 0.41 0.29 40.4%
- basic(3)(4)
Non-GAAP net income per ADS attributable to New Oriental 0.41 0.29 40.5%
- diluted(3)(4)
(in thousands US$, except per ADS(1) data) FY2017 FY2016 % of change
----------------------------------------- ------ ------ -----------
Net revenues 1,799,509 1,478,348 21.7%
Operating income 262,149 198,837 31.8%
Non-GAAP operating income(2)(3) 282,436 215,647 31.0%
Net income attributable to New Oriental 274,457 224,884 22.0%
Non-GAAP net income attributable to New Oriental(2)(3) 294,744 241,694 21.9%
Net income per ADS attributable to New Oriental - basic 1.74 1.43 21.4%
Net income per ADS attributable to New Oriental - diluted 1.74 1.43 21.6%
Non-GAAP net income per ADS attributable to New Oriental 1.87 1.54 21.4%
- basic(3)(4)
Non-GAAP net income per ADS attributable to New Oriental 1.87 1.54 21.5%
- diluted(3)(4)
(1) Each ADS represents one common share.
(2) GAAP represents Generally Accepted
Accounting Principles in the United
States of America.
(3) New Oriental provides net income
attributable to New Oriental,
operating income and net income per
ADS attributable to New Oriental on a
non-GAAP basis that excludes share-
based compensation expenses to provide
supplemental information regarding its
operating performance. For more
information on these non-GAAP
financial measures, please see the
section captioned "About Non-GAAP
Financial Measures" and the tables
captioned "Reconciliations of Non-
GAAP Measures to the Most Comparable
GAAP Measures" set forth at the end of
this release.
(4) The Non-GAAP net income per ADS is
computed using Non-GAAP net income
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, 2017
-- Total student enrollments in academic subjects tutoring and test
preparation courses increased by 36.9% year-over-year to approximately
1,420,300 for the fourth fiscal quarter of 2017.
-- The total number of schools and learning centers was 855 as of May 31,
2017, an increase of 107 compared to 748 as of May 31, 2016, and an
increase of 52 compared to 803 as of February 28, 2017. The total number
of schools was 77 as of May 31, 2017.
Michael Yu, New Oriental's Executive Chairman, commented, "We are pleased to close fiscal year 2017 with a set of solid financial results. In the fourth quarter, we recorded a top line growth of 23.2%, or 30.5% if computed in Renminbi. Student enrollments were up approximately 37% during this quarter, which was driven by the continued momentum of our K-12 after-school tutoring business with enrollment growth of approximately 51% year-over-year. For the full fiscal year, net revenues grew by 21.7%, or 29.1% if computed in Renminbi, with operating income up by 31.8% and net income up by 22%. K-12 after-school tutoring business, our key revenue driver, achieved approximately 44.2% increase in revenue if computed in Renminbi in fiscal year 2017, contributing 55% of total revenues. In particular, our customer retention rate and acquisition efficiency have consistently improved through our online and offline (O2O) integrated education system, which includes U-Can Visible Progress Teaching system and revamped POP Kids program. If computed in Renminbi, our POP Kids program achieved revenue growth of over 55% and enrollment growth of 49% for the fiscal year 2017. Meanwhile, our U-Can business recorded revenue growth of approximately 40% and enrollment growth of 45% for the fiscal year."
Chenggang Zhou, New Oriental's Chief Executive Officer, added, "During the fiscal year, we continue to focus firmly on executing our "Optimize the Market" strategy. In order to maintain a healthy balance between top line and bottom line growth, we moderately accelerated our capacity expansion in some cities with strong growing momentum supported by efficient operations in the fourth quarter of fiscal year 2017. During the quarter, we added a net of 47 learning centers in around 30 existing cities, opened two new schools and a new learning center in the city of Zhangzhou and Nanyang, and rolled out two dual-teacher model schools in the city of Anyang and Handan. For fiscal year 2017, we opened a total of four new schools, three new learning centers and six dual-teacher model schools in ten new cities and added a net of 93 learning centers and one kindergarten in the existing cities. Furthermore, we achieved impactful progress in building our O2O integrated education ecosystem. The O2O system for the K-12 business became a major driver of our accelerated revenue and enrollment growth in fiscal year 2017. We are in the process of launching the O2O standardized teaching system for our overseas test preparation business, such as IELTS, TOEFL and SAT programs, in some of the large cities in China. Lastly, our pure online education platform, Koolearn.com, recorded revenue growth of approximately 31%, or 39% if computed in Renminbi for the whole fiscal year, with registered users up by over 29% and paid users up by approximately 56%."
Stephen Zhihui Yang, New Oriental's Chief Financial Officer, commented, "The encouraging financial performance of this fiscal year was supported by our continued efforts in improving utilization of facilities and enhancing cost control. For fiscal year 2017, operating margin increased 120 basis points. Moving forward into fiscal year 2018, we will continue to execute the "Optimize the Market" strategy to maintain strong growth momentum. In particular, we aim to enter into two to four new cities and add approximately 10-15% new teaching facilitates mainly for our K-12 after-school tutoring business in existing cities. In addition, we will continue to expand our businesses into remote areas in China by rolling out our dual-teacher model schools. We are confident in building sustainable long-term value for our customers and shareholders."
Declaration of Special Cash Dividend
New Oriental's board of directors has declared a special cash dividend in the amount of US$0.45 per ADS/common share. The cash dividend will be paid on October 6, 2017 to shareholders of record at the close of business on September 6, 2017. The ex-dividend date will be September 1, 2017. The aggregate amount of cash dividends to be paid is approximately US$70.0 million, which will be funded by surplus cash on the Company's balance sheet.
Financial Results for the Fourth Fiscal Quarter Ended May 31, 2017
Net Revenues
For the fourth fiscal quarter of 2017, New Oriental reported net revenues of US$486.4 million, representing a 23.2% increase year-over-year. Net revenues from educational programs and services for the fourth fiscal quarter were US$407.7 million, representing a 26.5% increase year-over-year. The growth was mainly driven by increases in student enrollments in K-12 after-school tutoring courses.
Total student enrollments in academic subjects tutoring and test preparation courses in the fourth fiscal quarter of 2017 increased by 36.9% year-over-year to approximately 1,420,300.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$434.5 million, representing a 20.2% increase year-over-year. Non-GAAP operating costs and expenses for the quarter, which exclude share-based compensation expenses, were US$425.5 million, representing an 18.9% increase year-over-year.
-- Cost of revenues increased by 21.9% year-over-year to US$199.3 million,
primarily due to increases in teachers' compensation for more teaching
hours.
-- Selling and marketing expenses increased by 11.7% year-over-year to
US$66.3 million, primarily due to increases in brand promotion expenses
and selling and marketing staff's compensation.
-- General and administrative expenses for the quarter increased by 21.8%
year-over-year to US$169.0 million. Non-GAAP general and administrative
expenses, which exclude share-based compensation expenses, were US$160.0
million, representing an 18.4% increase year-over-year, primarily due to
increased headcount as the Company expanded its network of schools and
learning centers by about 14% year-over-year.
Total share-based compensation expenses, which were allocated to related operating costs and expenses, increased by 147.0% to US$9.0 million in the fourth fiscal quarter of 2017.
Operating Income and Operating Margin
Operating income was US$51.8 million, a 39.7% increase from US$37.1 million in the same period of the prior fiscal year. Non-GAAP income from operations for the quarter was US$60.8 million, compared to non-GAAP income from operations of US$40.7 million in the same period of the prior fiscal year.
Operating margin for the quarter was 10.7%, compared to 9.4% in the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses, for the quarter was 12.5%, compared to 10.3% in the same period of the prior fiscal year.
Net Income and EPS
Net income attributable to New Oriental for the quarter was US$55.4 million, representing a 31.9% increase from the same period of the prior fiscal year. Basic and diluted earnings per ADS attributable to New Oriental were US$0.35 and US$0.35, respectively.
Non-GAAP Net Income and Non-GAAP EPS
Non-GAAP net income attributable to New Oriental for the quarter was US$64.4 million, representing a 41.1% increase from the same period of the prior fiscal year. Non-GAAP basic and diluted earnings per ADS attributable to New Oriental were US$0.41 and US$0.41, respectively.
Cash Flows
Net operating cash flow for the fourth fiscal quarter of 2017 was approximately US$211.2 million. Capital expenditures for the quarter were US$26.5 million, which were primarily attributable to the opening of four new schools and 70 learning centers and renovations at existing learning centers.
Balance Sheets
As of May 31, 2017, New Oriental had cash and cash equivalents of US$641.0 million, as compared to US$535.9 million as of February 28, 2017. In addition, the Company had US$195.1 million in term deposits, US$1,312.9 million in short-term investments and US$16.7 million in long-term investments due within one year consisting of trusts guaranteed by a bank and expected to mature within one year from May 31, 2017.
New Oriental's deferred revenue balance, which is cash collected from registered students for courses and recognized proportionally as revenue as the instructions are delivered, at the end of the fourth quarter of fiscal year 2017 was US$866.6 million, an increase of 34.0%, compared to US$646.9 million at the end of the fourth quarter of fiscal year 2016.
Financial Results for the Fiscal Year Ended May 31, 2017
For the fiscal year 2017 ended May 31, 2017, New Oriental reported net revenues of US$1,799.5 million, representing a 21.7% increase year-over-year.
Total student enrollments in academic subjects tutoring and test preparation courses in the fiscal year 2017 increased by 33.3% to approximately 4,858,600.
Income from operations for the fiscal year 2017 was US$262.1 million, representing a 31.8% increase year-over-year. Non-GAAP income from operations for the fiscal year 2017 was US$282.4 million, representing a 31.0% increase year-over-year.
Operating margin for the fiscal year 2017 was 14.6%, compared to 13.4% for the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses for the fiscal year 2017, was 15.7%, compared to 14.6% for the same period of the prior fiscal year.
Net income attributable to New Oriental for the fiscal year 2017 was US$274.5 million, representing a 22.0% increase year-over-year. Basic and diluted net income per ADS attributable to New Oriental for the fiscal year 2017 amounted to US$1.74 and US$1.74, respectively.
Non-GAAP net income attributable to New Oriental for the fiscal year 2017 was US$294.7 million, representing a 21.9% increase year-over-year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental for the fiscal year 2017 amounted to US$1.87 and US$1.87, respectively.
Outlook for First Quarter of Fiscal Year 2018
New Oriental expects total net revenues in the first quarter of fiscal year 2018 (June 1, 2017 to August 31, 2017) to be in the range of US$626.5 million to US$647.3 million, representing year-over-year growth in the range of 17% to 21%.
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 24% for the first quarter of fiscal year 2018.
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 25, 2017, U.S. Eastern Time (8 PM on July 25, 2017, Beijing/Hong Kong Time).
Dial-in details for the earnings conference call are as follows:
US: +1-845-675-0437
Hong Kong: +852-3018-6771
UK: +44-20-3621-4779
Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "New Oriental Earnings Call."
A replay of the conference call may be accessed by phone at the following number until August 2, 2017:
International: +61-2-8199-0299
Passcode: 38953942
Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org.
About New Oriental
New Oriental is the largest provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence. New Oriental offers a wide range of educational programs, services and products consisting primarily of English and other foreign language training, test preparation courses for major admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education. New Oriental's ADSs, each of which represents one common share, currently trade on the New York Stock Exchange under the symbol ''EDU.''
For more information about New Oriental, please visit http://www.neworiental.org/english/.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for the third quarter of fiscal year 2017, quotations from management in this announcement, as well as New Oriental's strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our ability to attract students without a significant decrease in course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and enhance our "New Oriental" brand; our ability to effectively and efficiently manage the expansion of our school network and successfully execute our growth strategy; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector in China; changes in our revenues and certain cost or expense items as a percentage of our revenues; the expected growth of the Chinese private education market; Chinese governmental policies relating to private educational services and providers of such services; health epidemics and other outbreaks in China; and general economic conditions in China. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement New Oriental's consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non-GAAP financial measures by the SEC: net income excluding share-based compensation expenses, operating income excluding share-based compensation expenses, operating costs 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. 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 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 computes its non-GAAP financial measures using the same consistent method from quarter to quarter. 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 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:
In China:
Ms. Cara O'Brien
FTI Consulting
Tel: +852-3768-4537
Email: cara.obrien@fticonsulting.com
Ms. Sisi Zhao
New Oriental Education and Technology Group Inc.
Tel: +86-10-6260-5568
Email: zhaosisi@xdf.cn
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
As of May 31 As of February 28
2017 2017
---- ----
(Unaudited) (Unaudited)
USD USD
--- ---
ASSETS:
Current assets:
Cash and cash equivalents 641,018 535,929
Restricted cash, current 44 56
Term deposits 195,085 183,082
Short term investments 1,312,942 1,251,558
Accounts receivable, net 3,343 3,162
Inventory 31,742 28,168
Prepaid expenses and other current assets 119,397 118,916
Amounts due from related parties, current 5,948 5,537
Long term investments due within one year 16,743 -
------ ---
Total current assets 2,326,262 2,126,408
Property, plant and equipment, net 282,800 259,446
Land use rights, net 3,668 3,664
Amounts due from related parties, non-current 1,748 1,819
Deferred tax assets, non-current 28,858 22,932
Long term deposit 24,023 21,505
Long term prepaid rent 849 356
Restricted cash, non-current 3,608 3,679
Intangible assets 4,005 4,347
Goodwill 14,083 15,634
Long term investments 217,259 195,397
Other non-current assets 17,816 4,223
Total assets 2,924,979 2,659,410
========= =========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable (including accounts payable of the consolidated 24,258 21,416
VIE without recourse to New Oriental of US$21,382 and
US$24,138 as of February 28, 2017 and May 31, 2017,
respectively)
Accrued expenses and other current liabilities (including accrued 260,700 220,515
expenses and other current liabilities of the consolidated VIE
without recourse to New Oriental of US$196,141 and
US$238,864 as of February 28, 2017 and May 31, 2017,
respectively)
Income taxes payable (including income tax payable of the 51,045 43,460
consolidated VIE without recourse to New Oriental of US$39,085
and US$40,306 as of February 28, 2017 and May 31, 2017,
respectively)
Amounts due to related parties (including amounts due to related 48 49
parties of the consolidated VIE without recourse to New Oriental
of US$49 and US$48 as of February 28, 2017 and May 31, 2017,
respectively)
Deferred revenue (including deferred revenue of the consolidated 866,630 760,521
VIE without recourse to New Oriental of US$755,623 and
US$833,932 as of February 28, 2017 and May 31, 2017,
respectively)
Total current liabilities 1,202,681 1,045,961
Deferred tax liabilities (including deferred tax liabilities of the 2,220 2,311
consolidated VIE without recourse to New Oriental of US$2,262
and US$2,174 as of February 28, 2017 and May 31, 2017,
respectively)
Total long-term liabilities 2,220 2,311
Total liabilities 1,204,901 1,048,272
========= =========
Noncontrolling interests 39,130 36,810
Total New Oriental Education & Technology Group Inc. 1,680,948 1,574,328
shareholders' equity
Total shareholders' equity 1,720,078 1,611,138
Total liabilities and shareholders' equity 2,924,979 2,659,410
========= =========
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
---------------------------------
2017 2016
---- ----
(Unaudited) (Unaudited)
USD USD
--- ---
Net Revenues:
Educational programs and services 407,657 322,212
Books and others 78,696 72,653
Total net revenues 486,353 394,865
------- -------
Operating costs and expenses (note 1):
Cost of revenues 199,257 163,433
Selling and marketing 66,307 59,386
General and administrative 168,953 138,713
------- -------
Total operating costs and expenses 434,517 361,532
Gain on disposal of subsidiary - 3,760
Operating Income 51,836 37,093
------ ------
Other income, net 18,879 16,827
Provision for income taxes (14,460) (10,622)
Loss from equity method investments (346) (1,204)
---- ------
Net income 55,909 42,094
Net (gain) attributable to the noncontrolling interests (493) (78)
Net income attributable to New Oriental Education & 55,416 42,016
Technology Group Inc.
---
Net income per share attributable to New Oriental- 0.35 0.27
Basic
Net income per share attributable to New Oriental- 0.35 0.27
Diluted
Net income per ADS attributable to New Oriental- 0.35 0.27
Basic (note 2)
Net income per ADS attributable to New Oriental- 0.35 0.27
Diluted (note 2)
Other comprehensive income, net of tax 36,102 15,675
Comprehensive income 92,011 57,769
Comprehensive income attributable to New Oriental 91,864 56,750
Education & Technology Group Inc.
===
Notes:
Note 1: Share-based compensation expenses (in thousands) are included in the
operating costs and expenses as follows:
For the Three Months Ended May 31
---------------------------------
2017 2016
---- ----
(Unaudited) (Unaudited)
USD USD
--- ---
General and administrative 8,972 3,632
Total 8,972 3,632
===== =====
Note 2: Each ADS represents one common share.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
(In thousands except for per share and per ADS amounts)
For the Three Months Ended May 31
---------------------------------
2017 2016
---- ----
(Unaudited) (Unaudited)
USD USD
--- ---
General and administrative expenses 168,953 138,713
Share-based compensation expense in general and 8,972 3,632
administrative expenses
---
Non-GAAP general and administrative 159,981 135,081
expenses
Total operating costs and expenses 434,517 361,532
Share-based compensation expenses 8,972 3,632
----- -----
Non-GAAP operating costs and expenses 425,545 357,900
Operating income 51,836 37,093
Share-based compensation expenses 8,972 3,632
Non-GAAP operating income 60,808 40,725
Operating margin 10.7% 9.4%
Non-GAAP operating margin 12.5% 10.3%
Net income attributable to New Oriental 55,416 42,016
Share-based compensation expenses 8,972 3,632
----- -----
Non-GAAP net income 64,388 45,648
Net income per ADS attributable to New 0.35 0.27
Oriental- Basic (note 2)
Net income per ADS attributable to New 0.35 0.27
Oriental- Diluted (note 2)
Non-GAAP net income per ADS attributable 0.41 0.29
to New Oriental - Basic (note 2)
Non-GAAP net income per ADS attributable 0.41 0.29
to New Oriental - Diluted (note 2)
Weighted average shares used in calculating 157,679,354 156,963,155
basic net income per ADS (note 2)
Weighted average shares used in calculating 158,211,421 157,536,118
diluted net income per ADS (note 2)
Non-GAAP income per share - basic 0.41 0.29
Non-GAAP income per share - diluted 0.41 0.29
Note 2: Each ADS represents one common share.
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
-------------------------
2017 2016
---- ----
(Unaudited) (Unaudited)
USD USD
--- ---
Net Revenues:
Educational programs and services 1,608,954 1,309,339
Books and others 190,555 169,009
Total net revenues 1,799,509 1,478,348
--------- ---------
Operating costs and expenses (note 1):
Cost of revenues 749,586 614,364
Selling and marketing 232,826 197,897
General and administrative 554,948 471,010
Total operating costs and expenses 1,537,360 1,283,271
--------- ---------
Gain on disposal of a subsidiary - 3,760
Operating income 262,149 198,837
------- -------
Other income, net 68,560 68,447
Provision for income taxes (50,624) (37,531)
Loss from equity method investments (3,289) (4,425)
------ ------
Net income 276,796 225,328
Net (gain) attributable to the noncontrolling interests (2,339) (444)
Net income attributable to New Oriental Education 274,457 224,884
& Technology Group Inc.
---
Net income per share attributable to New Oriental- 1.74 1.43
Basic
Net income per share attributable to New Oriental- 1.74 1.43
Diluted
Net income per ADS attributable to New Oriental- 1.74 1.43
Basic (note 2)
Net income per ADS attributable to New Oriental- 1.74 1.43
Diluted (note 2)
Other comprehensive loss, net of tax (22,712) (35,945)
Comprehensive income 254,084 189,383
Comprehensive income attributable to New Oriental 250,670 188,327
Education & Technology Group Inc.
===
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
-------------------------
2017 2016
---- ----
(Unaudited) (Unaudited)
USD USD
--- ---
General and administrative 20,287 16,810
Total 20,287 16,810
====== ======
Note 2: Each ADS represents one common share.
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
-------------------------
2017 2016
---- ----
(Unaudited) (Unaudited)
USD USD
--- ---
General and administrative expenses 554,948 471,010
Share-based compensation expense in 20,287 16,810
general and administrative expenses
---
Non-GAAP general and administrative 534,661 454,200
expenses
Total operating costs and expenses 1,537,360 1,283,271
Share-based compensation expenses 20,287 16,810
------ ------
Non-GAAP operating costs and 1,517,073 1,266,461
expenses
Operating income 262,149 198,837
Share-based compensation expenses 20,287 16,810
------ ------
Non-GAAP operating income 282,436 215,647
Operating margin 14.6% 13.4%
Non-GAAP operating margin 15.7% 14.6%
Net income attributable to New Oriental 274,457 224,884
Share-based compensation expenses 20,287 16,810
------ ------
Non-GAAP net income 294,744 241,694
Net income per ADS attributable to 1.74 1.43
New Oriental- Basic (note 2)
Net income per ADS attributable to 1.74 1.43
New Oriental- Diluted (note 2)
Non-GAAP net income per ADS 1.87 1.54
attributable to New Oriental - Basic
(note 2)
Non-GAAP net income per ADS 1.87 1.54
attributable to New Oriental - Diluted
(note 2)
Weighted average shares used in 157,551,320 156,782,439
calculating basic net income per ADS
(note 2)
Weighted average shares used in 157,986,394 157,391,686
calculating diluted net income per ADS
(note 2)
Non-GAAP income per share - basic 1.87 1.54
Non-GAAP income per share - diluted 1.87 1.54
Note 2: Each ADS represents one common share.
View original content:http://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-fourth-fiscal-quarter-and-fiscal-year-ended-may-31-2017-300493388.html
SOURCE New Oriental Education and Technology Group Inc.
