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New Oriental Announces Unaudited Financial Results for the Fiscal Quarter and Fiscal Year Ended May 31, 2012
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Highlights for the Fourth Fiscal Quarter Ended
- Total net revenues increased by 40.7% year-over-year to
US$193.3 million fromUS$137.4 million in the same period of the prior fiscal year. - Net income attributable to New Oriental increased by 13.6% year-over-year to
US$16.3 million fromUS$14.3 million in the same period of the prior fiscal year. - Non-GAAP net income attributable to New Oriental, which excludes share-based compensation expenses, increased by 23.1% year-over-year to
US$23.7 million fromUS$19.2 million in the same period of the prior fiscal year. - Income from operations decreased by 9.4% year-over-year to
US$9.4 million fromUS$10.4 million in the same period of the prior fiscal year. - Non-GAAP income from operations, which excludes share-based compensation expenses, increased by 10.0% year-over-year to
US$16.9 million fromUS$15.4 million in the same period of the prior fiscal year. - Basic and diluted net income attributable to New Oriental per ADS were
US$0.10 andUS$0.10 , respectively. Non-GAAP basic and diluted net income per ADS, which excludes share-based compensation expenses, wereUS$0.15 andUS$0.15 , respectively. Each ADS represents one common share of the Company. - Total student enrollments in academic subjects tutoring and test preparation courses increased by 7.7% year-over-year to approximately 527,000 from approximately 489,100 in the same period of the prior fiscal year.
Highlights for the Fiscal Year Ended
- Total net revenues for the fiscal year increased by 38.3% year-over-year to
US$771.7 million fromUS$557.9 million . - Net income attributable to New Oriental increased by 30.4% year-over-year to
US$132.7 million fromUS$101.8 million . - Non-GAAP net income attributable to New Oriental, which excludes share-based compensation expenses, increased by 32.5% year-over-year to
US$156.8 million fromUS$118.4 million . - Income from operations increased by 22.3% year-over-year to
US$116.8 million fromUS$95.5 million . - Non-GAAP income from operations, which excludes share-based compensation expenses, increased by 25.7% year-over-year to
US$140.9 million fromUS$112.1 million . - Basic and diluted net income attributable to New Oriental per ADS were
US$0.86 andUS$0.85 , respectively. Non-GAAP basic and diluted earnings per ADS, which excludes share-based compensation expenses, wereUS$1.01 andUS$1.00 , respectively. Each ADS represents one common share of the Company. - Total student enrollments in academic subjects tutoring and test preparation courses increased by 15.0% year-over-year to approximately 2,402,400 from approximately 2,089,600 in the prior fiscal year.
- The total number of schools and learning centers increased to 664 as of
May 31, 2012 , up from 487 as ofMay 31, 2011 . The total number of schools was 55 as ofMay 31, 2012 . The number of learning centers increased by 56 in the fourth quarter to 609 as ofMay 31, 2012 , up from 553 as ofFebruary 29, 2012 .
Financial and Student Enrollments Summary – Fourth Fiscal Quarter and Fiscal Year 2012 (Unaudited)
(in US$ thousands, except per ADS data and student enrollments)
Q4 of FY2012 |
Q4 of FY2011 |
Pct. Change |
|
Net revenues |
193,288 |
137,386 |
40.7% |
Net income attributable to New Oriental |
16,250 |
14,303 |
13.6% |
Non-GAAP net income attributable to New Oriental (1) |
23,701 |
19,247 |
23.1% |
Income from operations |
9,443 |
10,421 |
-9.4% |
Non-GAAP income from operations(1) |
16,894 |
15,365 |
10.0% |
Net income per ADS attributable to New Oriental - basic (2) |
0.10 |
0.09 |
12.8% |
Net income per ADS attributable to New Oriental - diluted (2) |
0.10 |
0.09 |
13.2% |
Non-GAAP net income per ADS attributable to New Oriental - basic (1)(2) |
0.15 |
0.13 |
22.3% |
Non-GAAP net income per ADS attributable to New Oriental - diluted (1)(2) |
0.15 |
0.12 |
22.7% |
Total student enrollments in academic subjects tutoring and test preparation courses |
527,000 |
489,100 |
7.7% |
FY2012 |
FY2011 |
Pct. Change |
|
Net revenues |
771,718 |
557,872 |
38.3% |
Net income attributable to New Oriental |
132,688 |
101,774 |
30.4% |
Non-GAAP net income attributable to New Oriental (1) |
156,813 |
118,356 |
32.5% |
Income from operations |
116,797 |
95,501 |
22.3% |
Non-GAAP income from operations(1) |
140,922 |
112,083 |
25.7% |
Net income per ADS attributable to New Oriental - basic (2) |
0.86 |
0.66 |
29.2% |
Net income per ADS attributable to New Oriental - diluted (2) |
0.85 |
0.65 |
29.7% |
Non-GAAP net income per ADS attributable to New Oriental - basic (1)(2) |
1.01 |
0.77 |
31.3% |
Non-GAAP net income per ADS attributable to New Oriental - diluted (1)(2) |
1.00 |
0.76 |
31.8% |
Total student enrollments in academic subjects tutoring and test preparation courses |
2,402,400 |
2,089,600 |
15.0% |
- New Oriental provides non-GAAP net income attributable to New Oriental, non-GAAP operating income, and non-GAAP net income per ADS attributable to New Oriental that exclude share-based compensation expenses to reflect meaningful supplemental information regarding its operating performance. These non-GAAP figures for fiscal year 2011 and fourth fiscal quarter of 2011 also exclude disposal loss. 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.
- Each ADS represents one common share.
Mr. Yu continued, "During this quarter, we continued to execute on our plan for rapid expansion by adding another 56 new learning centers. Our total number of schools and learning centers increased from 487 as of the end of the last fiscal year to 664 as of the end of fiscal year 2012, representing a net addition of 177 for the fiscal year. Our total office and classroom space increased by more than 200,000 square meters in fiscal year 2012. In the quarters ahead, we will continue to add learning centers, albeit primarily smaller ones, particularly in the 48 cities outside of
"Despite this heavy investment in our business, we still achieved our target of 30% growth on both the top and bottom lines in fiscal year 2012. However, non-GAAP operating margin declined to 18.3% in fiscal year 2012 from 20.1% in fiscal year 2011. In the coming fiscal year, we plan to carefully manage our facility and staff expansion, with a focus on balancing business growth with operational efficiency and profitability. By building more small-sized learning centers in existing cities, we will ensure that total office and classroom space increases at a lower rate compared to fiscal year 2012. We are confident that New Oriental's market leadership position combined with strong execution will ensure healthy growth and profitability in the long term."
SEC Investigation
On
Financial Results for the Fourth Fiscal Quarter Ended
For the fourth fiscal quarter of 2012, New Oriental reported net revenues of
Net revenues from educational programs and services for the fourth fiscal quarter were
Operating costs and expenses for the quarter were
Cost of revenues increased by 38.0% year-over-year to
Selling and marketing expenses increased by 50.9% year-over-year to
General and administrative expenses for the quarter increased by 55.0% year-over-year to
Total share-based compensation expenses, which were allocated to related operating costs and expenses, increased by 118.7% to
Income from operations for the quarter was
Operating margin for the quarter was 4.9%, compared to 7.6% in the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses, for the quarter was 8.7%, compared to 11.2% in the same period of the prior fiscal year.
Other income for the quarter increased by 82.4% year-over-year to
Net income attributable to New Oriental for the quarter was
Non-GAAP net income attributable to New Oriental for the quarter was
Capital expenditures for the quarter were
As of
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 2012 was
Financial Results for the Fiscal Year Ended
For the fiscal year ended
Net revenues from educational programs and services for the fiscal year ended
Total student enrollments in academic subjects tutoring and test preparation courses for the fiscal year ended
Income from operations for the fiscal year ended
Operating margin for the fiscal year ended
Net income attributable to New Oriental for the fiscal year ended
Non-GAAP net income attributable to New Oriental, which excludes share-based compensation expenses, for the fiscal year ended
Outlook for First Quarter of Fiscal Year 2013
New Oriental expects its total net revenues in the first quarter of fiscal year 2013 (
Conference Call Information
New Oriental's management will host an earnings conference call at
Dial-in details for the earnings conference call are as follows:
US: |
+1-718-354-1231 |
Hong Kong: |
+852-2475-0994 |
UK: |
+44-20-3059-8139 |
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
International: |
+61-2-8235-5000 |
Passcode: |
95176615 |
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
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," "confidence" and similar statements. Among other things, the outlook for the first quarter of fiscal year 2013 and 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
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
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 except that there was no disposal loss in fiscal year 2012 and the fourth fiscal quarter ended
Contacts
For investor and media inquiries, please contact:
In
Ms.
Tel: +86-10-6260-5568
Email: zhaosisi@xdf.cn
Mr.
Tel: +86-10-5960-8600
Email: mreidy@brunswickgroup.com
In the U.S.:
Ms.
Tel: +1-212-333-3810
Email: czheng@brunswickgroup.com
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
(In thousands) |
|||
As of May 31 |
As of February 29 |
||
2012 |
2012 |
||
(Unaudited) |
(Unaudited) |
||
USD |
USD |
||
ASSETS: |
|||
Current assets: |
|||
Cash and cash equivalents |
428,261 |
407,950 |
|
Restricted cash |
3,591 |
2,918 |
|
Term deposits |
50,612 |
49,364 |
|
Short term investment |
321,182 |
300,433 |
|
Accounts receivable, net |
3,794 |
3,287 |
|
Inventory |
20,074 |
19,295 |
|
Deferred tax assets-Current |
7,316 |
5,479 |
|
Prepaid expenses and other current assets |
63,825 |
52,168 |
|
Total current assets |
898,655 |
840,894 |
|
Property, plant and equipment, net |
204,342 |
187,231 |
|
Land use right, net |
3,476 |
3,539 |
|
Amounts due from related parties |
1,449 |
- |
|
Deferred tax assets |
1,238 |
1,518 |
|
Long term deposit |
12,819 |
21,329 |
|
Long term prepaid rent |
2,205 |
2,132 |
|
Intangible assets |
833 |
851 |
|
Goodwill |
1,798 |
1,820 |
|
Long term investment |
2,002 |
2,002 |
|
Total assets |
1,128,817 |
1,061,316 |
|
LIABILITIES AND EQUITY |
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Current liabilities: |
|||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to New Oriental of US$ 9,171 and US$ 8,943 as of February 29, 2012 and May 31, 2012, respectively) |
8,943 |
9,330 |
|
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to New Oriental of US$ 66,952 and US$ 88,681 as of February 29, 2012 and May 31, 2012, respectively) |
99,773 |
78,199 |
|
Dividend payable (including dividend payable of the consolidated VIEs without recourse to New Oriental of nil and nil as of February 29, 2012 and May 31, 2012, respectively) |
50,000 |
- |
|
Income tax payable (including income tax payable of the consolidated VIEs without recourse to New Oriental of US$ 9,309 and US$ 8,979 as of February 29, 2012 and May 31, 2012, respectively) |
10,012 |
10,817 |
|
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to New Oriental of US$ nil and US$ 164 as of February 29, 2012 and May 31, 2012, respectively) |
164 |
- |
|
Deferred revenue (including deferred revenue of the consolidated VIEs without recourse to New Oriental of US$ 237,524 and US$ 266,814 as of February 29, 2012 and May 31, 2012, respectively) |
269,411 |
239,836 |
|
Total current liabilities |
438,303 |
338,182 |
|
Deferred tax liabilities |
112 |
117 |
|
Total long-term liabilities |
112 |
117 |
|
Total liabilities |
438,415 |
338,299 |
|
Total shareholder's equity |
690,402 |
723,017 |
|
Total liabilities and shareholder's equity |
1,128,817 |
1,061,316 |
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||
(In thousands except for per share and per ADS amounts) |
|||
For the Three Months Ended May 31 |
|||
2012 |
2011 |
||
(Unaudited) |
(Unaudited) |
||
USD |
USD |
||
Net Revenues: |
|||
Educational Programs and services |
165,305 |
120,419 |
|
Books and others |
27,983 |
16,967 |
|
Total net revenues |
193,288 |
137,386 |
|
Operating costs and expenses (note 1): |
|||
Cost of revenues |
78,242 |
56,691 |
|
Selling and marketing |
34,032 |
22,550 |
|
General and administrative |
71,571 |
46,187 |
|
Disposal loss |
- |
1,537 |
|
Total operating costs and expenses |
183,845 |
126,965 |
|
Operating income |
9,443 |
10,421 |
|
Other income, net |
8,053 |
4,414 |
|
Benefits (Provision) for income taxes |
(1,246) |
(532) |
|
Net income |
16,250 |
14,303 |
|
Less: Net income attributable to the noncontrolling interests |
- |
- |
|
Net income attributable to New Oriental Education & Technology Group Inc. |
16,250 |
14,303 |
|
Net income per share attributable to New Oriental-Basic |
0.10 |
0.09 |
|
Net income per share attributable to New Oriental-Diluted |
0.10 |
0.09 |
|
Net income per ADS attributable to New Oriental-Basic (note 2) |
0.10 |
0.09 |
|
Net income per ADS attributable to New Oriental-Diluted (note 2) |
0.10 |
0.09 |
Notes: |
|||||
Note 1: Share-based compensation expenses (in thousands) are included in |
|||||
For the Three Months Ended May 31 |
|||||
2012 |
2011 |
||||
(Unaudited) |
(Unaudited) |
||||
USD |
USD |
||||
Cost of revenues |
- |
225 |
|||
Selling and marketing |
- |
- |
|||
General and administrative |
7,451 |
3,182 |
|||
Total |
7,451 |
3,407 |
|||
Note 2: Each ADS represents one common shares. |
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. |
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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 |
|||||
2012 |
2011 |
||||
(Unaudited) |
(Unaudited) |
||||
USD |
USD |
||||
General and administrative expenses |
71,571 |
46,187 |
|||
Share-based compensation expense in |
7,451 |
3,182 |
|||
Non-GAAP general and administrative expenses |
64,120 |
43,005 |
|||
Total operating costs and expenses |
183,845 |
126,965 |
|||
Share-based compensation expenses |
7,451 |
3,407 |
|||
Disposal loss |
- |
1,537 |
|||
Non-GAAP operating costs and expenses |
176,394 |
122,021 |
|||
Operating income |
9,443 |
10,421 |
|||
Share-based compensation expenses |
7,451 |
3,407 |
|||
Disposal loss |
- |
1,537 |
|||
Non-GAAP operating income |
16,894 |
15,365 |
|||
Operating margin |
4.9% |
7.6% |
|||
Non-GAAP operating margin |
8.7% |
11.2% |
|||
Net income attributable to New Oriental |
16,250 |
14,303 |
|||
Share-based compensation expense |
7,451 |
3,407 |
|||
Disposal loss |
- |
1,537 |
|||
Non-GAAP net income |
23,701 |
19,247 |
|||
Net income per ADS attributable to New |
0.10 |
0.09 |
|||
Net income per ADS attributable to New |
0.10 |
0.09 |
|||
Non-GAAP net income per ADS attributable to New |
0.15 |
0.13 |
|||
Non-GAAP net income per ADS attributable to New |
0.15 |
0.12 |
|||
Weighted average shares used in calculating basic net income per ADS (note 1) |
154,973,651 |
153,856,715 |
|||
Weighted average shares used in calculating diluted net income per ADS (note 1) |
157,035,760 |
156,470,579 |
|||
Non-GAAP Income per share - basic |
0.15 |
0.13 |
|||
Non-GAAP Income per share - diluted |
0.15 |
0.12 |
|||
Note 1: Each ADS represents one common shares. |
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||
(In thousands except for per share and per ADS amounts) |
|||
For the Year Ended May 31 |
|||
2012 |
2011 |
||
(Unaudited) |
(Unaudited) |
||
USD |
USD |
||
Net Revenues: |
|||
Educational Programs and services |
693,712 |
508,439 |
|
Books and others |
78,006 |
49,433 |
|
Total net revenues |
771,718 |
557,872 |
|
Operating costs and expenses (note 1): |
|||
Cost of revenues |
304,027 |
222,625 |
|
Selling and marketing |
115,151 |
82,797 |
|
General and administrative |
235,743 |
155,412 |
|
Disposal loss |
- |
1,537 |
|
Total operating costs and expenses |
654,921 |
462,371 |
|
Operating income |
116,797 |
95,501 |
|
Other income, net |
26,663 |
14,274 |
|
Benefits (Provision) for income taxes |
(10,772) |
(8,236) |
|
Net income |
132,688 |
101,539 |
|
Less: Net income attributable to the noncontrolling interests |
- |
235 |
|
Net income attributable to New Oriental Education & Technology Group Inc. |
132,688 |
101,774 |
|
Net income per share attributable to New Oriental-Basic |
0.86 |
0.66 |
|
Net income per share attributable to New Oriental-Diluted |
0.85 |
0.65 |
|
Net income per ADS attributable to New Oriental-Basic (note 2) |
0.86 |
0.66 |
|
Net income per ADS attributable to New Oriental-Diluted (note 2) |
0.85 |
0.65 |
Notes: |
|||||
Note 1: Share-based compensation expenses (in thousands) are included in |
|||||
For the Year Ended May 31 |
|||||
2012 |
2011 |
||||
(Unaudited) |
(Unaudited) |
||||
USD |
USD |
||||
Cost of revenues |
216 |
900 |
|||
Selling and marketing |
- |
- |
|||
General and administrative |
23,909 |
14,145 |
|||
Total |
24,125 |
15,045 |
|||
Note 2: Each ADS represents one common shares. |
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 |
|||||
2012 |
2011 |
||||
(Unaudited) |
(Unaudited) |
||||
USD |
USD |
||||
General and administrative expenses |
235,743 |
155,412 |
|||
Share-based compensation expense in |
23,909 |
14,145 |
|||
Non-GAAP general and administrative expenses |
211,834 |
141,267 |
|||
Total operating costs and expenses |
654,921 |
462,371 |
|||
Share-based compensation expenses |
24,125 |
15,045 |
|||
Disposal loss |
- |
1,537 |
|||
Non-GAAP operating costs and expenses |
630,796 |
445,789 |
|||
Operating income |
116,797 |
95,501 |
|||
Share-based compensation expenses |
24,125 |
15,045 |
|||
Disposal loss |
- |
1,537 |
|||
Non-GAAP operating income |
140,922 |
112,083 |
|||
Operating margin |
15.1% |
17.1% |
|||
Non-GAAP operating margin |
18.3% |
20.1% |
|||
Net income attributable to New Oriental |
132,688 |
101,774 |
|||
Share-based compensation expense |
24,125 |
15,045 |
|||
Disposal loss |
- |
1,537 |
|||
Non-GAAP net income |
156,813 |
118,356 |
|||
Net income per ADS attributable to New |
0.86 |
0.66 |
|||
Net income per ADS attributable to New |
0.85 |
0.65 |
|||
Non-GAAP net income per ADS attributable to |
1.01 |
0.77 |
|||
Non-GAAP net income per ADS attributable to |
1.00 |
0.76 |
|||
Weighted average shares used in calculating |
154,627,784 |
153,253,065 |
|||
Weighted average shares used in calculating |
156,872,441 |
156,071,833 |
|||
Non-GAAP Income per share - basic |
1.01 |
0.77 |
|||
Non-GAAP Income per share - diluted |
1.00 |
0.76 |
|||
Note 1: Each ADS represents one common shares. |
SOURCE