Quarterly Net Revenues Increased by 22.7% Year-Over-Year
Quarterly Student Enrollments Increased by 56.0% Year-Over-Year
Quarterly Net Income Attributable to New Oriental Increased by 76.1% Year-Over-Year
BEIJING, Jan. 17, 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 second fiscal quarter ended
November 30, 2016, which is the second quarter of New Oriental's fiscal year
2017.
Financial Highlights for the Second Fiscal Quarter Ended November 30, 2016
- Total net revenues increased by 22.7% year-over-year to US$341.2 million.
- Operating income was US$0.2 million, compared to a loss from operations of US$10.4 million in the same period of the prior fiscal year.
- Net income attributable to New Oriental increased by 76.1% year-over-year to US$10.4
million.
|
Key Financial Results
|
|
|
|
|
|
(in thousands US$, except per ADS(1) data)
|
2Q FY2017
|
2Q FY2016
|
% of change
|
|
Net revenues
|
341,238
|
278,082
|
22.7%
|
|
Operating income
|
214
|
(10,399)
|
102.1%
|
|
Non-GAAP operating income (2)(3)
|
2,379
|
(5,416)
|
143.9%
|
|
Net income attributable to New Oriental
|
10,360
|
5,883
|
76.1%
|
|
Non-GAAP net income attributable to New
Oriental (2)(3)
|
12,525
|
10,866
|
15.3%
|
|
Net income per ADS attributable to New Oriental - basic
|
0.07
|
0.04
|
75.2%
|
|
Net income per ADS attributable to New Oriental - diluted
|
0.07
|
0.04
|
75.5%
|
|
Non-GAAP net income per ADS attributable to New Oriental -
basic(3)(4)
|
0.08
|
0.07
|
14.7%
|
|
Non-GAAP net income per ADS attributable to New Oriental -
diluted(3)(4)
|
0.08
|
0.07
|
14.9%
|
|
|
|
|
|
(in thousands US$, except per ADS(1) data)
|
1H FY2017
|
1H FY2016
|
% of change
|
|
Net revenues
|
875,307
|
736,571
|
18.8%
|
|
Operating income
|
152,798
|
119,447
|
27.9%
|
|
Non-GAAP operating income(2)(3)
|
155,844
|
128,179
|
21.6%
|
|
Net income attributable to New Oriental
|
151,422
|
134,426
|
12.6%
|
|
Non-GAAP net income attributable to New
Oriental(2)(3)
|
154,468
|
143,158
|
7.9%
|
|
Net income per ADS attributable to New Oriental - basic
|
0.96
|
0.86
|
12.0%
|
|
Net income per ADS attributable to New Oriental - diluted
|
0.96
|
0.86
|
12.1%
|
|
Non-GAAP net income per ADS attributable to New Oriental -
basic(3)(4)
|
0.98
|
0.91
|
7.3%
|
|
Non-GAAP net income per ADS attributable to New Oriental -
diluted(3)(4)
|
0.98
|
0.91
|
7.4%
|
|
|
|
|
|
(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 Second Fiscal Quarter Ended November 30, 2016
- Total student enrollments in academic subjects tutoring and test preparation courses increased by 56.0% year-over-year to
approximately 1,312,300 for the second fiscal quarter of 2017.
- The total number of schools and learning centers was 789 as of November 30, 2016, an increase
of 69 compared to 720 as of November 30, 2015, and an increase of 18 compared to 771 as of
August 31, 2016. The total number of schools was 69 as of November 30,
2016.
Michael Minhong Yu, New Oriental's Executive Chairman, commented, "We are very pleased with our
better than anticipated results for the second quarter. We are experiencing increased student satisfaction as we bring together
the best learning experiences to help students achieve more, which in turn boosts retention rate and new student enrollment and
also contributes to strengthening our brand reputation. This fueled a strong growth of the second quarter top line metrics
-- a top line growth of 22.7% or 30.2% if considering in our functional currency Renminbi.
This was driven largely by a combination of a broad product portfolio, solid market demand, and effective operation at the sales
level. It is also encouraging to see a strong deferred revenue balance of US$764.7 million at the
end of the second quarter, up approximately 30.4% year-over-year. The key driver of this was student enrollments which were up by
56% in the quarter. Our K-12 all-subjects after-school tutoring business continued its strong momentum, with revenue up
approximately 45% and enrollment up approximately 78% year-over-year. Further, our U-Can middle and high school all-subjects
after-school tutoring business grew approximately 43% and the POP Kids program achieved a growth of approximately 49%
year-over-year."
Chenggang Zhou, New Oriental's Chief Executive Officer, added, "As part of the execution of our
well-proven 'Optimize the Market' strategy, we made great
progress across the board in building out our successful diversified business model during the second quarter. We added a net of
15 learning centers in existing cities, opened a new school and a new learning center in the city of Yantai, and piloted a
dual-teacher model school in the city of Tai'an, aiming to bring our expertise to more remote areas in China. All together this added a total of approximately 30,000 square meters of classroom area, representing
about 3% capacity expansion. On the other hand, we continued to roll out the well-proven O2O integrated education system,
including the new POP Kids program and U-Can Visible Progress System in all existing cities. We also continued to test the new
O2O system for overseas test preparation business, including IELTS, TOEFL and SAT programs, in seven large cities in China. In addition, our pure online education platform, Koolearn.com, recorded revenue growth of 33%
year-over-year, with an 11% increase in registered users and a 33% increase in paid users."
Stephen Zhihui Yang, New Oriental's Chief Financial Officer, commented, "Based on very strong
top line performance coupled with strong execution and financial discipline, we recorded operating income of US$0.2 million for the quarter compared to a loss of US$10.4 million in the same
period of last year. Operating margin increased 380 basis points based on a dramatic improvement in operational efficiency,
improved utilization of facilities, and effective cost control within the organization. The strong bottom line performance
further proved the effectiveness of our 'Optimize the Market'
strategy and reinforced our confidence in the ability to build long-term value for our customers and shareholders."
Financial Results for the Second Fiscal Quarter Ended November 30, 2016
Net Revenues
For the second fiscal quarter of 2017, New Oriental reported net revenues of US$341.2 million,
representing a 22.7% increase year-over-year. Net revenues from educational programs and services for the second fiscal quarter
were US$312.2 million, representing a 24.1% 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 second fiscal quarter of 2017
increased by 56.0% year-over-year to approximately 1,312,300.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$341.0 million, representing an 18.2%
increase year-over-year. Non-GAAP operating costs and expenses for the quarter, which exclude share-based compensation expenses,
were US$338.9 million, representing a 19.5% increase year-over-year.
- Cost of revenues increased by 21.7% year-over-year to US$163.4 million, primarily due
to increases in teachers' compensation for more teaching hours.
- Selling and marketing expenses increased by 18.2% year-over-year to US$52.2 million,
primarily due to increases in brand promotion expenses.
- General and administrative expenses for the quarter increased by 13.9% year-over-year to US$125.4 million. Non-GAAP general and administrative expenses, which exclude share-based compensation
expenses, were US$123.3 million, representing a 17.3% increase year-over-year.
Total share-based compensation expenses, which were allocated to related operating costs and expenses, decreased by 56.6% to
US$2.2 million in the second fiscal quarter of 2017.
Operating Income and Operating Margin
Operating income was US$0.2 million, compared to a loss of US$10.4
million in the same period of the prior fiscal year. Non-GAAP income from operations for the quarter was US$2.4 million, compared to non-GAAP loss from operations of US$5.4 million in
the same period of the prior fiscal year.
Operating margin for the quarter was 0.1%, compared to negative 3.7% in the same period of the prior fiscal year. Non-GAAP
operating margin, which excludes share-based compensation expenses, for the quarter was 0.7%, compared to negative 1.9% in the
same period of the prior fiscal year.
Net Income and EPS
Net income attributable to New Oriental for the quarter was US$10.4 million, representing a
76.1% increase from the same period of the prior fiscal year. Basic and diluted earnings per ADS attributable to New Oriental
were US$0.07 and US$0.07, respectively.
Non-GAAP Net Income and Non-GAAP EPS
Non-GAAP net income attributable to New Oriental for the quarter was US$12.5 million,
representing a 15.3% increase from the same period of the prior fiscal year. Non-GAAP basic and diluted earnings per ADS
attributable to New Oriental were US$0.08 and US$0.08,
respectively.
Cash Flow
Net operating cash flow for the second fiscal quarter of 2017 was approximately US$116.4
million. Capital expenditures for the quarter were US$21.2 million, which were primarily
attributable to the opening of 2 new schools and 36 learning centers and renovations at existing learning centers.
Balance Sheet
As of November 30, 2016, New Oriental had cash and cash equivalents of US$520.7 million, compared to US$591.1 million as of August 31, 2016. In addition, the Company had US$143.7 million in term deposits,
US$1,233.9 million in short-term investment.
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 second quarter of fiscal year 2017 was
US$764.7 million, an increase of 30.4% from US$586.5 million at the
end of the second quarter of fiscal year 2016.
Financial Results for the Six Months Ended November 30, 2016
For the first six months of fiscal year 2017, New Oriental reported net revenues of US$875.3
million, representing an 18.8% increase year-over-year.
Total student enrollments in academic subjects tutoring and test preparation courses in the first six months of fiscal year
2017 increased by 42.4% to approximately 2,638,600.
Income from operations for the first six months of fiscal year 2017 was US$152.8 million,
representing a 27.9% increase year-over-year. Non-GAAP income from operations for the first six months of fiscal year 2017 was
US$155.8 million, representing a 21.6% increase year-over-year.
Operating margin for the first six months of fiscal year 2017 was 17.5%, compared to 16.2% for the same period of the prior
fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses for the first six months of fiscal year
2017, was 17.8%, compared to 17.4% for the same period of the prior fiscal year.
Net income attributable to New Oriental for the first six months of fiscal year 2017 was US$151.4
million, representing a 12.6% increase year-over-year. Basic and diluted net income per ADS attributable to New Oriental
for the first six months of fiscal year 2017 amounted to US$0.96 and US$0.96, respectively.
Non-GAAP net income attributable to New Oriental for the first six months of fiscal year 2017 was US$154.5 million, representing a 7.9% increase year-over-year. Non-GAAP basic and diluted net income per ADS
attributable to New Oriental for the first six months of fiscal year 2017 amounted to US$0.98 and
US$0.98, respectively.
Outlook for Third Quarter of Fiscal Year 2017
New Oriental expects total net revenues in the third quarter of fiscal year 2017 (December 1,
2016 to February 28, 2017) to be in the range of US$408.7 million to
US$421.8 million, representing year-over-year growth in the range of 18% to 22%.
The projected growth rate of revenue in our functional currency Renminbi is expected to be in the range of 25% to 29% for the
third quarter of fiscal year 2017.
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 January 17, 2017, U.S. Eastern Time (9 PM on January 17,
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 January 25,
2017:
|
International:
|
+61-2-8199-0299
|
|
Passcode:
|
45208701
|
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 November 30
|
|
As of August 31
|
|
2016
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
ASSETS:
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
520,689
|
|
591,081
|
|
Restricted cash, current
|
44
|
|
965
|
|
Term deposits
|
143,717
|
|
96,345
|
|
Short term investments
|
1,233,881
|
|
1,133,634
|
|
Accounts receivable, net
|
3,091
|
|
3,277
|
|
Inventory
|
30,190
|
|
29,339
|
|
Prepaid expenses and other current assets
|
122,574
|
|
104,745
|
|
Amounts due from related parties, current
|
5,091
|
|
5,274
|
|
Long term investments due within one year
|
-
|
|
41,757
|
|
Total current assets
|
2,059,277
|
|
2,006,417
|
|
|
|
|
|
Property, plant and equipment, net
|
249,641
|
|
250,667
|
|
Land use rights, net
|
3,681
|
|
3,822
|
|
Amounts due from related parties, non-current
|
1,763
|
|
1,867
|
|
Deferred tax assets, non-current
|
16,084
|
|
14,526
|
|
Long term deposit
|
18,672
|
|
17,236
|
|
Long term prepaid rent
|
284
|
|
364
|
|
Restricted cash, non-current
|
3,737
|
|
3,864
|
|
Intangible assets
|
1,992
|
|
2,314
|
|
Goodwill
|
10,079
|
|
10,390
|
|
Long term investments
|
203,350
|
|
199,248
|
|
Other non-current asset
|
1,598
|
|
-
|
|
Total assets
|
2,570,158
|
|
2,510,715
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable (including accounts payable of the consolidated VIE
without recourse to New Oriental of US$24,087 and US$26,925 as of August 31, 2016 and November 30, 2016,
respectively)
|
27,024
|
|
24,367
|
|
Accrued expenses and other current liabilities (including accrued expenses
and other current liabilities of the consolidated VIE without recourse to New Oriental of US$189,857 and US$174,968 as of
August 31, 2016 and November 30, 2016, respectively)
|
190,900
|
|
215,298
|
|
Income taxes payable (including income tax payable of the consolidated VIE
without recourse to New Oriental of US$41,180 and US$35,291 as of August 31, 2016 and November 30, 2016,
respectively)
|
37,276
|
|
42,802
|
|
Amounts due to related parties (including amounts due to related parties of
the consolidated VIE without recourse to New Oriental of US$41 and US$41 as of August 31, 2016 and November 30, 2016,
respectively)
|
41
|
|
41
|
|
Deferred revenue (including deferred revenue of the consolidated VIE
without recourse to New Oriental of US$654,032 and US$759,045 as of August 31, 2016 and November 30, 2016,
respectively)
|
764,696
|
|
657,098
|
|
|
|
|
|
Total current liabilities
|
1,019,937
|
|
939,606
|
|
|
|
|
|
Deferred tax liabilities (including deferred tax liabilities of the
consolidated VIE without recourse to New Oriental of US$1,392 and US$1,333 as of August 31, 2016 and November 30, 2016,
respectively)
|
1,735
|
|
1,870
|
|
|
|
|
|
Total long-term liabilities
|
1,735
|
|
1,870
|
|
|
|
|
|
Total liabilities
|
1,021,672
|
|
941,476
|
|
|
|
|
|
Noncontrolling interests
|
34,893
|
|
33,927
|
|
|
|
|
|
Total New Oriental Education & Technology Group Inc.
shareholders' equity
|
1,513,593
|
|
1,535,312
|
|
|
|
|
|
Total shareholders' equity
|
1,548,486
|
|
1,569,239
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
2,570,158
|
|
2,510,715
|
|
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 November 30
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
Net Revenues:
|
|
|
|
|
Educational programs and services
|
312,193
|
|
251,525
|
|
Books and others
|
29,045
|
|
26,557
|
|
Total net revenues
|
341,238
|
|
278,082
|
|
|
|
|
|
Operating costs and expenses (note 1):
|
|
|
|
|
Cost of revenues
|
163,408
|
|
134,235
|
|
Selling and marketing
|
52,172
|
|
44,145
|
|
General and administrative
|
125,444
|
|
110,101
|
|
Total operating costs and expenses
|
341,024
|
|
288,481
|
|
Operating Income (Loss)
|
214
|
|
(10,399)
|
|
|
|
|
|
Other income, net
|
15,884
|
|
17,820
|
|
|
|
|
|
Provision for income taxes
|
(2,870)
|
|
(455)
|
|
Loss from equity method investments
|
(846)
|
|
(1,086)
|
|
Net income
|
12,382
|
|
5,880
|
|
|
|
|
|
Net (gain) loss attributable to the noncontrolling interests
|
(2,022)
|
|
3
|
|
|
|
|
|
Net income attributable to New Oriental Education &
Technology Group Inc.
|
10,360
|
|
5,883
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to New Oriental-Basic
|
0.07
|
|
0.04
|
|
|
|
|
|
Net income per share attributable to New Oriental-Diluted
|
0.07
|
|
0.04
|
|
|
|
|
|
Net income per ADS attributable to New Oriental-Basic
(note 2)
|
0.07
|
|
0.04
|
|
|
|
|
|
Net income per ADS attributable to New Oriental-Diluted
(note 2)
|
0.07
|
|
0.04
|
|
|
|
|
|
Other comprehensive income (loss), net of tax
|
(33,213)
|
|
13,005
|
|
Comprehensive income (loss)
|
(20,831)
|
|
18,885
|
|
Comprehensive income (loss) attributable to New Oriental Education &
Technology Group Inc.
|
(23,909)
|
|
18,888
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
Note 1: Share-based compensation expenses (in thousands) are included in
the operating costs and expenses as follows:
|
|
|
|
|
|
For the Three Months Ended November 30
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
General and administrative
|
2,165
|
|
4,983
|
|
Total
|
2,165
|
|
4,983
|
|
|
|
|
|
|
|
|
|
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 November 30
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
|
General and administrative expenses
|
125,444
|
|
110,101
|
|
Share-based compensation expense in general
and administrative expenses
|
2,165
|
|
4,983
|
|
Non-GAAP general and administrative expenses
|
123,279
|
|
105,118
|
|
|
|
|
|
Total operating costs and expenses
|
341,024
|
|
288,481
|
|
Share-based compensation expenses
|
2,165
|
|
4,983
|
|
Non-GAAP operating costs and expenses
|
338,859
|
|
283,498
|
|
|
|
|
|
Operating income (loss)
|
214
|
|
(10,399)
|
|
Share-based compensation expenses
|
2,165
|
|
4,983
|
|
Non-GAAP operating income (loss)
|
2,379
|
|
(5,416)
|
|
|
|
|
|
Operating margin
|
0.1%
|
|
-3.7%
|
|
Non-GAAP operating margin
|
0.7%
|
|
-1.9%
|
|
|
|
|
|
Net income attributable to New Oriental
|
10,360
|
|
5,883
|
|
Share-based compensation expenses
|
2,165
|
|
4,983
|
|
Non-GAAP net income
|
12,525
|
|
10,866
|
|
|
|
|
|
Net income per ADS attributable to New
Oriental- Basic (note 2)
|
0.07
|
|
0.04
|
|
Net income per ADS attributable to New
Oriental- Diluted (note 2)
|
0.07
|
|
0.04
|
|
|
|
|
|
Non-GAAP net income per ADS attributable to New
Oriental - Basic (note 2)
|
0.08
|
|
0.07
|
|
Non-GAAP net income per ADS attributable to New
Oriental - Diluted (note 2)
|
0.08
|
|
0.07
|
|
|
|
|
|
Weighted average shares used in calculating
basic net income per ADS (note 2)
|
157,470,996
|
|
156,673,931
|
|
Weighted average shares used in calculating
diluted net income per ADS (note 2)
|
157,865,564
|
|
157,301,183
|
|
|
|
|
|
Non-GAAP income per share - basic
|
0.08
|
|
0.07
|
|
Non-GAAP income per share - diluted
|
0.08
|
|
0.07
|
|
|
|
|
|
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 Six Months Ended November 30
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
Net Revenues:
|
|
|
|
|
Educational programs and services
|
806,500
|
|
673,876
|
|
Books and others
|
68,807
|
|
62,695
|
|
Total net revenues
|
875,307
|
|
736,571
|
|
|
|
|
|
Operating costs and expenses (note 1):
|
|
|
|
|
Cost of revenues
|
366,778
|
|
305,886
|
|
Selling and marketing
|
110,637
|
|
93,522
|
|
General and administrative
|
245,094
|
|
217,716
|
|
Total operating costs and expenses
|
722,509
|
|
617,124
|
|
Operating income
|
152,798
|
|
119,447
|
|
|
|
|
|
Other income, net
|
29,931
|
|
35,495
|
|
|
|
|
|
Provision for income taxes
|
(25,581)
|
|
(18,394)
|
|
Loss from equity method investments
|
(2,683)
|
|
(2,084)
|
|
Net income
|
154,465
|
|
134,464
|
|
|
|
|
|
Net (gain) loss attributable to the noncontrolling interests
|
(3,043)
|
|
(38)
|
|
|
|
|
|
Net income attributable to New Oriental Education & Technology Group
Inc.
|
151,422
|
|
134,426
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to New Oriental-Basic
|
0.96
|
|
0.86
|
|
|
|
|
|
Net income per share attributable to New Oriental-Diluted
|
0.96
|
|
0.86
|
|
|
|
|
|
Net income per ADS attributable to New Oriental-Basic
(note 2)
|
0.96
|
|
0.86
|
|
|
|
|
|
Net income per ADS attributable to New Oriental-Diluted
(note 2)
|
0.96
|
|
0.86
|
|
|
|
|
|
Other comprehensive income (loss), net of tax
|
(48,815)
|
|
(20,925)
|
|
Comprehensive income
|
105,650
|
|
113,539
|
|
Comprehensive income attributable to New Oriental
Education & Technology Group Inc.
|
101,104
|
|
113,501
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
Note 1: Share-based compensation expenses (in thousands) are included in
the operating costs and expenses as follows:
|
|
|
|
|
|
For the Six Months Ended November 30
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
General and administrative
|
3,046
|
|
8,732
|
|
Total
|
3,046
|
|
8,732
|
|
|
|
|
|
|
|
|
|
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 Six Months Ended November 30
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
USD
|
|
USD
|
|
|
|
|
|
General and administrative expenses
|
245,094
|
|
217,716
|
|
Share-based compensation expense in
general and administrative expenses
|
3,046
|
|
8,732
|
|
Non-GAAP general and administrative
expenses
|
242,048
|
|
208,984
|
|
|
|
|
|
Total operating costs and expenses
|
722,509
|
|
617,124
|
|
Share-based compensation expenses
|
3,046
|
|
8,732
|
|
Non-GAAP operating costs and expenses
|
719,463
|
|
608,392
|
|
|
|
|
|
Operating income
|
152,798
|
|
119,447
|
|
Share-based compensation expenses
|
3,046
|
|
8,732
|
|
Non-GAAP operating income
|
155,844
|
|
128,179
|
|
|
|
|
|
Operating margin
|
17.5%
|
|
16.2%
|
|
Non-GAAP operating margin
|
17.8%
|
|
17.4%
|
|
|
|
|
|
Net income attributable to New Oriental
|
151,422
|
|
134,426
|
|
Share-based compensation expenses
|
3,046
|
|
8,732
|
|
Non-GAAP net income
|
154,468
|
|
143,158
|
|
|
|
|
|
Net income per ADS attributable to New
Oriental- Basic (note 2)
|
0.96
|
|
0.86
|
|
Net income per ADS attributable to New
Oriental- Diluted (note 2)
|
0.96
|
|
0.86
|
|
|
|
|
|
Non-GAAP net income per ADS
attributable to New Oriental - Basic (note 2)
|
0.98
|
|
0.91
|
|
Non-GAAP net income per ADS
attributable to New Oriental - Diluted (note 2)
|
0.98
|
|
0.91
|
|
|
|
|
|
Weighted average shares used in calculating
basic net income per ADS (note 2)
|
157,459,296
|
|
156,617,864
|
|
Weighted average shares used in calculating
diluted net income per ADS (note 2)
|
157,847,481
|
|
157,155,289
|
|
|
|
|
|
Non-GAAP income per share - basic
|
0.98
|
|
0.91
|
|
Non-GAAP income per share - diluted
|
0.98
|
|
0.91
|
|
|
|
|
|
Note 2: Each ADS represents one common share.
|
|
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-second-fiscal-quarter-ended-november-30-2016-300391729.html
SOURCE New Oriental Education and Technology Group Inc.