BEIJING, April 24, 2024 /PRNewswire/ -- New Oriental Education & Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the third fiscal quarter ended February 29, 2024, which is the third quarter of New Oriental's fiscal year 2024.
Financial Highlights for the Third Fiscal Quarter Ended February 29, 2024
- Total net revenues increased by 60.1% year over year to US$1,207.3 million for the third fiscal quarter of 2024.
- Operating income increased by 70.6% year over year to US$113.4 million for the third fiscal quarter of 2024.
- Net income attributable to New Oriental increased by 6.8% year over year to US$87.2 million for the third fiscal quarter of 2024.
Key Financial Results
(in thousands US$, except per ADS(1) data) | 3Q FY2024 | 3Q FY2023 | % of change | ||
Net revenues | 1,207,286 | 754,153 | 60.1 % | ||
Operating income | 113,432 | 66,491 | 70.6 % | ||
Non-GAAP operating income (2)(3) | 140,902 | 87,895 | 60.3 % | ||
Net income attributable to New Oriental | 87,167 | 81,648 | 6.8 % | ||
Non-GAAP net income attributable to New Oriental (2)(3) | 104,716 | 95,362 | 9.8 % | ||
Net income per ADS attributable to New Oriental - basic | 0.53 | 0.49 | 7.7 % | ||
Net income per ADS attributable to New Oriental - diluted | 0.52 | 0.48 | 8.6 % | ||
Non-GAAP net income per ADS attributable to New Oriental – basic (2)(3)(4) | 0.63 | 0.57 | 10.8 % | ||
Non-GAAP net income per ADS attributable to New Oriental – diluted (2)(3)(4) | 0.63 | 0.56 | 11.6 % | ||
(in thousands US$, except per ADS(1) data) | 9M FY2024 | 9M FY2023 | % of change | ||
Net revenues | 3,176,907 | 2,137,189 | 48.6 % | ||
Operating income | 339,898 | 141,992 | 139.4 % | ||
Non-GAAP operating income (2)(3) | 436,559 | 201,242 | 116.9 % | ||
Net income attributable to New Oriental | 282,619 | 148,382 | 90.5 % | ||
Non-GAAP net income attributable to New Oriental (2)(3) | 344,192 | 196,818 | 74.9 % | ||
Net income per ADS attributable to New Oriental - basic | 1.71 | 0.88 | 94.3 % | ||
Net income per ADS attributable to New Oriental - diluted | 1.69 | 0.86 | 96.5 % | ||
Non-GAAP net income per ADS attributable to New Oriental – basic (2)(3)(4) | 2.08 | 1.17 | 78.4 % | ||
Non-GAAP net income per ADS attributable to New Oriental – diluted (2)(3)(4) | 2.05 | 1.14 | 79.1 % | ||
(1) Each ADS represents ten common shares. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE.
(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 and gain from fair value change of investments 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 attributable to New Oriental is computed using Non-GAAP net income attributable to New Oriental and the same number of shares and ADSs used in GAAP basic and diluted EPS calculation.
Operating Highlights for the Third Fiscal Quarter Ended February 29, 2024
- The total number of schools and learning centers was 911 as of February 29, 2024, an increase of 68 and 199 compared to 843 as of November 30, 2023 and 712 as of February 28, 2023, respectively. The total number of schools was 81 as of February 29, 2024.
Michael Yu, New Oriental's Executive Chairman, commented, "We are pleased to see a continued acceleration of our growth momentum that exceeded our expectation in the third quarter of fiscal year 2024, characterized by a remarkable top line growth of 60.1%. Our overseas test preparation and overseas study consulting businesses maintained a strong upward trajectory, exhibiting approximately 52.6% and 25.7% growth year over year, respectively. In addition, the domestic test preparation business targeting adults and university students recorded a growth of approximately 53.2% year over year. Moreover, it is also encouraging that our new educational business initiatives have all achieved promising results in this fiscal quarter, with 72.7% revenue growth year over year. Among these new educational business initiatives, our non-academic tutoring courses were offered in around 60 cities, attracting approximately 355,000 student enrollments in this fiscal quarter. Simultaneously, our intelligent learning system and devices were adopted in around 60 cities, with approximately 188,000 active paid users in this fiscal quarter. In addition to our robust growth momentum, our unwavering commitment to enhancing teaching quality and fostering an enriching learning experience for our students is evidenced by our continuous improvement in customer retention rate. I am confident to say New Oriental is well-positioned in its capacity to capture current and future market opportunities, leveraging its well-established brand and abundant educational resources."
Chenggang Zhou, New Oriental's Chief Executive Officer, added, "During this fiscal quarter, we continued to expand our capacity in some existing cities with greater growth potential and higher facility utilization, thereby increasing profitability at a moderate pace. Our total number of schools and learning centers increased to 911 by the end of this fiscal quarter. To support the strong recovery of our remaining key businesses and the rapid development of new educational initiatives, we continued to allocate resources to our online-merge-offline teaching system and apply new technologies to enhance the quality of our educational and product offerings. Notably, we made substantial investments in East Buy (东方甄选), enhancing the development of its private label products and its presence in multiple channels to attract a larger customer base with its premium products and innovative livestreaming content. While East Buy continued to grow, it also implemented comprehensive measures, including strengthening its supply chain management system to better control food safety and product quality, expanding product categories and increasing SKUs, to reaffirm its commitment to delivering high-quality products with good value for money."
Stephen Zhihui Yang, New Oriental's Executive President and Chief Financial Officer, commented, "Our GAAP operating margin for the quarter was 9.4% and Non-GAAP operating margin for the quarter was 11.7%. Following the promising development in the previous quarters, our educational businesses continued a significant year over year improvement in operating margin in this quarter, driven by strong revenue growth and enhanced utilization of facilities and teaching resources. We recorded a positive operating cash flow of US$109.4 million for this quarter, and by the end of this fiscal quarter, our cash and cash equivalents, term deposits and short-term investments totaled approximately US$4.8 billion. We are confident in achieving healthy growth across all business lines while enhancing operational efficiency and creating sustainable value for our customers and shareholders in the long term."
Share Repurchase
On July 26, 2022, the Company's board of directors authorized a share repurchase program, under which the Company may repurchase up to US$400 million of the Company's ADSs or common shares during the period from July 28, 2022 through May 31, 2023. The Company's board of directors further authorized to extend such share repurchase program by twelve months through May 31, 2024. As of April 23, 2024, the Company repurchased an aggregate of approximately 6.0 million ADSs for approximately US$195.3 million from the open market under the share repurchase program.
Financial Results for the Third Fiscal Quarter Ended February 29, 2024
Net Revenues
For the third fiscal quarter of 2024, New Oriental reported net revenues of US$1,207.3 million, representing a 60.1% increase year over year. The growth was mainly driven by the increase in net revenues from our educational new business initiatives and East Buy private label products and livestreaming e-commerce business.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$1,093.9 million, representing a 59.1% increase year over year. Non-GAAP operating costs and expenses for the quarter, which exclude share-based compensation expenses, were US$1,066.4 million, representing a 60.1% increase year over year. The increase was primarily due to the cost and expenses related to the substantial growth in East Buy private label products and livestreaming e-commerce business.
- Cost of revenues increased by 74.5% year over year to US$644.8 million.
- Selling and marketing expenses increased by 57.1% year over year to US$161.3 million.
- General and administrative expenses for the quarter increased by 33.6% year over year to US$287.8 million. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, were US$273.6 million, representing a 40.7% increase year over year.
Total share-based compensation expenses, which were allocated to related operating costs and expenses, increased by 28.3% to US$27.5 million in the third fiscal quarter of 2024.
Operating Income and Operating Margin
Operating income was US$113.4 million, representing a 70.6% increase year over year. Non-GAAP income from operations for the quarter was US$140.9 million, representing a 60.3% increase year over year.
Operating margin for the quarter was 9.4%, compared to 8.8% in the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses, for the quarter was 11.7%, compared to 11.7% in the same period of the prior fiscal year.
Net Income and Net Income per ADS
Net income attributable to New Oriental for the quarter was US$87.2 million, representing a 6.8% increase year over year. Basic and diluted net income per ADS attributable to New Oriental were US$0.53 and US$0.52, respectively.
Non-GAAP Net Income and Non-GAAP Net Income per ADS
Non-GAAP net income attributable to New Oriental for the quarter was US$104.7 million, representing a 9.8% increase year over year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental were US$0.63 and US$0.63, respectively.
Cash Flow
Net operating cash inflow for the third fiscal quarter of 2024 was approximately US$109.4 million and capital expenditures for the quarter were US$80.1 million.
Balance Sheet
As of February 29, 2024, New Oriental had cash and cash equivalents of US$2,013.6 million. In addition, the Company had US$1,570.8 million in term deposits and US$1,175.3 million in short-term investment.
New Oriental's deferred revenue, which represents cash collected upfront from customers and related revenue that will be recognized as the services or goods are delivered, at the end of the third quarter of fiscal year 2024 was US$1,521.7 million, an increase of 30.8% as compared to US$1,163.2 million at the end of the third quarter of fiscal year 2023.
Financial Results for the Nine Months Ended February 29, 2024
For the first nine months of fiscal year 2024, New Oriental reported net revenues of $3,176.9 million, representing a 48.6% increase year over year.
Operating income was US$339.9 million, representing a 139.4% increase year over year. Non-GAAP income from operations for the first nine months of fiscal year 2024 was US$436.6 million, representing a 116.9% increase year over year.
Operating margin for the first nine months of fiscal year 2024 was 10.7%, compared to 6.6% for the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses for the first nine months of fiscal year 2024, was 13.7%, compared to 9.4% for the same period of the prior fiscal year.
Net income attributable to New Oriental for the first nine months of fiscal year 2024 was US$282.6 million, representing a 90.5% increase year over year. Basic and diluted net income per ADS attributable to New Oriental for the first nine months of fiscal year 2024 amounted to US$1.71 and US$1.69, respectively.
Non-GAAP net income attributable to New Oriental for the first nine months of fiscal year 2024 was US$344.2 million, representing a 74.9% increase year over year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental for the first nine months of fiscal year 2024 amounted to US$2.08 and US$2.05, respectively.
Outlook for the Fourth Quarter of the Fiscal Year 2024
New Oriental expects total net revenues in the fourth quarter of the fiscal year 2024 (March 1, 2024 to May 31, 2024) to be in the range of US$1,101.5 million to US$1,127.3 million, representing year over year increase in the range of 28% to 31%.
The projected increase of revenue in our functional currency Renminbi is expected to be in the range of 34% to 37% for the fourth quarter of the fiscal year 2024.
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 April 24, 2024, U.S. Eastern Time (8 PM on April 24, 2024, Beijing/Hong Kong Time).
Please register in advance of the conference, using the link provided below. Upon registering, you will be provided with participant dial-in numbers, and unique personal PIN.
Conference call registration link: https://register.vevent.com/register/BI0b65461f12d9499caeb6af9d65a36784. It will automatically direct you to the registration page of "New Oriental FY2024 Q3 Earnings Conference Call" where you may fill in your details for RSVP.
In the 10 minutes prior to the call start time, you may use the conference access information (including dial in number(s) and personal PIN) provided in the confirmation email received at the point of registering.
Joining the conference call via a live webcast:
Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org.
Listening to the conference call replay:
A replay of the conference call may be accessed via the webcast on-demand by registering at https://edge.media-server.com/mmc/p/bv5iumbf first. The replay will be available until April 24, 2025.
About New Oriental
New Oriental is a provider of private educational services in China offering a wide range of educational programs, services and products to a varied student population throughout China. New Oriental's program, service and product offerings mainly consist of educational services and test preparation courses, private label products and livestreaming e-commerce and other services, overseas study consulting services, and educational materials and distribution. New Oriental is listed on NYSE (NYSE: EDU) and SEHK (9901.SEHK), respectively. New Oriental's ADSs, each of which represents ten common shares, are listed and traded on the NYSE. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE.
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 fourth quarter of fiscal year 2024, 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 effectively and efficiently manage changes of our existing business and new business; our ability to execute our business strategies; uncertainties in relation to the interpretation and implementation of or proposed changes to, the PRC laws, regulations and policies regarding the private education industry; our ability to attract students without a significant increase in course fees; our ability to maintain and enhance our "New Oriental" brand; our ability to maintain consistent teaching quality throughout our school network, or service quality throughout our brand; our ability to achieve the benefits we expect from recent and future acquisitions; 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 and livestreaming e-commerce business in China; the continuing efforts of our senior management team and other key personnel, 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 and gain from fair value change of investments, operating income excluding share-based compensation expenses, operating cost 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 and gain from fair value change of investments. 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 and gain from fair value change of investments 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 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 and gain from fair value change of investments 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:
Ms. Rita Fong Ms. Sisi Zhao
FTI Consulting New Oriental Education & Technology Group Inc.
Tel: +852 3768 4548 Tel: +86-10-6260-5568
Email: rita.fong@fticonsulting.com Email: zhaosisi@xdf.cn,
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(In thousands) | |||
As of February 29 | As of May 31 | ||
2024 | 2023 | ||
(Unaudited) | (Audited) | ||
USD | USD | ||
ASSETS: | |||
Current assets: | |||
Cash and cash equivalents | 2,013,627 | 1,662,982 | |
Restricted cash, current | 149,733 | 110,892 | |
Term deposits, current | 1,376,533 | 855,784 | |
Short-term investments | 1,175,306 | 1,477,843 | |
Accounts receivable, net | 30,565 | 33,074 | |
Inventory, net | 96,519 | 52,689 | |
Prepaid expenses and other current assets, net | 275,346 | 211,240 | |
Amounts due from related parties, current | 9,466 | 9,383 | |
Total current assets | 5,127,095 | 4,413,887 | |
Restricted cash, non-current | 25,714 | 31,553 | |
Term deposits, non-current | 194,248 | 462,734 | |
Property and equipment, net | 468,024 | 359,760 | |
Land use rights, net | 3,220 | 3,321 | |
Amounts due from related parties, non-current | 2,937 | 1,735 | |
Long-term deposits | 30,830 | 26,492 | |
Intangible assets, net | 20,234 | 25,179 | |
Goodwill, net | 104,466 | 105,514 | |
Long-term investments, net | 414,460 | 399,585 | |
Deferred tax assets, net | 63,666 | 55,933 | |
Right-of-use assets | 553,057 | 439,535 | |
Other non-current assets | 181,592 | 67,230 | |
Total assets | 7,189,543 | 6,392,458 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Accounts payable | 138,458 | 69,764 | |
Accrued expenses and other current liabilities | 623,548 | 569,437 | |
Income taxes payable | 165,624 | 118,049 | |
Amounts due to related parties | 262 | 346 | |
Deferred revenue | 1,521,733 | 1,337,630 | |
Operating lease liability, current | 178,263 | 155,752 | |
Total current liabilities | 2,627,888 | 2,250,978 | |
Deferred tax liabilities | 25,828 | 23,849 | |
Unsecured senior notes | 14,403 | 14,653 | |
Operating lease liabilities, non-current | 371,341 | 288,190 | |
Total long-term liabilities | 411,572 | 326,692 | |
Total liabilities | 3,039,460 | 2,577,670 | |
Equity | |||
New Oriental Education & Technology Group Inc. shareholders' equity | 3,873,873 | 3,604,348 | |
Non-controlling interests | 276,210 | 210,440 | |
Total equity | 4,150,083 | 3,814,788 | |
Total liabilities and equity | 7,189,543 | 6,392,458 | |
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. | |||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(In thousands except for per share and per ADS amounts) | |||
For the Three | For the Three | ||
2024 | 2023 | ||
(Unaudited) | (Unaudited) | ||
USD | USD | ||
Net revenues | 1,207,286 | 754,153 | |
Operating cost and expenses (note 1) | |||
Cost of revenues | 644,786 | 369,560 | |
Selling and marketing | 161,259 | 102,631 | |
General and administrative | 287,809 | 215,471 | |
Total operating cost and expenses | 1,093,854 | 687,662 | |
Operating income | 113,432 | 66,491 | |
Gain from fair value change of investments | 1,545 | 6,752 | |
Other income, net | 16,841 | 29,778 | |
Provision for income taxes | (32,703) | (19,339) | |
(Loss)/Gain from equity method investments | (13,325) | 10,598 | |
Net income | 85,790 | 94,280 | |
Add: Net loss/(income) attributable to non-controlling interests | 1,377 | (12,632) | |
Net income attributable to New Oriental Education & Technology Group Inc.'s shareholders | 87,167 | 81,648 | |
Net income per share attributable to New Oriental-Basic (note 2) | 0.05 | 0.05 | |
Net income per share attributable to New Oriental-Diluted (note 2) | 0.05 | 0.05 | |
Net income per ADS attributable to New Oriental-Basic (note 2) | 0.53 | 0.49 | |
Net income per ADS attributable to New Oriental-Diluted (note 2) | 0.52 | 0.48 |
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. | |||
RECONCILIATIONS OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES | |||
(In thousands except for per share and per ADS amounts) | |||
For the Three | For the Three | ||
2024 | 2023 | ||
(Unaudited) | (Unaudited) | ||
USD | USD | ||
General and administrative expenses | 287,809 | 215,471 | |
Less: Share-based compensation expenses in general and administrative expenses | 14,226 | 21,003 | |
Non-GAAP general and administrative expenses | 273,583 | 194,468 | |
Total operating cost and expenses | 1,093,854 | 687,662 | |
Less: Share-based compensation expenses | 27,470 | 21,404 | |
Non-GAAP operating cost and expenses | 1,066,384 | 666,258 | |
Operating income | 113,432 | 66,491 | |
Add: Share-based compensation expenses | 27,470 | 21,404 | |
Non-GAAP operating income | 140,902 | 87,895 | |
Operating margin | 9.4 % | 8.8 % | |
Non-GAAP operating margin | 11.7 % | 11.7 % | |
Net income attributable to New Oriental | 87,167 | 81,648 | |
Add: Share-based compensation expenses | 19,094 | 20,466 | |
Less: Gain from fair value change of investments | 1,545 | 6,752 | |
Non-GAAP net income attributable to New Oriental | 104,716 | 95,362 | |
Net income per ADS attributable to New Oriental- Basic (note 2) | 0.53 | 0.49 | |
Net income per ADS attributable to New Oriental- Diluted (note 2) | 0.52 | 0.48 | |
Non-GAAP net income per ADS attributable to New Oriental - Basic (note 2) | 0.63 | 0.57 | |
Non-GAAP net income per ADS attributable to New Oriental - Diluted (note 2) | 0.63 | 0.56 | |
Weighted average shares used in calculating basic net income per ADS (note 2) | 1,654,982,205 | 1,669,887,093 | |
Weighted average shares used in calculating diluted net income per ADS (note 2) | 1,671,727,365 | 1,681,414,233 | |
Non-GAAP net income per share - basic | 0.06 | 0.06 | |
Non-GAAP net income per share - diluted | 0.06 | 0.06 |
Notes: | |||
Note 1: Share-based compensation expenses (in thousands) are included in the operating cost and expenses as follows: | |||
For the Three Months | For the Three Months | ||
2024 | 2023 | ||
(Unaudited) | (Unaudited) | ||
USD | USD | ||
Cost of revenues | 7,405 | - | |
Selling and marketing | 5,839 | 401 | |
General and administrative | 14,226 | 21,003 | |
Total | 27,470 | 21,404 | |
Note 2: Each ADS represents ten common shares. |
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(In thousands) | ||||
For the Three | For the Three | |||
2024 | 2023 | |||
(Unaudited) | (Unaudited) | |||
USD | USD | |||
Net cash provided by operating activities | 109,436 | 190,482 | ||
Net cash provided by investing activities | 11,285 | 147,149 | ||
Net cash used in financing activities | (33,492) | (52,594) | ||
Effect of exchange rate changes | (18,901) | 23,140 | ||
Net change in cash, cash equivalents and restricted cash | 68,328 | 308,177 | ||
Cash, cash equivalents and restricted cash at beginning of period | 2,120,746 | 1,122,824 | ||
Cash, cash equivalents and restricted cash at end of period | 2,189,074 | 1,431,001 |
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. | |||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(In thousands except for per share and per ADS amounts) | |||
For the Nine Months | For the Nine Months | ||
2024 | 2023 | ||
(Unaudited) | (Unaudited) | ||
USD | USD | ||
Net revenues | 3,176,907 | 2,137,189 | |
Operating cost and expenses (note 1): | |||
Cost of revenues | 1,508,562 | 1,017,823 | |
Selling and marketing | 452,345 | 296,900 | |
General and administrative | 876,102 | 680,474 | |
Total operating cost and expenses | 2,837,009 | 1,995,197 | |
Operating income | 339,898 | 141,992 | |
Gain from fair value change of investments | 8,613 | 6,705 | |
Other income, net | 88,571 | 87,996 | |
Provision for income taxes | (104,159) | (46,624) | |
(Loss)/Gain from equity method investments | (36,327) | 5,378 | |
Net income | 296,596 | 195,447 | |
Add: Net income attributable to non-controlling interests | (13,977) | (47,065) | |
Net income attributable to New Oriental Education & Technology Group Inc.'s shareholders | 282,619 | 148,382 | |
Net income per share attributable to New Oriental-Basic (note 2) | 0.17 | 0.09 | |
Net income per share attributable to New Oriental-Diluted (note 2) | 0.17 | 0.09 | |
Net income per ADS attributable to New Oriental-Basic (note 2) | 1.71 | 0.88 | |
Net income per ADS attributable to New Oriental-Diluted (note 2) | 1.69 | 0.86 |
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 Nine Months | For the Nine Months | ||
2024 | 2023 | ||
(Unaudited) | (Unaudited) | ||
USD | USD | ||
General and administrative expenses | 876,102 | 680,474 | |
Less: Share-based compensation expenses in general and administrative expenses | 56,107 | 57,702 | |
Non-GAAP general and administrative expenses | 819,995 | 622,772 | |
Total operating cost and expenses | 2,837,009 | 1,995,197 | |
Less: Share-based compensation expenses | 96,661 | 59,250 | |
Non-GAAP operating cost and expenses | 2,740,348 | 1,935,947 | |
Operating income | 339,898 | 141,992 | |
Add: Share-based compensation expenses | 96,661 | 59,250 | |
Non-GAAP operating income | 436,559 | 201,242 | |
Operating margin | 10.7 % | 6.6 % | |
Non-GAAP operating margin | 13.7 % | 9.4 % | |
Net income attributable to New Oriental | 282,619 | 148,382 | |
Add: Share-based compensation expenses | 70,186 | 55,141 | |
Less: Gain from fair value change of investments | 8,613 | 6,705 | |
Non-GAAP net income attributable to New Oriental | 344,192 | 196,818 | |
Net income per ADS attributable to New Oriental- Basic (note 2) | 1.71 | 0.88 | |
Net income per ADS attributable to New Oriental- Diluted (note 2) | 1.69 | 0.86 | |
Non-GAAP net income per ADS attributable to New Oriental - Basic (note 2) | 2.08 | 1.17 | |
Non-GAAP net income per ADS attributable to New Oriental - Diluted (note 2) | 2.05 | 1.14 | |
Weighted average shares used in calculating basic net income per ADS (note 2) | 1,653,742,514 | 1,686,758,402 | |
Weighted average shares used in calculating diluted net income per ADS (note 2) | 1,668,903,402 | 1,691,361,202 | |
Non-GAAP net income per share - basic | 0.21 | 0.12 | |
Non-GAAP net income per share - diluted | 0.20 | 0.11 |
Notes: | |||
Note 1: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as follows: | |||
For the Nine Months Ended | For the Nine Months Ended | ||
2024 | 2023 | ||
(Unaudited) | (Unaudited) | ||
USD | USD | ||
Cost of revenues | 18,977 | 6 | |
Selling and marketing | 21,577 | 1,542 | |
General and administrative | 56,107 | 57,702 | |
Total | 96,661 | 59,250 | |
Note 2: Each ADS represents ten common shares. |
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(In thousands) | ||||
For the Nine | For the Nine | |||
2024 | 2023 | |||
(Unaudited) | (Unaudited) | |||
USD | USD | |||
Net cash provided by operating activities | 745,808 | 549,399 | ||
Net cash used in investing activities | (289,912) | (102,350) | ||
Net cash used in financing activities | (51,208) | (170,345) | ||
Effect of exchange rate changes | (21,041) | (40,230) | ||
Net change in cash, cash equivalents and restricted cash | 383,647 | 236,474 | ||
Cash, cash equivalents and restricted cash at beginning of period | 1,805,427 | 1,194,527 | ||
Cash, cash equivalents and restricted cash at end of period | 2,189,074 | 1,431,001 |