New Oriental Announces Results for the Second Fiscal Quarter Ended November 30, 2009
Net Revenues Increased by 23.8% Year-Over-Year
GAAP Net Income Decreased by 63.9% Year-Over-Year
BEIJING, Jan. 19 /PRNewswire-Asia/ -- 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, 2009, which is the second quarter of New Oriental's fiscal year 2010.
Highlights for the Second Fiscal Quarter Ended November 30, 2009
-- Total net revenues increased by 23.8% year-over-year to US$61.2 million
from US$49.4 million in the same period of the prior fiscal year.
-- GAAP net income decreased by 63.9% year-over-year to US$1.1 million
from US$3.1 million in the same period of the prior fiscal year. Non-
GAAP net income, which excludes share-based compensation expenses,
decreased by 25.8% year-over-year to US$5.5 million from US$7.4 million
in the same period of the prior fiscal year.
-- GAAP loss from operations was US$0.9 million, compared to income from
operations of US$0.9 million in the same period of the prior fiscal
year.
Non-GAAP income from operations decreased by 33.4% year-over-year to
US$3.5 million from US$5.2 million in the same period of the prior
fiscal year.
-- GAAP basic and diluted net income per ADS were US$0.03 and US$0.03,
respectively. Non-GAAP basic and diluted net income per ADS were
US$0.15 and US$0.14, respectively. Each ADS represents four common
shares of the Company.
-- Total student enrollments in language training and test preparation
courses increased by 5.1% year-over-year to approximately 307,000 from
approximately 292,200 in the same period of the prior fiscal year.
-- The total number of schools remained at 48, located in 40 cities, as of
November 30, 2009. The number of learning centers increased by 11 to
250 as of November 30, 2009, up from 239 as of August 31, 2009.
Financial and Student Enrollments Summary -- Second Fiscal Quarter 2010 and First Six Months of FY2010
(US$ 000, except per ADS data and student enrollments)
Q2 of FY2010 Q2 of FY 2009 Pct. Change
Net revenues 61,195 49,430 23.8%
GAAP net income 1,107 3,064 -63.9%
Non-GAAP net income (1) 5,470 7,376 -25.8%
GAAP operating income (loss) (911) 870 -204.7%
Non-GAAP operating income (1) 3,452 5,182 -33.4%
GAAP net income per ADS basic (2) 0.03 0.08 -64.3%
GAAP net income per ADS diluted (2) 0.03 0.08 -64.1%
Non-GAAP net income per ADS
basic (1)(2) 0.15 0.20 -26.7%
Non-GAAP net income per ADS
diluted (1)(2) 0.14 0.19 -26.4%
Total student enrollments in
language training and test
preparation courses 307,000 292,200 5.1%
1H of FY2010 1H of FY2009 Pct. Change
Net revenues 210,559 167,692 25.6%
GAAP net income 58,173 47,967 21.3%
Non-GAAP net income (1) 66,237 56,163 17.9%
GAAP operating income 60,020 49,735 20.7%
Non-GAAP operating income (1) 68,084 57,931 17.5%
GAAP net income per ADS basic (2) 1.54 1.29 19.8%
GAAP net income per ADS diluted (2) 1.50 1.25 20.5%
Non-GAAP net income per ADS
basic (1)(2) 1.76 1.51 16.5%
Non-GAAP net income per ADS
diluted (1)(2) 1.71 1.46 17.2%
Total student enrollments in
language training and test
preparation courses 954,500 837,600 14.0%
(1) New Oriental provides net income, operating income, net income per ADS
on a Non-GAAP basis that excludes share-based compensation expenses to
reflect meaningful supplemental information regarding its performance
and liquidity. For more information on these Non-GAAP financial
measures, please see the table captioned "Reconciliations of Non-GAAP
measures to the most comparable GAAP measures" set forth at the end of
this release.
(2) Each ADS represents four common shares.
"Despite the continued challenges posed by the H1N1 flu outbreak, we saw sustained year-over-year revenue growth of 23.8% to US$61.2 million in the second quarter of fiscal year 2010," said Michael Yu, New Oriental's Chairman and Chief Executive Officer. "This was driven by strong revenue growth in our middle-high school and kids business lines, namely over 50% growth in middle and high school English and U-Can all-subjects training and over 40% growth in POP Kids English. We recorded blended average selling price year-over-year growth of approximately 13.8% for the quarter, mostly due to strong demand for higher priced one-to-one and small size class offerings. Also we enhanced market coverage during the quarter by adding a net of eleven new learning centers in ten existing cities."
Mr. Yu continued, "Our 5.1% year-over-year increase in enrollments in this quarter was negatively impacted by fear of H1N1, especially as the number of reported cases increased throughout the quarter and peaked in the last week of November. Since that time, however, the challenging situation has stabilized as the initial fear of H1N1 has begun to subside and the H1N1 vaccine has become widely available throughout the country, especially in large cities. As of January 12, 2010 more than 58 million people have been vaccinated in mainland China, and approximately 60% of school-aged children haven been immunized in Beijing and Shanghai. As expected, since early December 2009 we have been seeing a noticeable bounce back in cash receipts (cash collected in advance for enrollments). In the past six weeks, cash receipts have increased at least 30% each week compared to the same period in the prior year."
New Oriental's President and Chief Financial Officer, Louis T. Hsieh, stated, "We are delighted to report continued excellent progress in our non- English U-Can programs, including our new customized learning program of small and one-to-one class offerings. Even the seasonally slowest second fiscal quarter witnessed more than 13,400 U-Can enrollments, up from approximately 5,800 in the year ago period, representing over 100% year-over-year growth. In the first half of fiscal year 2010, we recorded more than 46,900 U-Can enrollments and over US$12 million in revenue, more than double the enrollments and over four times the revenue generated from the U-Can program in the year ago period. We are on track to achieve the US$25 million revenue target in fiscal year 2010 from the non-English U-Can program and our new customized learning program, and another approximately US$40-45 million in middle-high school English revenue."
Mr. Hsieh continued, "Given the much better than expected demand for our U-Can platform offerings, including the new customized learning program, we have made the strategic decision to accelerate our expansion of U-Can offerings to reach over 110 learning centers in 37 cities (previously 30 cities), with one-to-one and small class offerings reaching 30 cities (previously 8 to 10 cities), by our May 31, 2010 fiscal year end. To accomplish these aggressive targets, we plan to hire over 1,000 full and part- time U-Can teachers in fiscal year 2010, bringing the U-Can teacher total to over 1,400. In addition, we plan to significantly augment our U-Can department by adding over 250 staff, primarily in marketing and customer service and R&D- content development. The incremental cost of this accelerated expansion will be approximately US$4-5 million for the remaining two quarters of fiscal year 2010, but this will position us well for our seasonally most important summer quarter and beyond. We are confident that with New Oriental's leading brand and our two-pronged strategy of offering both affordable larger classes and higher priced individualized smaller classes, we will continue to be the leader in China's huge after-school training market."
Mr. Hsieh noted that the second quarter of New Oriental's fiscal year is typically the slowest in terms of revenue quarter as students are occupied with the beginning of the formal school year.
Financial Results for the Fiscal Quarter Ended November 30, 2009
For the second fiscal quarter of 2010, New Oriental reported net revenues of US$61.2 million, representing a 23.8% increase year-over-year.
Net revenues from educational programs and services for the second fiscal quarter were US$53.6 million, representing a 22.2% increase year-over-year. The growth was mainly driven by the increase in the number of student enrollments in language training and test preparation courses. Total student enrollments in language training and test preparation courses in the second quarter of fiscal year 2010 increased by 5.1% year-over-year to approximately 307,000 from approximately 292,200 in the same period of the prior fiscal year.
GAAP operating costs and expenses for the quarter were US$62.1 million, representing a 27.9% increase year-over-year. Non-GAAP operating costs and expenses for the quarter were US$57.7 million, representing a 30.5% increase year-over-year.
Cost of revenues increased by 28.1% year-over-year to US$27.8 million, primarily due to the increased number of courses and the greater number of schools and learning centers in operation.
Selling and marketing expenses increased by 40.8% year-over-year to US$11.7 million, primarily due to brand promotion expenses, especially for new programs such as U-Can and the customized learning program.
GAAP general and administrative expenses were US$22.6 million, representing a 21.9% increase year-over-year. Non-GAAP general and administrative expenses for the quarter increased by 28.5% year-over-year to US$18.5 million, primarily due to increased headcount as the Company expanded its network of schools and learning centers.
Total share-based compensation expenses, which were allocated to related operating costs and expenses, increased slightly to US$4.4 million in the second quarter of fiscal year 2010 from US$4.3 million in the same period of the prior fiscal year.
GAAP loss from operations for the quarter was US$0.9 million, compared to an income from operations of US$0.9 million in the same period of the prior fiscal year, and Non-GAAP income from operations for the quarter was US$3.5 million, compared to US$5.2 million in the same period of the prior fiscal year.
GAAP operating margin for the quarter was negative 1.5%, compared to 1.8% in the same period of the prior fiscal year. Non-GAAP operating margin for the quarter was 5.6%, compared to 10.5% in the same period of the prior fiscal year. This decline in operating margin was primarily due to the negative impact from the H1N1 flu pandemic and the increased marketing expenses for brand promotion, especially for new programs such as U-Can and the customized learning program.
GAAP net income for the quarter was US$1.1 million, representing a 63.9% decrease from the same period of the prior fiscal year. Basic and diluted net income per ADS were US$0.03 and US$0.03, respectively.
Non-GAAP net income was US$5.5 million, representing a 25.8% decrease from the same period of the prior fiscal year. Non-GAAP basic and diluted net income per ADS were US$0.15 and US$0.14, respectively.
Capital expenditures for the quarter were US$3.4 million, which was primarily used to add a net of 11 new learning centers and remodel older learning centers during the quarter.
As of November 30, 2009, New Oriental had cash and cash equivalents of US$210.6 million, as compared to US$238.7 million as of August 31, 2009. In addition, the Company had US$141.7 million in term deposits at the end of the quarter. Net operating cash flow generated for the second quarter of fiscal year 2010 was US$9.6 million.
The deferred revenue balance (cash collected from registered students for courses and to be recognized proportionally as revenue as the instructions are delivered) at the end of the second quarter of fiscal year 2010 was US$71.1 million, representing an increase of 34.9% from US$52.7 million at the end of the second quarter of fiscal year 2009.
Financial Results for the Six Months Ended November 30, 2009
For the first six months of fiscal year 2010, New Oriental reported net revenues of US$210.6 million, representing a 25.6% increase year-over-year.
Total student enrollments in language training and test preparation courses in the first six months of fiscal year 2010 increased by 14.0% to approximately 954,500 from approximately 837,600 in the same period of the prior fiscal year.
GAAP income from operations for the first six months of fiscal year 2010 was US$60.0 million, representing a 20.7% increase year-over-year. Non-GAAP income from operations for the first six months of fiscal year 2010 was US$68.1 million, representing a 17.5% increase year-over-year.
GAAP operating margin for the first six months of fiscal year 2010 was 28.5%, compared to 29.7% for the same period of the prior fiscal year. Non- GAAP operating margin for the first six months of fiscal year 2010 was 32.3%, compared to 34.5% for the same period of the prior fiscal year.
GAAP net income for the first six months of fiscal year 2010 was US$58.2 million, representing a 21.3% increase year-over-year. GAAP basic and diluted earnings per ADS for the first six months of fiscal year 2010 amounted to US$1.54 and US$1.50, respectively.
Non-GAAP net income for the first six months of fiscal year 2010 was US$66.2 million, representing a 17.9% increase year-over-year. Non-GAAP basic and diluted earnings per ADS for the first six months of fiscal year 2010 amounted to US$1.76 and US$1.71, respectively.
Outlook for the Third Quarter of Fiscal Year 2010
New Oriental expects its total net revenues in the third quarter of fiscal year 2010 (December 1, 2009 to February 28, 2010) to be in the range of US$82.5 million to US$85.1 million, representing year-over-year growth in the range of 26% to 30%, respectively. Please note that Chinese New Year 2010 will occur on February 14, 19 days later than the corresponding date in 2009 when Chinese New Year occurred on January 26, 2009. The Company believes that the late timing of Chinese New Year in 2010 will have the effect of pushing some enrollments into the fourth quarter of fiscal year 2010 at the expense of the third quarter of fiscal year 2010 as students return to their formal studies and enroll in New Oriental's Spring classes in early March 2010. The opposite occurred in 2009, due to the early timing of Chinese New Year, when students returned to their formal studies in mid-February 2009 and enrolled in Spring classes in the third quarter instead of the fourth quarter of fiscal year 2009. Therefore, in fiscal year 2009, New Oriental recorded third quarter enrollment growth of 31% and fourth quarter enrollment growth of only 8% as enrollments shifted to the third quarter of 2009 from the fourth quarter of 2009. 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 19, 2010 U.S. Eastern Time (9PM on January 19, 2010 Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as follows:
US: + 1-617-213-8054
Hong Kong: + 852-3002-1672
UK: + 44-207-365-8426
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 26, 2010:
International: +1-617-801-6888
Passcode: 76618020
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 four common shares, currently trade on the New York Stock Exchange under the symbol "EDU."
For more information about New Oriental, please visit http://english.neworiental.org .
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 2010 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 periodic reports to the U.S. Securities and Exchange Commission, in its annual report 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; health epidemics and other outbreaks in China; 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; 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, unless indicated otherwise, 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 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 table captioned "Reconciliation 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 financial measures is that these non-GAAP measures exclude the 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.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
As of November 30 As of August 31
2009 2009
USD USD
ASSETS:
Current assets:
Cash and cash equivalents 210,574 238,709
Restricted cash 571 541
Term deposits 141,666 129,027
Accounts receivable, net 2,039 1,985
Inventory 14,577 13,672
Deferred tax assets-Current 2,043 1,855
Prepaid expenses and other current
assets 17,437 16,963
Total current assets 388,907 402,752
Property, plant and equipment, net 113,213 112,721
Land use right, net 3,445 3,464
Amounts due from related parties 396 396
Deferred tax assets 854 664
Long term deposit 3,050 2,861
Long term prepaid rent 1,138 1,223
Intangible assets 821 837
Goodwill 2,712 2,711
Long term investment 2 2
Total assets 514,538 527,631
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable-trade 9,110 8,300
Accrued expenses and other current
liabilities 32,930 45,398
Income tax payable 6,189 7,801
Amount due to related parties 36 51
Deferred revenue 71,061 57,941
Total current liabilities 119,326 119,491
Deferred tax liabilities 142 149
Total long-term liabilities 142 149
Total liabilities 119,468 119,640
Total New Oriental Education &
Technology Group Inc. shareholders'
equity 395,157 407,991
Noncontrolling interest (note 1) (87) --
Total equity 395,070 407,991
Total liabilities and equity 514,538 527,631
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for per share and per ADS amounts)
For the Three Months Ended November 30
2009 2008
USD USD
Net Revenues:
Educational Programs and services 53,581 43,833
Books and others 7,614 5,597
Total net revenues 61,195 49,430
Operating costs and expenses (note 2):
Cost of revenues 27,823 21,719
Selling and marketing 11,676 8,291
General and administrative 22,607 18,550
Total operating costs and expenses 62,106 48,560
Operating income (loss) (911) 870
Other income, net 1,635 2,605
Provision for income taxes 296 (411)
Less: Net income attributable to the
noncontrolling interest (note 3) 87 --
Net income attributable to New
Oriental Education & Technology
Group Inc. 1,107 3,064
Net income per share-basic 0.01 0.02
Net income per share-diluted 0.01 0.02
Net income per ADS-basic (note 4) 0.03 0.08
Net income per ADS-diluted (note 4) 0.03 0.08
Notes:
Note 1: Amount in relation to noncontrolling interest, formerly named
minority interest, as of May 31, 2009 is separately presented as a
component of stockholders' equity on the unaudited condensed
consolidated financial statements in accordance with FASB
Statement No. 160, Noncontrolling Interest, which was adopted by
the Company on June 1, 2009.
Note 2: Share-based compensation expenses (in thousands) are included in
the operating costs and expenses as follows:
For the Three Months Ended November 30
2009 2008
(Unaudited) (Unaudited)
USD USD
Cost of revenues 173 83
Selling and marketing 52 52
General and administrative 4,138 4,177
Total 4,363 4,312
Note 3: Amount in relation to noncontrolling interest, formerly named
minority interest, for the three-month period ended November 30,
2008 is reclassified in accordance with FASB Statement No. 160,
Noncontrolling Interest, which was adopted by the Company on June
1, 2009.
Note 4: Each ADS represents four common shares.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
(In thousands except share and per ADS amounts)
For the Three Months Ended November 30
2009 2008
(Unaudited) (Unaudited)
USD USD
General and administrative expenses 22,607 18,550
Share-based compensation expense in
general and administrative expenses 4,138 4,177
Non-GAAP general and administrative
expenses 18,469 14,373
Total operating costs and expenses 62,106 48,560
Share-based compensation expenses 4,363 4,312
Non-GAAP operating costs and expenses 57,743 44,248
Operating income (loss) (911) 870
Share-based compensation expenses 4,363 4,312
Non-GAAP operating income 3,452 5,182
Operating margin -1.5% 1.8%
Non-GAAP operating margin 5.6% 10.5%
Net income 1,107 3,064
Share-based compensation expense 4,363 4,312
Non-GAAP net income 5,470 7,376
Net income per ADS - basic (note 1) 0.03 0.08
Net income per ADS - diluted (note 1) 0.03 0.08
Non-GAAP net income per ADS - basic
(note 1) 0.15 0.20
Non-GAAP net income per ADS - diluted
(note 1) 0.14 0.19
Weighted average shares used in
calculating basic net income per ADS
(note 1) 150,684,203 148,852,433
Weighted average shares used in
calculating diluted net income per
ADS (note 1) 154,578,625 153,437,244
Note 1: Each ADS represents four common shares.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for per share and per ADS amounts)
For the Six Months Ended November 30
2009 2008
USD USD
Net Revenues:
Educational Programs and services 196,002 155,054
Books and others 14,557 12,638
Total net revenues 210,559 167,692
Operating costs and expenses (note 1):
Cost of revenues 75,475 60,205
Selling and marketing 27,186 18,150
General and administrative 47,878 39,602
Total operating costs and expenses 150,539 117,957
Operating income 60,020 49,735
Other income, net 3,098 4,468
Provision for income taxes (5,270) (6,637)
Less: Net income attributable to the
noncontrolling interest (note 2) 325 401
Net income attributable to New
Oriental Education & Technology
Group Inc. 58,173 47,967
Net income per share-basic 0.39 0.32
Net income per share-diluted 0.38 0.31
Net income per ADS-basic (note 3) 1.54 1.29
Net income per ADS-diluted (note 3) 1.50 1.25
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
2009 2008
(Unaudited) (Unaudited)
USD USD
Cost of revenues 366 313
Selling and marketing 106 114
General and administrative 7,592 7,769
Total 8,064 8,196
Note 2: Amount in relation to noncontrolling interest, formerly named
minority interest, for the six-month period ended November 30,
2008 is reclassified in accordance with FASB Statement No. 160,
Noncontrolling Interest, which was adopted by the Company on June
1, 2009
Note 3: Each ADS represents four common shares.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
(In thousands except share and per ADS amounts)
For the Six Months Ended November 30
2009 2008
(Unaudited) (Unaudited)
USD USD
General and administrative expenses 47,878 39,602
Share-based compensation expense in
general and administrative expenses 7,592 7,769
Non-GAAP general and administrative
expenses 40,286 31,833
Total operating costs and expenses 150,539 117,957
Share-based compensation expenses 8,064 8,196
Non-GAAP operating costs and expenses 142,475 109,761
Operating income 60,020 49,735
Share-based compensation expenses 8,064 8,196
Non-GAAP operating income 68,084 57,931
Operating margin 28.5% 29.7%
Non-GAAP operating margin 32.3% 34.5%
Net income 58,173 47,967
Share-based compensation expense 8,064 8,196
Non-GAAP net income 66,237 56,163
Net income per ADS - basic (note 1) 1.54 1.29
Net income per ADS - diluted (note 1) 1.50 1.25
Non-GAAP net income per ADS - basic
(note 1) 1.76 1.51
Non-GAAP net income per ADS - diluted
(note 1) 1.71 1.46
Weighted average shares used in
calculating basic net income per ADS
(note 1) 150,638,331 148,770,074
Weighted average shares used in
calculating diluted net income per
ADS (note 1) 154,726,841 153,718,565
Note 1: Each ADS represents four common shares.
For investor and media inquiries, please contact:
In China:
Ms. Sisi Zhao
New Oriental Education and Technology Group Inc.
Tel: +86-10-6260-5568
Email: [email protected]
Ms. Courtney Shike
Brunswick Group LLC
Tel: +86-10-6566-2256
Email: [email protected]
In the U.S.:
Ms. Kate Tellier
Brunswick Group LLC
Tel: +1-212-333-3810
Email: [email protected]
SOURCE New Oriental Education and Technology Group Inc.
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