-- Net Revenues Increased by 46.9% Year-Over-Year
-- Net Income Increased by 38.1% Year-Over-Year
-- Net Income Excluding Share-Based Compensation Expenses (non-GAAP)
Increased by 52.7% Year-Over-Year
BEIJING, April 16 /Xinhua-PRNewswire/ -- New Oriental Education and Technology Group Inc. (the "Company") (NYSE: EDU), the largest provider of private educational services in China, today announced its unaudited financial results for the fiscal quarter ended February 29, 2008, which is the third quarter for New Oriental’s fiscal year 2008.
Highlights for the Third Fiscal Quarter Ended February 29, 2008
-- Total net revenues increased by 46.9% year-over-year to US$48.1
million from US$32.8 million in the same period of the prior fiscal
year.
-- Net income increased by 38.1% year-over-year to US$11.6 million
from US$8.4 million in the same period of the prior fiscal year; and
net income excluding share-based compensation expenses (non-GAAP)
increased by 52.7% year-over-year to US$13.9 million from US$9.1
million in the third quarter of fiscal year 2007.
-- Income from operations increased by 46.1% year-over-year to US$10.2
million from US$7.0 million in the same period of the prior fiscal
year; and income from operations excluding share-based compensation
expenses (non-GAAP) increased by 62.6% year-over-year to US$12.5
million from US$7.7 million in the third quarter of fiscal year 2007.
-- Basic and diluted earnings per ADS were US$0.31 and US$0.29,
respectively. Basic and diluted earnings per ADS excluding share-
based compensation expenses (non-GAAP) were US$0.37 and US$0.35,
respectively. Each ADS represents four common shares of the Company.
-- Total student enrollments in language training and test preparation
courses increased by 34.8% year-over-year to approximately 268,400
from approximately 199,100 in the same period of the prior fiscal
year.
-- The total number of schools and learning centers increased to 181 as
of February 29, 2008 from 128 as of February 28, 2007. The number of
schools remained at 38 and the total number of learning centers
increased by 17 to 143 as of February 29, 2008, up from 126 learning
centers as of November 30, 2007.
-- New Oriental established its first all-subjects middle school training
program, branded "New Oriental U Can," which targets middle and high
school Chinese students from ages 13 to 18 who are preparing for the
college entrance examination in China, or "gaokao." The gaokao is
required for admission to bachelor degree programs and most associate
degree programs at Chinese colleges and universities.
-- On April 14, 2008, New Oriental signed a definitive agreement to
acquire Mingshitang, a Beijing-based private school that specializes
in tutoring students who seek to retake the gaokao.
New Oriental is excited by its entry into the Chinese college entrance examination or "gaokao" test preparation market, both for first-time takers and for re-takers. Out of the 9.5 million students who took the gaokao in 2007, over 70% were first-time test takers. "U-Can" is New Oriental’s branded entry into the full-course middle and high school training program and targets both high school seniors preparing to take the gaokao for the first time and also younger students ages 13 to 18 who seek after-school, weekend and holiday programs to help them to improve their grades in Chinese, English, mathematics, physics, biology, chemistry, history and politics subject areas. In its initial launch this quarter, U-Can enrolled more than 8,100 students in non-English subject classes. In future quarters, New Oriental expects the business to grow quickly, leveraging the Company’s substantial middle and high school English business, which enrolled over 220,000 students in the last 12 months alone.
To complement New Oriental U-Can’s focus on first-time gaokao test takers and younger students seeking to improve their grades, New Oriental also plans to enter the gaokao re-takers market, which numbered over 2.5 million nationwide in 2007. On April 14, 2008, New Oriental signed a definitive agreement to acquire a 60% equity stake in Mingshitang, a Beijing-based private school that specializes in tutoring students who want to retake the gaokao exam. The remaining 40% will be subject to a multi-year earn-out structure. The transaction is scheduled to close in June 2008 pending further due diligence. This acquisition is highly strategic for New Oriental, and we expect the acquisition will allow the Company to:
-- Extend the New Oriental brand to a large non-English test
preparation market, poised for future growth. With gaokao re-takers
occupying over a quarter of the 9.5 million students who took the
gaokao in 2007, demand for training services in this area is strong.
-- Moderate seasonality of New Oriental’s business. Consisting of two
semesters in the fall and spring each year, the re-takers training
market is largely counter-seasonal to New Oriental’s core businesses,
which may allow for greater utilization of a portion of existing New
Oriental facilities, and in future years, will contribute to more
evenly spread revenue streams across the calendar year.
-- Offer opportunities for consolidation in a highly fragmented
market. The gaokao re-takers training market is highly fragmented and
dominated by local training schools. Mingshitang gives New Oriental a
foothold in Beijing to leverage as the Company rolls out its re-takers
training business to other select high-potential cities nationwide.
-- Synergies with New Oriental U-Can. As both businesses address
similar subject areas like Chinese, English, mathematics, physics,
biology, chemistry, history and politics, we expect to modify and
use a portion of the content to be developed by Mingshitang also in
New Oriental’s U-Can business. The Mingshitang teaching team’s
experience in the gaokao subject areas will also be a valuable
resource to the U Can instructors.
"We are pleased to mark New Oriental’s entry into the gaokao market, both for first-time takers and re-takers, with the establishment of U-Can and the pending acquisition of Mingshitang," said Michael Yu, New Oriental’s chairman and chief executive officer. "After five years of research and preparation on this initiative, we are confident that our middle and high school programs will meet the needs of Chinese students in a diversified range of subject matters and age groups, and will further extend and strengthen New Oriental’s market leadership position in test preparation. We plan to roll out U-Can in more than 30 cities throughout China over the next couple of years."
"In the third fiscal quarter of 2008, we continued to expand our nationwide network by a net 17 new learning centers in 14 cities, bringing our total additions for the first three quarters of fiscal year 2008 to 51 facilities, including the 3 schools and 48 learning centers. We intend to continue this rapid expansion in the quarters ahead to capture the strong demand for our programs and services," Mr. Yu added.
New Oriental’s chief financial officer, Louis T. Hsieh, stated, "At the end of January, we reaffirmed our net revenue guidance for the third quarter of 2008 of 22% to 28% year-over-year growth notwithstanding the detrimental impact to our business as a result of the severe winter storms in China in late January and early February, which were the worst in 50 years. We are now pleased to announce that we beat our top line guidance by delivering 46.9% top line growth. The severe winter storms in Southern and Central China forced us to close dozens of schools and learning centers in affected cities due to power outages and road closures caused by the freezing temperatures, strong winds and record snowfall amounts across China."
"We would like to take this opportunity to thank our students for their determination and dedication to learning, and to our teachers and staff for their commitment to teaching and hard work and perseverance in overcoming this natural disaster to keep as many schools and learning centers operational for as long as possible during this period," Mr. Hsieh continued. "The vast majority of the students in the affected areas where schools were closed elected to defer their enrollments to future quarters rather than cancel their registrations. As a result we enjoyed a record 268,400 student enrollments for the quarter, an increase of 34.8% over the year ago period, and record deferred revenue balance, or money collected from students for classes in future quarters, at the end of the quarter of US$35.8 million, an increase of 105.2% from the year ago period."
Mr. Hsieh noted that the third quarter of New Oriental’s fiscal year is typically the Company’s second strongest quarter of its fiscal year as revenue and student enrollments increase due to the month-long winter holiday for school age students in China.
Financial Results for the Third Fiscal Quarter Ended February 29, 2008
For the third fiscal quarter of 2008, New Oriental reported net revenues of US$48.1 million, a 46.9% increase year-over-year.
Net revenues from educational programs and services for the third fiscal quarter were US$44.6 million, representing a 44.4% 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 third quarter of fiscal year 2008 increased by 34.8% year-over-year to approximately 268,400 from approximately 199,100 in the third quarter of fiscal year 2007.
Total operating costs and expenses for the quarter were US$37.9 million, a 47.1% increase year-over-year; excluding share-based compensation expenses, operating costs and expenses (non-GAAP) for the quarter were US$35.6 million, a 42.0% increase year-over-year.
Cost of revenues for the quarter were US$18.5 million, a 33.5% increase year-over-year, primarily due to the increased number of courses being offered to a larger student base and the greater number of schools and learning centers in operation.
Selling and marketing expenses for the quarter were US$6.9 million, a 90.8% increase year-over-year, primarily due to brand promotion expenses for specific programs and headcount increases due to a rapidly expanding network of learning centers. The Company spent over US$1.3 million in the quarter to (i) launch the new U-Can gaokao test preparation and middle school tutoring brand, and (ii) promote the Company’s IELTS program (English proficiency test used by countries such as the United Kingdom and Australia for undergraduate and graduate admissions evaluations) which led to an over 55% increase in IELTS enrollments for the quarter compared to the year ago period. In addition, the headcount for the selling and marketing department increased by 364 over the year ago period as marketing staff, which includes registration verification personnel, are needed at each of the Company’s 181 schools and learning centers, which increased by 53 from the year ago period.
General and administrative expenses for the quarter were US$12.5 million, a 50.5% increase year-over-year; excluding share-based compensation expenses, general and administrative expenses (non-GAAP) for the quarter were US$10.3 million, a 35.0% increase year-over-year, primarily due to increased headcount as the Company expands its network of schools and learning centers.
Total share-based compensation expenses, which were allocated to related operating costs and expenses, increased to US$2.3 million in the third quarter of fiscal year 2008 from US$0.7 million in the year ago period.
Income from operations for the quarter was US$10.2 million, a 46.1% increase from US$7.0 million in the year ago period, and income from operations excluding share-based compensation expenses (non-GAAP) for the quarter was US$12.5 million, a 62.6% increase from US$7.7 million in the year ago period.
Operating margin for the quarter was 21.2%, compared to 21.3% in the corresponding period of the previous year. Excluding share-based compensation expenses, operating margin (non-GAAP) for the quarter was 25.9%, compared to 23.4% in the corresponding period of the prior year. This increase was primarily due to the improved operating efficiency as revenue growth outpaced the growth in operating costs and expenses.
Net income for the quarter was US$11.6 million, a 38.1% increase year-over-year. Basic and diluted earnings per common share amounted to US$0.08 and US$0.07, respectively, and basic and diluted earnings per ADS were US$0.31 and US$0.29, respectively. Excluding share-based compensation expenses, net income (non-GAAP) for the quarter was US$13.9 million, a 52.7% increase year-over-year. Basic and diluted earnings per ADS excluding share-based compensation expenses (non-GAAP) were US$0.37 and US$0.35, respectively.
Capital expenditures for the quarter were US$4.2 million which was primarily used (i) to add a net 17 new learning centers, (ii) for maintenance expenditures for a greater number of schools and learning centers in operation (181, up from 128 in the year ago period), and (iii) for remodeling decorations on some older schools and learning centers.
As of February 29, 2008, New Oriental had cash and cash equivalents of US$230.1 million, as compared to US$246.8 million as of November 30, 2007. Net operating cash flow for the third quarter of fiscal year 2008 was US$16.3 million.
Financial Results for the Nine Months Ended February 29, 2008
For the nine months ended February 29, 2008, New Oriental reported net revenues of US$160.8 million, a 49.1% increase year-over-year.
Total student enrollments in language training and test preparation courses in the nine months ended February 29, 2008 increased by 28.1% year-over-year to approximately 966,500 from approximately 754,300 in the nine months ended February 28, 2007.
Income from operations in the nine months ended February 29, 2008 was US$45.4 million, a 53.3% increase year-over-year. Income from operations excluding share-based compensation expenses (non-GAAP) in the nine months ended February 29, 2008 was US$51.4 million, a 60.7% increase year-over-year.
Operating margin for the nine months ended February 29, 2008 was 28.2%, compared to 27.4% for the nine months ended February 28, 2007; excluding share-based compensation expenses, operating margin (non-GAAP) for the nine months ended February 29, 2008 was 32.0%, compared to 29.6% for the nine months ended February 28, 2007.
Net income for the nine months ended February 29, 2008 was US$47.3 million, a 56.8% increase year-over-year. Basic and diluted earnings per ADS for the nine months ended February 29, 2008 were US$1.26 and US$1.21, respectively.
Net income excluding share-based compensation expenses (non-GAAP) for the nine months ended February 29, 2008 was US$53.2 million, representing a 63.8% increase year-over-year. Basic and diluted earnings per ADS excluding share-based compensation expenses (non-GAAP) for the nine months ended February 29, 2008 were US$1.42 and US$1.36, respectively.
Outlook for Fourth Quarter of Fiscal Year 2008
New Oriental expects its total net revenues in the fourth quarter of fiscal year 2008 (March 1, 2008 to May 31, 2008) to be in the range of US$32.1 million to US$33.4 million, representing year-over-year growth in the range of 29% to 34%, respectively. This forecast reflects New Oriental’s current and preliminary view, which is subject to change.
Change in Reporting Currency to the U.S. Dollar
Effective December 1, 2007, New Oriental changed its reporting currency to the U.S. Dollar (US$). The change in reporting currency is to better reflect the Company’s performance and to improve investors’ ability to compare the Company’s financial results with other publicly traded companies in the education industry. Prior to December 1, 2007, the Company reported its annual and quarterly consolidated balance sheets and consolidated statements of operations and shareholders’ equity and cash flows in RMB. In this announcement, the unaudited financial results at and for the quarter and for the nine months ended February 29, 2008 are stated in US$. The related financial statements and corresponding notes prior to December 1, 2007 have been restated to reflect US$ as the reporting currency for comparison to the financial results for the third fiscal quarter ended February 29, 2008.
Conference Call Information
New Oriental’s management will host an earnings conference call at 8:00 AM on April 16, 2008 U.S. Eastern Time (8:00 PM on April 16, 2008 Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as follows:
US: +1-617-213-8843
Hong Kong: +852-3002-1672
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 April 23, 2008:
International: +1-617-801-6888
Passcode: 47274026
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 fourth quarter of fiscal year 2008 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 growth strategies; our future business development, results of operations and financial condition; 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; and Chinese governmental policies relating to private educational services and providers of such services. Further information regarding these and other risks is included in our registration statement on Form F-1 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 April 16, 2008, 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, income from operations 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 earnings 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 "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 expenses that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from 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 non-GAAP net income excluding share-based compensation expenses, and basic and diluted earnings per share and per ADS excluding share-based compensation expenses is that these non-GAAP measures 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.
-- Financial Tables to Follow --
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
As of As of
February 29 November 30
2008 2007
(Unaudited) (Unaudited)
USD USD
ASSETS:
Current assets:
Cash and cash equivalents 230,090 246,804
Restricted cash 490 414
Term deposits 29,998 2,505
Accounts receivable, net 1,157 868
Inventory 9,365 7,670
Prepaid expenses and other current
assets 10,161 8,019
Total current assets 281,261 266,280
Property, plant and equipment, net 99,519 94,166
Land use right, net 3,443 3,335
Amounts due from related parties 20 80
Deferred tax assets 1,002 1,073
Trade mark 230 222
Long term investment 2 2
Total assets 385,477 365,158
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities: --
Accounts payable-trade 8,059 7,235
Accrued expenses and other current
liabilities 23,361 20,414
Income tax payable 5,312 4,676
Amount due to related parties 13 13
Deferred revenue 35,794 37,745
Total current liabilities 72,539 70,083
Total liabilities 72,539 70,083
Minority interest 186 218
Total shareholders’ equity 312,752 294,857
Total liabilities and shareholders’
equity 385,477 365,158
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
Months Ended Months Ended
February 29 February 28
2008 2007
(Unaudited) (Unaudited)
USD USD
Net Revenues:
Educational Programs and services 44,555 30,850
Books and others 3,543 1,903
Total net revenues 48,098 32,753
Operating costs and expenses (note 1):
Cost of revenues 18,475 13,836
Selling and marketing 6,942 3,638
General and administrative 12,501 8,309
Total operating costs and expenses 37,918 25,783
Operating income (loss) 10,180 6,970
Other income (expenses), net 2,303 1,484
Provision for income taxes (922) (101)
Minority interest, net of taxes 42 46
Net Income 11,603 8,399
Net income per share-basic 0.08 0.06
Net income per share-diluted 0.07 0.06
Net income per ADS-basic (note 2) 0.31 0.23
Net income per ADS-diluted (note 2) 0.29 0.22
Notes:
Note 1: Share-based compensation expenses (in thousands) are included in
the operating costs and expenses as follows:
For the Three For the Three
Months Ended Months Ended
February 29 February 28
2008 2007
(Unaudited) (Unaudited)
USD USD
Cost of revenues 60 31
Selling and marketing 59 13
General and administrative 2,164 651
Total 2,283 695
Note 2: 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 For the Three
Months Ended Months Ended
February 29 February 28
2008 2007
(Unaudited) (Unaudited)
USD USD
General and administrative expenses 12,501 8,309
Share-based compensation expense in
general and administrative expenses 2,164 651
Non-GAAP general and administrative
expenses 10,337 7,658
Total operating costs and expenses 37,918 25,783
Share-based compensation expenses 2,283 695
Non-GAAP operating costs and expenses 35,635 25,088
Operating income 10,180 6,970
Share-based compensation expenses 2,283 695
Non-GAAP operating income 12,463 7,665
Operating margin 21.2% 21.3%
Non-GAAP operating margin 25.9% 23.4%
Net income 11,603 8,399
Share-based compensation expense 2,283 695
Non-GAAP net income 13,886 9,094
Net income per ADS - basic (note 1) 0.31 0.23
Net income per ADS - diluted (note 1) 0.29 0.22
Non-GAAP net income per ADS - basic
(note 1) 0.37 0.25
Non-GAAP net income per ADS - diluted
(note 1) 0.35 0.24
Weighted average shares used in
calculating basic net income per ADS
(note 1) 150,657,358 146,143,021
Weighted average shares used in
calculating diluted net income per
ADS (note 1) 157,333,384 152,238,305
Note 1: Each ADS represents four common shares
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for per share and per ADS amounts)
For the Nine For the Nine
Months Ended Months Ended
February 29 February 28
2008 2007
(Unaudited) (Unaudited)
USD USD
Net Revenues:
Educational Programs and services 148,691 101,646
Books and others 12,144 6,243
Total net revenues 160,835 107,889
Operating costs and expenses (note 1):
Cost of revenues 59,550 42,035
Selling and marketing 18,125 11,552
General and administrative 37,769 24,700
Total operating costs and expenses 115,444 78,287
Operating income 45,391 29,602
Other income (expenses), net 6,182 2,259
Provision for income taxes (4,450) (1,816)
Minority interest, net of taxes 128 91
Net Income 47,251 30,136
Net income per share-basic 0.32 0.23
Net income per share-diluted 0.30 0.22
Net income per ADS-basic (note 2) 1.26 0.93
Net income per ADS-diluted (note 2) 1.21 0.88
Notes:
Note 1: Share-based compensation expenses (in thousands) are included in
the operating costs and expenses as follows:
For the Nine For the Nine
Months Ended Months Ended
February 29 February 28
2008 2007
(Unaudited) (Unaudited)
USD USD
Cost of revenues 501 46
Selling and marketing 185 43
General and administrative 5,310 2,287
Total 5,996 2,376
Note 2: 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 Nine For the Nine
Months Ended Months Ended
February 29 February 28
2008 2007
(Unaudited)
USD USD
General and administrative expenses 37,769 24,700
Share-based compensation expense in
general and administrative expenses 5,310 2,287
Non-GAAP general and administrative
expenses 32,459 22,413
Total operating costs and expenses 115,444 78,287
Share-based compensation expenses 5,996 2,376
Non-GAAP operating costs and expenses 109,448 75,911
Operating income 45,391 29,602
Share-based compensation expenses 5,996 2,376
Non-GAAP operating income 51,387 31,978
Operating margin 28.2% 27.4%
Non-GAAP operating margin 32.0% 29.6%
Net income 47,251 30,136
Share-based compensation expense 5,996 2,376
Non-GAAP net income 53,247 32,512
Net income per ADS - basic (note 1) 1.26 0.93
Net income per ADS - diluted (note 1) 1.21 0.88
Non-GAAP net income per ADS - basic
(note 1) 1.42 1.00
Non-GAAP net income per ADS - diluted
(note 1) 1.36 0.94
Weighted average shares used in
calculating basic net income per ADS
(note 1) 149,997,779 129,413,247
Weighted average shares used in
calculating diluted net income per
ADS (note 1) 156,839,600 137,720,319
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: +86-10-6260-5566 x8203
Email: zhaosisi@staff.neworiental.org
Mr. Derek Mitchell
Ogilvy Public Relations Worldwide (Beijing)
Tel: +86-10-8520-6284
Email: derek.mitchell@ogilvy.com
In the United States:
Mr. Jeremy Bridgman
Ogilvy Public Relations Worldwide (New York)
Tel: +1-212-880-5363
Email: jeremy.bridgman@ogilvypr.com
