- Quarterly Results:
Net Revenues up by 44.1% Year-Over-Year
Income from Operations up by 71.5% Year-Over-Year
Non-GAAP Income from Operations up by 72.4% Year-Over-Year
Total Student Enrollments up by 71.2% Year-Over-Year
- Fiscal Year Results:
Net Revenues up by 49.4%
Income from Operations up by 63.7%
Non-GAAP Income from Operations up by 63.8%
Average Student Enrollments up by 87.8% Year-Over-Year
BEIJING, April 25, 2019 /PRNewswire/ -- TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a leading K-12 after-school tutoring services provider in China, today announced its unaudited financial results for the fourth quarter and the fiscal year ended February 28, 2019.
Highlights for the Fourth Quarter of Fiscal Year 2019
Highlights for the Fiscal Year Ended February 28, 2019
Financial and Operating Data——Fourth Quarter and Fiscal Year 2019 |
|||
(In US$ thousands, except per ADS data, student enrollments and percentages) |
|||
Three Months Ended |
|||
February 28, |
|||
2018 |
2019 |
Pct. Change |
|
Net revenues |
504,098 |
726,561 |
44.1% |
Operating income |
66,876 |
114,706 |
71.5% |
Non-GAAP operating income |
79,475 |
136,981 |
72.4% |
Net income attributable to TAL |
69,539 |
99,612 |
43.2% |
Non-GAAP net income attributable |
82,138 |
121,887 |
48.4% |
Net income per ADS attributable to |
0.13 |
0.17 |
38.9% |
Net income per ADS attributable to |
0.12 |
0.17 |
40.6% |
Non-GAAP net income per ADS |
0.15 |
0.21 |
43.8% |
Non-GAAP net income per ADS |
0.14 |
0.20 |
45.7% |
Total student enrollments |
2,615,760 |
4,478,730 |
71.2% |
Fiscal Year Ended |
|||
February 28, |
|||
2018 |
2019 |
Pct. Change |
|
Net revenues |
1,715,016 |
2,562,984 |
49.4% |
Operating income |
208,604 |
341,582 |
63.7% |
Non-GAAP operating income |
255,754 |
418,859 |
63.8% |
Net income attributable to TAL |
198,440 |
367,236 |
85.1% |
Non-GAAP net income attributable to |
245,590 |
444,513 |
81.0% |
Net income per ADS attributable to |
0.38 |
0.64 |
70.5% |
Net income per ADS attributable to |
0.34 |
0.61 |
77.5% |
Non-GAAP net income per ADS |
0.47 |
0.78 |
66.7% |
Non-GAAP net income per ADS |
0.43 |
0.74 |
74.0% |
Average student enrollments per |
1,862,410 |
3,498,040 |
87.8% |
"We are pleased to report solid financial and operational progress in the fiscal fourth quarter as well as in fiscal year 2019. Our overall education program is proceeding as planned with healthily paced growth in online business and measured capacity expansion in our learning center and geographic network," said Mr. Rong Luo, TAL's Chief Financial Officer.
"Looking ahead, we will continue to invest in new education technology and develop more diversified course offerings to combine growth with improved efficiencies and better meet the demand from students in different tiers of cities. Ongoing innovations of our online and offline education programs enable us to train more students in smarter ways, in a shorter time and therefore at reduced cost, and with quality results," Mr. Luo explained.
Financial Results for the Fourth Quarter of Fiscal Year 2019
Net Revenues
In the fourth quarter of fiscal year 2019, TAL reported net revenues of US$726.6 million, representing a 44.1% increase from US$504.1 million in the fourth quarter of fiscal year 2018. The increase was mainly driven by an increase in total student enrollments, which increased by 71.2% to approximately 4,478,730 from approximately 2,615,760 in the same period of the prior year. The increase in total student enrollments was driven primarily by promotions in small class and online courses.
Operating Costs and Expenses
In the fourth quarter of fiscal year 2019, operating costs and expenses were US$611.9 million, a 39.9% increase from US$437.4 million in the fourth quarter of fiscal year 2018. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$589.6 million, a 38.8% increase from US$424.8 million in the fourth quarter of fiscal year 2018.
Cost of revenues increased by 24.1% to US$306.2 million, from US$246.7 million in the fourth quarter of fiscal year 2018. The increase in cost of revenues was mainly due to an increase in teacher compensation and rental costs. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 24.1% to US$306.0 million from US$246.6 million in the fourth quarter of fiscal year 2018.
Selling and marketing expenses increased by 73.8% to US$136.2 million from US$78.3 million in the fourth quarter of fiscal year 2018. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 72.5% to US$132.9 million from US$77.0 million in the fourth quarter of fiscal year 2018. The increase in selling and marketing expenses in the fourth quarter of fiscal year 2019 was primarily a result of more marketing promotion activities to expand our customer base and brand enhancement, as well as a rise in the compensation to sales and marketing staff to support a greater number of programs and service offerings compared to the same period in the prior year.
General and administrative expenses increased by 50.9% to US$169.6 million from US$112.3 million in the fourth quarter of fiscal year 2018. The increase in general and administrative expenses was mainly due to an increase of the number of our general and administrative personnel compared to the same period in the prior year and a rise in compensation to our general and administrative personnel. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 49.0% to US$150.8 million from US$101.2 million in the fourth quarter of fiscal year 2018.
Total share-based compensation expenses allocated to the related operating costs and expenses increased by 76.8% to US$22.3 million in the fourth quarter of fiscal year 2019 from US$12.6 million in the same period of fiscal year 2018.
Gross Profit
Gross profit increased by 63.3% to US$420.4 million from US$257.4 million in the fourth quarter of fiscal year 2018.
Income from Operations
Income from operations increased by 71.5% to US$114.7 million from US$66.9 million in the fourth quarter of fiscal year 2018. Non-GAAP income from operations, which excluded share-based compensation expenses, increased by 72.4% to US$137.0 million from US$79.5 million in the fourth quarter of fiscal year 2018.
Other income
Other income was US$24.7 million in the fourth quarter of fiscal year 2019, mainly due to gains from the fair value change of an equity security with readily determinable fair value and remeasuring the fair value of the previously held equity interests during a business combination achieved in stages.
Impairment loss on long-term investments
Impairment loss on long-term investments was US$7.2 million in the fourth quarter of fiscal year 2019, compared to nil in the fourth quarter of fiscal year 2018. Impairment loss on long-term investments was mainly due to other-than-temporary declines in the value of long-term investments in several investees.
Income Tax Expense
Income tax expense was US$33.2 million in the fourth quarter of fiscal year 2019, compared to US$8.7 million in the fourth quarter of fiscal year 2018.
Net Income Attributable to TAL Education Group
Net income attributable to TAL increased by 43.2% to US$99.6 million from US$69.5 million in the fourth quarter of fiscal year 2018. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, increased by 48.4% to US$121.9 million from US$82.1 million in the fourth quarter of fiscal year 2018.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were both US$0.17 in the fourth quarter of fiscal year 2019. Non-GAAP basic and Non-GAAP diluted net income per ADS, which excluded share-based compensation expenses, were US$0.21 and US$0.20, respectively.
Capital Expenditures
Capital expenditures for the fourth quarter of fiscal year 2019 were US$209.1 million, an increase of US$178.3 million from US$30.8 million in the fourth quarter of fiscal year 2018. The increase was mainly due to the purchase of land use rights, leasehold improvements and the purchase of servers, computers, software systems and other hardware for the Company's teaching facilities and mobile network research and development activities.
Cash, Cash Equivalents and Short-Term Investments
As of February 28, 2019, the Company had US$1,247.1 million of cash and cash equivalents and US$268.4 million of short-term investments, compared to US$711.5 million of cash and cash equivalents and US$787.4 million of short-term investments as of February 28, 2018.
Deferred Revenue
As of February 28, 2019, the Company's deferred revenue balance was US$436.1 million, compared to US$842.3 million as of February 28, 2018, representing a year-over-year decrease of 48.2% mainly due to the change of tuition fees collection schedule to meet certain regulatory requirement and the adoption of Revenue from Contracts with Customers ("Topic 606") beginning on March 1, 2018.
Financial Results for the Fiscal Year Ended February 28, 2019
Net Revenues
For fiscal year 2019, TAL reported net revenues of US$2,563.0 million, representing a 49.4% increase from US$1,715.0 million in fiscal year 2018. The increase was mainly driven by an increase in total student enrollments. Average student enrollments per quarter increased by 87.8% to approximately 3,498,040 from approximately 1,862,410 in the prior year. The increase in total student enrollments was driven primarily by the growth of enrollments in the small class offerings and online courses.
Operating Costs and Expenses
In fiscal year 2019, operating costs and expenses were US$2,228.1 million, a 47.5% increase from US$1,511.1 million in fiscal year 2018. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$2,150.8 million, a 46.9% increase from US$1,463.9 million in fiscal year 2018.
Cost of revenues increased by 32.0% to US$1,164.5 million from US$882.3 million in fiscal year 2018. The increase in cost of revenues was mainly due to an increase in teacher compensation and rental costs. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 32.0% to US$1,163.7 million from US$882.0 million in fiscal year 2018.
Selling and marketing expenses increased by 99.9% to US$484.0 million from US$242.1 million in fiscal year 2018. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 99.8% to US$473.5 million from US$237.1 million in fiscal year 2018. The increase in selling and marketing expenses in fiscal year 2019 was primarily a result of more marketing promotion activities to expand our customer base and brand enhancement, as well as a rise in the compensation to sales and marketing staff to support a greater number of programs and service offerings compared to the same period in the prior year.
General and administrative expenses increased by 50.1% to US$579.7 million from US$386.3 million in fiscal year 2018. The increase in general and administrative expenses was mainly due to an increase of the number of our general and administrative personnel compared to the same period in the prior year and a rise in compensation to our general and administrative personnel. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 49.1% to US$513.6 million from US$344.5 million in fiscal year 2018.
Total share-based compensation expenses allocated to the related operating costs and expenses increased by 63.9% to US$77.3 million in fiscal year 2019 from US$47.1 million in fiscal year 2018.
Gross Profit
Gross profit increased by 68.0% to US$1,398.5 million from US$832.7 million in fiscal year 2018.
Income from Operations
Income from operations increased by 63.7% to US$341.6 million from US$208.6 million in fiscal year 2018. Non-GAAP income from operations, which excluded share-based compensation expenses, increased by 63.8% to US$418.9 million from US$255.8 million in fiscal year 2018.
Other income
Other income was US$131.7 million for fiscal year 2019, compared to other income of US$17.4 million for fiscal year 2018. Other income of fiscal year 2019 was mainly from the fair value changes of a long-term investment. The fair value changes of the long-term investment were transferred from accumulated other comprehensive income to other income as the investment was reclassified from available-for-sale investment to equity security with readily determinable fair value upon listing on the Hong Kong Exchange in November 2018.
Impairment loss on long-term investments
Impairment loss on long-term investments was US$58.1 million in fiscal year 2019, compared to US$2.2 million in fiscal year 2018. Impairment loss on long-term investments was mainly due to the other-than-temporary declines in the value of long-term investments in several investees.
Income Tax Expense
Income tax expense was US$76.5 million in fiscal year 2019, compared to US$44.7 million in fiscal year 2018.
Net Income Attributable to TAL Education Group
Net income attributable to TAL increased by 85.1% to US$367.2 million from US$198.4 million in fiscal year 2018. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, increased by 81.0% to US$444.5 million from US$245.6 million in fiscal year 2018.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were US$0.64 and US$0.61, respectively, in fiscal year 2019. Non-GAAP basic and Non-GAAP diluted net income per ADS, which excluded share-based compensation expenses, were US$0.78 and US$0.74, respectively.
Capital Expenditures
Capital expenditures for fiscal year 2019 were US$353.3million, an increase of US$227.0 million from US$126.3 million in fiscal year 2018. The increase was mainly due to the purchase of land use rights, leasehold improvements and the purchase of servers, computers, software systems and other hardware for the Company's teaching facilities and mobile network research and development activities.
Business Outlook
Based on the Company's current estimates, total net revenues for the first quarter of fiscal year 2020 are expected to be between US$ 699.3 million and US$ 710.3 million, representing an increase of 27% to 29% on a year-over-year basis. If not taking into consideration the impact of potential change in exchange rate between Renminbi and the U.S. Dollar, the projected revenue growth rate is expected to be in the range of 33% to 35% for the first quarter of fiscal year 2020.
These estimates reflect the Company's current expectation, which is subject to change.
Conference Call
The Company will host a conference call and live webcast to discuss its financial results for the fourth fiscal quarter and the fiscal year ended February 28, 2019 at 8:00 a.m. Eastern Time on April 25, 2019 (8:00 p.m. Beijing time on April 25, 2019).
The dial-in details for the live conference call are as follows:
- U.S. toll free: |
+1-866-519-4004 |
- Hong Kong toll free: |
800-906-601 |
- International toll: |
+65-6713-5090 |
Conference ID: |
7357907 |
A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at en.100tal.com.
A telephone replay of the conference call will be available through 9:59 a.m. U.S. Eastern time, May 3, 2019 (9:59 p.m. Beijing time, May 3, 2019).
The dial-in details for the replay are as follows:
- U.S. toll free: |
+1-855-452-5696 |
- Hong Kong toll free: |
800-963-117 |
- International toll: |
+61-2-8199-0299 |
Conference ID: |
7357907 |
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 first quarter of fiscal year 2020, quotations from management in this announcement, as well as TAL Education Group's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, 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 the Company'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: the Company's ability to continue to attract students to enroll in its courses; the Company's ability to continue to recruit, train and retain qualified teachers; the Company's ability to improve the content of its existing course offerings and to develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.
About TAL Education Group
TAL Education Group is a leading K-12 after-school tutoring services provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life", which reflects our vision to promote top learning opportunities for Chinese students through both high-quality teaching and content, as well as leading edge application of technology in the education experience. TAL Education Group offers comprehensive tutoring services to students from pre-school to the twelfth grade through three flexible class formats: small classes, personalized premium services, and online courses. Our tutoring services cover the core academic subjects in China's school curriculum as well as competence oriented programs. The Company's learning center network currently covers over 50 key cities in China.
We also operate www.jzb.com, a leading online education platform in China. Our ADSs trade on the New York Stock Exchange under the symbol "TAL".
About Non-GAAP Financial Measures
In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as supplemental metrics to review and assess its operating performance: non-GAAP operating costs and expenses, non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP income from operations, non-GAAP net income attributable to TAL, non-GAAP basic and non-GAAP diluted net income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from 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.
TAL 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. TAL 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 TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL 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 measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's 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.
For further information, please contact:
Echo Yan
Investor Relations
TAL Education Group
Tel: +86 10 5292 6658
Email: ir@100tal.com
Caroline Straathof
IR Inside
Tel: +31 6 5462 4301
Email: info@irinside.com
TAL EDUCATION GROUP |
|||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(In thousands of U.S. dollars) |
|||||
As of February 28, |
As of February 28, |
||||
ASSETS |
|||||
Current assets |
|||||
Cash and cash equivalents |
$ 711,519 |
$ 1,247,140 |
|||
Restricted cash-current |
6,267 |
9,227 |
|||
Short-term investments |
787,391 |
268,424 |
|||
Inventory |
5,272 |
7,750 |
|||
Amounts due from related parties-current |
3,229 |
3,341 |
|||
Income tax receivables |
15,093 |
7,204 |
|||
Prepaid expenses and other current assets |
133,235 |
202,630 |
|||
Total current assets |
1,662,006 |
1,745,716 |
|||
Restricted cash-non-current |
9,911 |
7,334 |
|||
Amounts due from related parties-non-current |
- |
1,747 |
|||
Property and equipment, net |
247,266 |
287,877 |
|||
Deferred tax assets-non-current |
17,361 |
29,179 |
|||
Rental deposits |
47,333 |
56,135 |
|||
Intangible assets, net |
43,505 |
74,776 |
|||
Goodwill |
291,382 |
414,228 |
|||
Long-term investments |
597,606 |
850,695 |
|||
Long-term prepayments and other non-current assets |
138,190 |
267,404 |
|||
Total assets |
$ 3,054,560 |
$ 3,735,091 |
|||
LIABILITIES AND EQUITY |
|||||
Current liabilities |
|||||
Accounts payable (including accounts payable of the |
$ 57,605 |
$ 106,493 |
|||
Deferred revenue-current (including deferred revenue- |
824,276 |
433,610 |
|||
Amounts due to related parties-current (including amounts |
8,746 |
24,375 |
|||
Accrued expenses and other current liabilities (including |
229,122 |
365,195 |
|||
Income tax payable (including income tax payable of the |
13,638 |
38,743 |
|||
Short-term debt and current portion of long-term debt |
- |
210,027 |
|||
Bond payable, current portion (including bond payable,
|
- |
5,275 |
|||
Total current liabilities |
1,133,387 |
1,183,718 |
|||
Deferred revenue-non-current (including deferred revenue- |
17,980 |
2,497 |
|||
Amounts due to related parties-non-current (including |
271 |
196 |
|||
Deferred tax liabilities-non-current (including deferred tax |
20,039 |
17,738 |
|||
Bond payable (including bond payable of the consolidated |
11,075 |
- |
|||
Long-term payable (including long-term payable of the |
6,344 |
465 |
|||
Long-term debt (including long-term debt of the |
225,000 |
- |
|||
Total liabilities |
1,414,096 |
1,204,614 |
|||
TAL Education Group Shareholders' Equity |
|||||
Class A common shares |
118 |
127 |
|||
Class B common shares |
71 |
71 |
|||
Class A common shares issuable |
- |
1,977 |
|||
Additional paid-in capital |
884,717 |
1,485,521 |
|||
Statutory reserve |
38,315 |
58,690 |
|||
Retained earnings |
565,202 |
920,314 |
|||
Accumulated other comprehensive income |
132,325 |
17,047 |
|||
Total TAL Education Group's equity |
1,620,748 |
2,483,747 |
|||
Noncontrolling interest |
19,716 |
46,730 |
|||
Total equity |
1,640,464 |
2,530,477 |
|||
Total liabilities and equity |
$ 3,054,560 |
$ 3,735,091 |
|||
TAL EDUCATION GROUP |
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(In thousands of U.S. dollars, except share, ADS, per share and per ADS data) |
|||||||
For the Three Months Ended |
For the Fiscal Year Ended |
||||||
2018 |
2019 |
2018 |
2019 |
||||
Net revenues |
$ 504,098 |
$ 726,561 |
$ 1,715,016 |
$ 2,562,984 |
|||
Cost of revenues (note 1) |
246,680 |
306,174 |
882,316 |
1,164,454 |
|||
Gross profit |
257,418 |
420,387 |
832,700 |
1,398,530 |
|||
Operating expenses (note 1) |
|||||||
Selling and marketing |
78,347 |
136,196 |
242,102 |
484,000 |
|||
General and administrative |
112,344 |
169,553 |
386,287 |
579,672 |
|||
Impairment loss on intangible |
- |
- |
358 |
- |
|||
Total operating expenses |
190,691 |
305,749 |
628,747 |
1,063,672 |
|||
Government subsidies |
149 |
68 |
4,651 |
6,724 |
|||
Income from operations |
66,876 |
114,706 |
208,604 |
341,582 |
|||
Interest income |
13,353 |
10,285 |
39,837 |
59,614 |
|||
Interest expense |
(3,639) |
(5,747) |
(16,640) |
(17,628) |
|||
Other income |
3,230 |
24,706 |
17,406 |
131,727 |
|||
Impairment loss on long-term |
- |
(7,247) |
(2,213) |
(58,091) |
|||
Income before provision for |
79,820 |
136,703 |
246,994 |
457,204 |
|||
Provision for income tax |
(8,711) |
(33,236) |
(44,653) |
(76,504) |
|||
Loss from equity method |
(2,640) |
(5,114) |
(7,678) |
(16,186) |
|||
Net income |
$ 68,469 |
$ 98,353 |
$ 194,663 |
$ 364,514 |
|||
Add: Net loss attributable to |
1,070 |
1,259 |
3,777 |
2,722 |
|||
Total net income attributable |
$ 69,539 |
$ 99,612 |
$ 198,440 |
$ 367,236 |
|||
Net income per common share |
|||||||
Basic |
$ 0.38 |
$ 0.52 |
$ 1.13 |
$ 1.93 |
|||
Diluted |
0.35 |
0.50 |
1.03 |
1.83 |
|||
Net income per ADS (note 2) |
|||||||
Basic |
$ 0.13 |
$ 0.17 |
$ 0.38 |
$ 0.64 |
|||
Diluted |
0.12 |
0.17 |
0.34 |
0.61 |
|||
Weighted average shares used in |
|||||||
Basic |
185,165,815 |
191,020,638 |
174,979,574 |
189,951,643 |
|||
Diluted |
197,095,699 |
200,670,945 |
194,331,305 |
200,224,934 |
|||
Note1: Share-based compensation expenses are included in the operating costs and expenses as follows: |
|||||||
For the Three Months |
For the Fiscal Year |
||||||
Ended February 28, |
Ended February 28, |
||||||
2018 |
2019 |
2018 |
2019 |
||||
Cost of revenues |
$ 112 |
$ 200 |
$ 366 |
$ 706 |
|||
Selling and marketing |
1,331 |
3,331 |
5,037 |
10,454 |
|||
General and administrative |
11,156 |
18,744 |
41,747 |
66,117 |
|||
Total |
$12,599 |
$ 22,275 |
$ 47,150 |
$ 77,277 |
|||
Note 2: Three ADSs represent one Class A common Share. |
|||||||
TAL EDUCATION GROUP |
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF |
|||||||
(In thousands of U.S. dollars) |
|||||||
For the Three Months Ended February 28, |
For the Fiscal Year Ended February 28, |
||||||
2018 |
2019 |
2018 |
2019 |
||||
Net income |
$ 68,469 |
$ 98,353 |
$ 194,663 |
$ 364,514 |
|||
Other comprehensive |
59,597 |
53,507 |
77,780 |
(116,237) |
|||
Comprehensive income |
128,066 |
151,860 |
272,443 |
248,277 |
|||
Add: Comprehensive |
(254) |
694 |
2,453 |
3,681 |
|||
Comprehensive income |
$127,812 |
$ 152,554 |
$ 274,896 |
$ 251,958 |
|||
TAL EDUCATION GROUP |
||||||||
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures |
||||||||
(In thousands of U.S. dollars, except share, ADS, per share and per ADS data) |
||||||||
For the Three Months Ended February 28, |
For the Fiscal Year |
|||||||
2018 |
2019 |
2018 |
2019 |
|||||
Cost of revenues |
$ 246,680 |
$ 306,174 |
$ 882,316 |
$ 1,164,454 |
||||
Share-based compensation |
112 |
200 |
366 |
706 |
||||
Non-GAAP cost of revenues |
246,568 |
305,974 |
881,950 |
1,163,748 |
||||
Selling and marketing expenses |
78,347 |
136,196 |
242,102 |
484,000 |
||||
Share-based compensation |
1,331 |
3,331 |
5,037 |
10,454 |
||||
Non-GAAP selling and |
77,016 |
132,865 |
237,065 |
473,546 |
||||
General and administrative |
112,344 |
169,553 |
386,287 |
579,672 |
||||
Share-based compensation |
11,156 |
18,744 |
41,747 |
66,117 |
||||
Non-GAAP general and |
101,188 |
150,809 |
344,540 |
513,555 |
||||
Operating costs and expenses |
437,371 |
611,923 |
1,511,063 |
2,228,126 |
||||
Share-based compensation |
12,599 |
22,275 |
47,150 |
77,277 |
||||
Non-GAAP operating costs and |
424,772 |
589,648 |
1,463,913 |
2,150,849 |
||||
Income from operations |
66,876 |
114,706 |
208,604 |
341,582 |
||||
Share based compensation |
12,599 |
22,275 |
47,150 |
77,277 |
||||
Non-GAAP income from |
79,475 |
136,981 |
255,754 |
418,859 |
||||
Net income attributable to TAL |
69,539 |
99,612 |
198,440 |
367,236 |
||||
Share based compensation expenses |
12,599 |
22,275 |
47,150 |
77,277 |
||||
Non-GAAP net income |
$ 82,138 |
$ 121,887 |
$ 245,590 |
$ 444,513 |
||||
Net income per ADS |
||||||||
Basic |
$ 0.13 |
$ 0.17 |
$ 0.38 |
$ 0.64 |
||||
Diluted |
0.12 |
0.17 |
0.34 |
0.61 |
||||
Non-GAAP net income per |
||||||||
Basic |
$ 0.15 |
$ 0.21 |
$ 0.47 |
$ 0.78 |
||||
Diluted |
0.14 |
0.20 |
0.43 |
0.74 |
||||
ADSs used in calculating net |
||||||||
Basic |
555,497,445 |
573,061,914 |
524,938,722 |
569,854,929 |
||||
Diluted |
591,287,098 |
602,012,835 |
582,993,914 |
600,674,802 |
||||
Note 3: The Non-GAAP adjusted net income per ADS is computed using Non-GAAP adjusted net |
||||||||
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