- 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
Highlights for the Fourth Quarter of Fiscal Year 2019
- Net revenues increased by 44.1% year-over-year to
US$726.6 million fromUS$504.1 million in the same period of the prior year. - Income from operations increased by 71.5% to
US$114.7 million fromUS$66.9 million in the same period of the prior year. - Non-GAAP income from operations, which excluded share-based compensation expenses, increased by 72.4% to
US$137.0 million fromUS$79.5 million in the same period of the prior year. - Net income attributable to TAL increased by 43.2% to
US$99.6 million fromUS$69.5 million in the same period of the prior year. - Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, increased by 48.4% to
US$121.9 million fromUS$82.1 million in the same period of the prior year. - Basic and diluted net income per American Depositary Share ("ADS") were both
US$0.17 . Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, wereUS$0.21 andUS$0.20 , respectively. Three ADSs represent one Class A common share. - Cash, cash equivalents and short-term investments totaled
US$1,515.6 million as ofFebruary 28, 2019 , compared toUS$1,498.9 million as ofFebruary 28, 2018 . - Total student enrollments increased by 71.2% year-over-year to approximately 4,478,730 from approximately 2,615,760 in the same period of the prior year.
Highlights for the Fiscal Year Ended
- Net revenues increased by 49.4% year-over-year to
US$2,563.0 million fromUS$1,715.0 million in fiscal year 2018. - Income from operations increased by 63.7% to
US$341.6 million fromUS$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 fromUS$255.8 million in fiscal year 2018. - Net income attributable to TAL increased by 85.1% year-over-year to
US$367.2 million fromUS$198.4 million in fiscal year 2018. - Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, increased by 81.0% year-over-year to
US$444.5 million fromUS$245.6 million in fiscal year 2018. - Basic and diluted net income per ADS were
US$0.64 andUS$0.61 , respectively. Non-GAAP basic and diluted net income per ADS, excluding share-based compensation expenses, wereUS$0.78 andUS$0.74 , respectively. - Average student enrollments per quarter in fiscal year 2019 increased by 87.8% year-over-year to approximately 3,498,040 from approximately 1,862,410 in fiscal year 2018.
- Total physical network increased from 594 learning centers in 42 cities as of
February 28, 2018 to 676 learning centers in 56 cities as ofFebruary 28, 2019 .
Financial and Operating Data——Fourth Quarter and Fiscal Year 2019 |
|||
(In US$ 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
Operating Costs and Expenses
In the fourth quarter of fiscal year 2019, operating costs and expenses were
Cost of revenues increased by 24.1% to
Selling and marketing expenses increased by 73.8% to
General and administrative expenses increased by 50.9% to
Total share-based compensation expenses allocated to the related operating costs and expenses increased by 76.8% to
Gross Profit
Gross profit increased by 63.3% to
Income from Operations
Income from operations increased by 71.5% to
Other income
Other income was
Impairment loss on long-term investments
Impairment loss on long-term investments was
Income Tax Expense
Income tax expense was
Net Income Attributable to
Net income attributable to TAL increased by 43.2% to
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were both
Capital Expenditures
Capital expenditures for the fourth quarter of fiscal year 2019 were
Cash, Cash Equivalents and Short-Term Investments
As of
Deferred Revenue
As of
Financial Results for the Fiscal Year Ended
Net Revenues
For fiscal year 2019, TAL reported net revenues of
Operating Costs and Expenses
In fiscal year 2019, operating costs and expenses were
Cost of revenues increased by 32.0% to
Selling and marketing expenses increased by 99.9% to
General and administrative expenses increased by 50.1% to
Total share-based compensation expenses allocated to the related operating costs and expenses increased by 63.9% to
Gross Profit
Gross profit increased by 68.0% to
Income from Operations
Income from operations increased by 63.7% to
Other income
Other income was US$131.7 million for fiscal year 2019, compared to other income of
Impairment loss on long-term investments
Impairment loss on long-term investments was
Income Tax Expense
Income tax expense was
Net Income Attributable to
Net income attributable to TAL increased by 85.1% to
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were US$0.64 and
Capital Expenditures
Capital expenditures for fiscal year 2019 were
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
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
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
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
About
We also operate www.jzb.com, a leading online education platform in
About Non-GAAP Financial Measures
In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the
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
Tel: +86 10 5292 6658
Email: ir@100tal.com
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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