- Quarterly Results:
Net Revenues up by 58.9% Year-Over-Year for the Fourth Fiscal Quarter
Non-GAAP Loss from Operations wasUS$216.9 million , compared to Non-GAAP Loss from Operations ofUS$8.4 million in the Same Period of Prior Year
Total Student Enrollments of Normal Priced Long-term Course up by 44.0% Year-Over-Year - Fiscal Year Results:
Net Revenues up by 37.3%
Non-GAAP Loss from Operations wasUS$233.3 million , compared to Non-GAAP Income from Operations ofUS$255.4 million in Fiscal Year 2020
Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, wasUS$89.0 million , compared to non-GAAP net income attributable to TAL ofUS$7.7 million in fiscal year 2020
Quarterly Average Student Enrollments of Normal Priced Long-term Course up by 54.4% Year-Over-Year
Highlights for the Fourth Quarter of Fiscal Year 2021
- Net revenues increased by 58.9% year-over-year to
US$1,362.7 million fromUS$857.7 million in the same period of the prior year. - Loss from operations was
US$297.2 million , compared to loss from operations ofUS$41.3 million in the same period of the prior year. - Non-GAAP loss from operations, which excluded share-based compensation expenses, was
US$216.9 million , compared to non-GAAP loss from operations ofUS$8.4 million in the same period of the prior year. - Net loss attributable to TAL was
US$169.0 million , compared to net loss attributable to TAL ofUS$90.1 million in the same period of the prior year. - Non-GAAP net loss attributable to TAL, which excluded share-based compensation expenses, was
US$88.7 million , compared to non-GAAP net loss attributable to TAL ofUS$57.2 million in the same period of the prior year. - Basic and diluted net loss per American Depositary Share ("ADS") were both
US$0.27 . Non-GAAP basic and diluted net loss per ADS, which excluded share-based compensation expenses, were bothUS$0.14 . Three ADSs represent one Class A common share. - Cash, cash equivalents and short-term investments totaled
US$5,937.5 million as ofFebruary 28, 2021 , compared toUS$2,219.3 million as ofFebruary 29, 2020 . - Total student enrollments of normal priced long-term course increased by 44.0% year-over-year to approximately 6,690,950 from approximately 4,646,040 in the same period of the prior year.
Highlights for the Fiscal Year Ended
- Net revenues increased by 37.3% year-over-year to
US$4,495.8 million fromUS$3,273.3 million in fiscal year 2020. - Loss from operations was
US$438.2 million , compared to income from operations ofUS$137.4 million in fiscal year 2020. - Non-GAAP loss from operations, which excluded share-based compensation expenses, was
US$233.3 million , compared to non-GAAP income from operations ofUS$255.4 million in fiscal year 2020. - Net loss attributable to TAL was
US$116.0 million , compared to net loss attributable to TAL ofUS$110.2 million in fiscal year 2020. - Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was
US$89.0 million , compared to non-GAAP net income attributable to TAL ofUS$7.7 million in fiscal year 2020. - Basic and diluted net loss per ADS were both
US$0.19 . Non-GAAP basic and diluted net income per ADS, excluding share-based compensation expenses, wereUS$0.15 andUS$0.14 , respectively. - Average student enrollments of normal priced long-term course per quarter during fiscal year 2021 increased by 54.4% year-over-year to approximately 4,669,140 from approximately 3,023,840 in fiscal year 2020.
- Total physical network increased from 871 learning centers in 70 cities as of
February 29, 2020 to 1,098 learning centers in 110 cities as ofFebruary 28, 2021 .
Financial and Operating Data——Fourth Quarter and Fiscal Year 2021 |
|||
(In US$ thousands, except per ADS data, student enrollments and percentages) |
|||
Three Months Ended |
|||
February 29/28, |
|||
2020 |
2021 |
Pct. Change |
|
Net revenues |
857,682 |
1,362,689 |
58.9% |
Operating loss |
(41,256) |
(297,210) |
620.4% |
Non-GAAP operating loss |
(8,392) |
(216,872) |
2,484.3% |
Net loss attributable to TAL |
(90,074) |
(169,002) |
87.6% |
Non-GAAP net loss attributable to TAL |
(57,210) |
(88,664) |
55.0% |
Net loss per ADS attributable to TAL – basic |
(0.15) |
(0.27) |
76.0% |
Net loss per ADS attributable to TAL – diluted |
(0.15) |
(0.27) |
76.0% |
Non-GAAP net loss per ADS attributable to TAL – |
(0.10) |
(0.14) |
45.4% |
Non-GAAP net loss per ADS attributable to TAL – |
(0.10) |
(0.14) |
45.4% |
Total Student Enrollments of normal priced long-term |
4,646,040 |
6,690,950 |
44.0% |
Fiscal Year Ended |
|||
February 29/28, |
|||
2020 |
2021 |
Pct. Change |
|
Net revenues |
3,273,308 |
4,495,755 |
37.3% |
Operating income/(loss) |
137,443 |
(438,224) |
(418.8%) |
Non-GAAP operating income/(loss) |
255,386 |
(233,279) |
(191.3%) |
Net loss attributable to TAL |
(110,195) |
(115,990) |
5.3% |
Non-GAAP net income attributable to TAL |
7,748 |
88,955 |
1,048.1% |
Net loss per ADS attributable to TAL – basic |
(0.19) |
(0.19) |
2.5% |
Net loss per ADS attributable to TAL – diluted |
(0.19) |
(0.19) |
2.5% |
Non-GAAP net income per ADS attributable to TAL – |
0.01 |
0.15 |
1,017.5% |
Non-GAAP net income per ADS attributable to TAL – |
0.01 |
0.14 |
1,024.9% |
Average Student Enrollments of normal priced long-term |
3,023,840 |
4,669,140 |
54.4% |
"In the fiscal year 2021, despite the challenges of the COVID-19 pandemic, TAL realized 37.3% revenue growth. Our strength in both offline and online education capabilities enabled us to offer tutoring support to our students under the changing circumstances," said
"Looking ahead, we will keep investing in the quality of our products, service and technology as well as in sustainable marketing efforts. We will also further diversify our products, content and service while improving operational efficiency to meet our students and parents evolving needs at affordable prices,"
Financial Results for the Fourth Quarter of Fiscal Year 2021
Net Revenues
In the fourth quarter of fiscal year 2021, TAL reported net revenues of
Operating Costs and Expenses
In the fourth quarter of fiscal year 2021, operating costs and expenses were
Cost of revenues increased by 43.3% to
Selling and marketing expenses increased by 171.6% to
General and administrative expenses increased by 57.6% to
Total share-based compensation expenses allocated to the related operating costs and expenses increased by 144.5% to
Impairment loss on intangible assets and goodwill was
Gross Profit
Gross profit increased by 72.9% to
Loss from Operations
Loss from operations was
Other (expense)/Income
Other income was
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was
Income Tax (expense)/Benefit
Income tax benefit was
Net Loss Attributable to
Net loss attributable to TAL was
Basic and Diluted Net Loss per ADS
Basic and diluted net loss per ADS were both
Cash Flow
Net cash flow used in operating activities for the fourth quarter of fiscal year 2021 was
Cash, Cash Equivalents, and Short-Term Investments
As of
Deferred Revenue
The Company's deferred revenue balance was
Financial Results for the Fiscal Year Ended
Net Revenues
For fiscal year 2021, TAL reported net revenues of
Operating Costs and Expenses
In the fiscal year 2021, operating costs and expenses were
Cost of revenues grew by 39.5% to
Selling and marketing expenses increased by 97.0% to
General and administrative expenses increased by 40.6% to
Total share-based compensation expenses allocated to the related operating costs and expenses increased by 73.8% to
Impairment loss on intangible assets and goodwill was
Gross Profit
Gross profit grew by 35.6% to
Income/(loss) from Operations
Loss from operations was
Other (expense)/Income
Other income was
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was
Income Tax (expense)/Benefit
Income tax benefit was
Net (loss)/Income Attributable to
Net loss attributable to TAL was
Basic and Diluted Net (loss)/Income per ADS
Basic and diluted net loss per ADS were both
Cash Flow
Net cash flow provided by operating activities for the fiscal year 2021 was
Business Outlook
Based on our current estimates, total net revenues for the first quarter of fiscal year 2022 are expected to be between
These estimates reflect the Company's current expectation, which is subject to change.
Authorization of Share Repurchase Plan
On
The Company's proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The Company's board of directors will review the share repurchase plan periodically, and may authorize adjustment of its terms and size. The Company plans to fund repurchases from its existing cash balance.
Conference Call
The Company will host a conference call and live webcast to discuss its financial results for the fourth fiscal quarter of fiscal year 2021 ended
Please note that you will need to pre-register for conference call participation, using the link provided below. Upon registering, you will be sent participant dial-in numbers, Direct Event passcode and unique registrant ID by email.
Conference call registration link: http://apac.directeventreg.com/registration/event/5523728. It will automatically direct you to the registration page of "TAL Education Group Fourth Quarter of Fiscal Year 2021 Earnings Conference Call", where you may fill in your details for RSVP. When you are requested to submit a participant conference ID, please enter the number "5523728".
In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), Direct Event passcode and unique registrant ID) provided in the confirmation email that you have received following your pre-registration.
A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.100tal.com/.
A telephone replay of the conference call will be available through
The dial-in details for the replay are as follows: |
|
- |
+1-855-452-5696 |
- |
800-963-117 |
- International toll: |
+61-2-8199-0299 |
Conference ID: |
5523728 |
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
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:
Investor Relations
Tel: +86 10 5292 6658
Email: ir@tal.com
IR Inside
Tel: +31 6 5462 4301
Email: info@irinside.com
|
||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
(In thousands of |
||||
As of
|
As of
|
|||
ASSETS |
||||
Current assets |
||||
Cash and cash equivalents |
|
|
||
Restricted cash-current |
28,084 |
1,758,937 |
||
Short-term investments |
345,457 |
2,694,555 |
||
Inventory |
25,832 |
38,675 |
||
Amounts due from related parties-current |
3,642 |
2,964 |
||
Income tax receivables |
11,548 |
15,641 |
||
Prepaid expenses and other current assets |
207,352 |
403,110 |
||
Total current assets |
2,495,781 |
8,156,835 |
||
Restricted cash-non-current |
13,235 |
16,094 |
||
Property and equipment, net |
366,656 |
511,415 |
||
Deferred tax assets |
79,534 |
317,189 |
||
Rental deposits |
72,721 |
102,555 |
||
Intangible assets, net |
58,985 |
66,041 |
||
Land use right, net |
204,853 |
216,702 |
||
|
378,913 |
454,413 |
||
Long-term investments |
571,601 |
667,636 |
||
Long-term prepayments and other non-current assets |
85,275 |
57,694 |
||
Operating lease right-of-use assets |
1,243,692 |
1,545,735 |
||
Total assets |
|
|
||
LIABILITIES AND EQUITY |
||||
Current liabilities |
||||
Accounts payable (including accounts payable of the |
|
|
||
Deferred revenue-current (including deferred revenue-current of |
780,167 |
1,387,493 |
||
Amounts due to related parties-current (including amounts due |
4,361 |
3,488 |
||
Accrued expenses and other current liabilities (including |
552,650 |
911,283 |
||
Income tax payable (including income tax payable of the |
46,650 |
65,138 |
||
Current portion of long-term debt (including current portion of |
- |
270,000 |
||
Operating lease liabilities, current portion (including |
304,960 |
382,671 |
||
Total current liabilities |
1,806,558 |
3,373,851 |
||
Deferred revenue-non-current (including deferred revenue-non- |
833 |
30,005 |
||
Deferred tax liabilities (including deferred tax liabilities of the |
7,789 |
10,333 |
||
Bond payable (including bond payable of the consolidated VIEs |
- |
2,300,000 |
||
Long-term debt (including long-term debt of the consolidated VIEs |
261,950 |
- |
||
Operating lease liabilities, non-current portion (including |
949,919 |
1,193,564 |
||
Total liabilities |
3,027,049 |
6,907,753 |
||
Mezzanine equity |
||||
Redeemable non-controlling interests |
- |
1,775 |
||
Equity |
||||
Class A common shares |
133 |
148 |
||
Class B common shares |
67 |
67 |
||
Additional paid-in capital |
1,675,640 |
4,369,125 |
||
Statutory reserve |
82,712 |
121,285 |
||
Retained earnings |
786,097 |
624,883 |
||
Accumulated other comprehensive (loss)/income |
(28,913) |
86,321 |
||
|
2,515,736 |
5,201,829 |
||
Noncontrolling interest |
28,461 |
952 |
||
Total equity |
2,544,197 |
5,202,781 |
||
Total liabilities, mezzanine equity and equity |
|
|
||
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(In thousands of |
|||||||
For the Three Months Ended |
For the Fiscal Year Ended February 29/28, |
||||||
2020 |
2021 |
2020 |
2021 |
||||
Net revenues |
|
|
|
|
|||
Cost of revenues (note 1) |
405,882 |
581,449 |
1,468,569 |
2,048,561 |
|||
Gross profit |
451,800 |
781,240 |
1,804,739 |
2,447,194 |
|||
Operating expenses (note 1) |
|||||||
Selling and marketing |
243,204 |
660,452 |
852,808 |
1,680,050 |
|||
General and administrative |
221,245 |
348,605 |
794,957 |
1,117,324 |
|||
Impairment loss on intangible |
28,998 |
71,504 |
28,998 |
107,535 |
|||
Total operating expenses |
493,447 |
1,080,561 |
1,676,763 |
2,904,909 |
|||
Government subsidies |
391 |
2,111 |
9,467 |
19,491 |
|||
(Loss)/income from operations |
(41,256) |
(297,210) |
137,443 |
(438,224) |
|||
Interest income |
19,430 |
35,167 |
72,991 |
114,232 |
|||
Interest expense |
(3,857) |
(7,568) |
(11,820) |
(16,946) |
|||
Other (expense)/income |
(4,679) |
7,930 |
(95,297) |
140,878 |
|||
Impairment loss on long-term |
(2,774) |
(6,206) |
(153,970) |
(24,563) |
|||
Loss before income tax |
(33,136) |
(267,887) |
(50,653) |
(224,623) |
|||
Income tax (expense)/benefit |
(63,592) |
80,453 |
(69,328) |
69,897 |
|||
(Loss)/income from equity |
(1,775) |
5,324 |
(7,670) |
11,676 |
|||
Net loss |
|
|
|
|
|||
Add: Net loss attributable to |
8,429 |
13,108 |
17,456 |
27,060 |
|||
Total net loss attributable to |
|
|
|
|
|||
Net loss per common share |
|||||||
Basic |
|
|
|
|
|||
Diluted |
(0.45) |
(0.80) |
(0.56) |
(0.57) |
|||
Net loss per ADS (note 2) |
|||||||
Basic |
|
|
|
|
|||
Diluted |
(0.15) |
(0.27) |
(0.19) |
(0.19) |
|||
Weighted average shares used in |
|||||||
Basic |
199,095,944 |
212,209,608 |
198,184,370 |
203,603,391 |
|||
Diluted |
199,095,944 |
212,209,608 |
198,184,370 |
203,603,391 |
|||
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 29/28, |
Ended February 29/28, |
||||||
2020 |
2021 |
2020 |
2021 |
||||
Cost of revenues |
|
|
|
|
|||
Selling and marketing expenses |
6,405 |
24,965 |
19,356 |
56,609 |
|||
General and administrative expenses |
26,217 |
54,728 |
97,513 |
146,533 |
|||
Total |
|
|
|
|
|||
Note 2: Three ADSs represent one Class A common Share. |
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF |
|||||||
COMPREHENSIVE LOSS |
|||||||
(In thousands of |
|||||||
For the Three Months Ended February 29/28, |
For the Fiscal Year Ended February 29/28, |
||||||
2020 |
2021 |
2020 |
2021 |
||||
Net loss |
|
|
|
|
|||
Other comprehensive |
5,703 |
28,664 |
(47,825) |
116,498 |
|||
Comprehensive loss |
(92,800) |
(153,446) |
(175,476) |
(26,552) |
|||
Add: Comprehensive income |
8,236 |
12,924 |
19,321 |
25,796 |
|||
Comprehensive loss |
|
|
|
|
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF |
|||||||
CASH FLOWS |
|||||||
(In thousands of |
|||||||
For the Three Months Ended February 29/28, |
For the Fiscal Year February 29/28, |
||||||
2020 |
2021 |
2020 |
2021 |
||||
Net cash (used in)/provided by operating |
|
|
|
|
|||
Net cash used in investing activities |
(68,361) |
(1,935,202) |
(338,815) |
(2,641,469) |
|||
Net cash provided by financing activities |
4 |
3,302,301 |
131,231 |
4,794,813 |
|||
Effect of exchange rate changes |
(4,869) |
(2,701) |
3,218 |
(5,277) |
|||
Net change in cash, cash equivalents and |
(456,682) |
737,888 |
651,484 |
3,102,799 |
|||
Cash, cash equivalents and restricted |
2,371,867 |
4,280,096 |
1,263,701 |
1,915,185 |
|||
Cash, cash equivalents and restricted |
|
|
|
|
|
|||||||
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures |
|||||||
(In thousands of |
|||||||
For the Three Months Ended February 29/28, |
For the Fiscal Year |
||||||
2020 |
2021 |
2020 |
2021 |
||||
Cost of revenues |
|
|
|
|
|||
Share-based compensation expense |
242 |
645 |
1,074 |
1,803 |
|||
Non-GAAP cost of revenues |
405,640 |
580,804 |
1,467,495 |
2,046,758 |
|||
Selling and marketing expenses |
243,204 |
660,452 |
852,808 |
1,680,050 |
|||
Share-based compensation expense |
6,405 |
24,965 |
19,356 |
56,609 |
|||
Non-GAAP selling and marketing |
236,799 |
635,487 |
833,452 |
1,623,441 |
|||
General and administrative |
221,245 |
348,605 |
794,957 |
1,117,324 |
|||
Share-based compensation expense |
26,217 |
54,728 |
97,513 |
146,533 |
|||
Non-GAAP general and |
195,028 |
293,877 |
697,444 |
970,791 |
|||
Operating costs and expenses |
899,329 |
1,662,010 |
3,145,332 |
4,953,470 |
|||
Share-based compensation expense |
32,864 |
80,338 |
117,943 |
204,945 |
|||
Non-GAAP operating costs and |
866,465 |
1,581,672 |
3,027,389 |
4,748,525 |
|||
(Loss)/income from operations |
(41,256) |
(297,210) |
137,443 |
(438,224) |
|||
Share based compensation expenses |
32,864 |
80,338 |
117,943 |
204,945 |
|||
Non-GAAP (loss)/income from |
(8,392) |
(216,872) |
255,386 |
(233,279) |
|||
Net loss attributable to |
(90,074) |
(169,002) |
(110,195) |
(115,990) |
|||
Share based compensation expenses |
32,864 |
80,338 |
117,943 |
204,945 |
|||
Non-GAAP net (loss)/income |
|
|
|
|
|||
Net loss per ADS |
|||||||
Basic |
|
|
|
|
|||
Diluted |
(0.15) |
(0.27) |
(0.19) |
(0.19) |
|||
Non-GAAP Net (loss)/ income per |
|||||||
Basic |
|
|
|
|
|||
Diluted |
(0.10) |
(0.14) |
0.01 |
0.14 |
|||
ADSs used in calculating net loss |
|||||||
Basic |
597,287,832 |
636,628,824 |
594,553,110 |
610,810,173 |
|||
Diluted |
597,287,832 |
636,628,824 |
594,553,110 |
610,810,173 |
|||
ADSs used in calculating Non- |
|||||||
Basic |
597,287,832 |
636,628,824 |
594,553,110 |
610,810,173 |
|||
Diluted |
597,287,832 |
636,628,824 |
620,891,562 |
633,722,700 |
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