Highlights for the First Quarter of Fiscal Year 2023
- Net revenues was
- Loss from operations was
- Non-GAAP loss from operations, which excluded share-based compensation expenses, was
- Net loss attributable to TAL was
- Non-GAAP net loss attributable to TAL, which excluded share-based compensation expenses, was
- Basic and diluted net loss per American Depositary Share ("ADS") were both
- Cash, cash equivalents and short-term investments totaled
Financial Data——First Quarter of Fiscal Year 2023 |
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(In US$ thousands, except per ADS data and percentages) |
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Three Months Ended |
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|
|||||
2021 |
2022 |
Pct. Change |
|||
Net revenues |
1,384,943 |
224,045 |
(83.8 %) |
||
Loss from operations |
(126,857) |
(28,323) |
(77.7 %) |
||
Non-GAAP loss from operations |
(59,412) |
(1,844) |
(96.9 %) |
||
Net loss attributable to TAL |
(102,078) |
(43,829) |
(57.1 %) |
||
Non-GAAP net loss attributable to TAL |
(34,633) |
(17,350) |
(49.9 %) |
||
Net loss per ADS attributable to TAL – basic |
(0.16) |
(0.07) |
(57.1 %) |
||
Net loss per ADS attributable to TAL – diluted |
(0.16) |
(0.07) |
(57.1 %) |
||
Non-GAAP net loss per ADS attributable to TAL – basic |
(0.05) |
(0.03) |
(49.9 %) |
||
Non-GAAP net loss per ADS attributable to TAL – diluted |
(0.05) |
(0.03) |
(49.9 %) |
"Our performance this quarter demonstrates the combined efforts of our experienced management team, innovative employees, and our extensive business partners. In the process of our transformation, we are focused on developing new initiatives that match the mega trends in our industry and the broader ecosystem." said
"We believe TAL's trusted brand, operational excellence and pedagogical know-how will position the company for the transformation we are going through."
Financial Results for the First Quarter of Fiscal Year 2023
Net Revenues
In the first quarter of fiscal year 2023, TAL reported net revenues of
Operating Costs and Expenses
In the first quarter of fiscal year 2023, operating costs and expenses were
Cost of revenues decrease by 85.6% to
Selling and marketing expenses decreased by 86.1% to
General and administrative expenses decreased by 66.3% to
Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 60.7% to
Impairment loss on intangible assets and goodwill was nil for the first quarter of fiscal year 2023, compared to
Gross Profit
Gross profit decreased by 82.4% to
Loss from Operations
Loss from operations was
Other Income / (Expense)
Other expense was
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was nil for the first quarter of fiscal year 2023, compared to
Income Tax expense
Income tax expense 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, Cash Equivalents, and Short-Term Investments
As of
Deferred Revenue
As of
Conference Call
The Company will host a conference call and live webcast to discuss its financial results for the first fiscal quarter of fiscal year 2023 ended
Please note that you will need to pre-register for conference call participation at https://register.vevent.com/register/BI2f124a2b4d054342a99323e38a074715.
Upon registration, you will receive an email containing participant dial-in numbers and unique Direct Event Passcode. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.
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/.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
About
TAL Education Group is a smart learning solutions provider 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 6669-8809
Email: ir@tal.com
|
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(In thousands of |
|||
As of
|
As of
|
||
ASSETS |
|||
Current assets |
|||
Cash and cash equivalents |
|
|
|
Restricted cash-current |
755,646 |
532,214 |
|
Short-term investments |
1,070,535 |
1,156,100 |
|
Inventory |
21,830 |
22,483 |
|
Amounts due from related parties-current |
919 |
546 |
|
Income tax receivables |
19,504 |
3,145 |
|
Prepaid expenses and other current assets |
122,753 |
146,174 |
|
Total current assets |
3,629,376 |
3,596,698 |
|
Restricted cash-non-current |
287,951 |
248,816 |
|
Property and equipment, net |
281,226 |
258,004 |
|
Deferred tax assets |
6,747 |
3,185 |
|
Rental deposits |
10,770 |
11,572 |
|
Intangible assets, net |
1,696 |
1,224 |
|
Land use right, net |
217,708 |
204,751 |
|
Amounts due from related parties-non-current |
77 |
1 |
|
Long-term investments |
414,487 |
342,526 |
|
Long-term prepayments and other non-current assets |
5,418 |
2,927 |
|
Operating lease right-of-use assets |
227,072 |
165,437 |
|
Total assets |
|
|
|
LIABILITIES AND EQUITY |
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Current liabilities |
|||
Accounts payable |
|
|
|
Deferred revenue-current |
187,718 |
227,344 |
|
Amounts due to related parties-current |
205 |
138 |
|
Accrued expenses and other current liabilities |
509,461 |
441,624 |
|
Income tax payable |
49,257 |
38,401 |
|
Operating lease liabilities, current portion |
66,105 |
44,173 |
|
Total current liabilities |
902,584 |
822,777 |
|
Deferred revenue-non-current |
14 |
13 |
|
Deferred tax liabilities |
1,680 |
3,368 |
|
Operating lease liabilities, non-current portion |
175,988 |
133,749 |
|
Total liabilities |
1,080,266 |
959,907 |
|
Equity |
|||
Class A common shares |
167 |
167 |
|
Class B common shares |
49 |
49 |
|
Treasury Stock |
- |
(4) |
|
Additional paid-in capital |
4,358,265 |
4,334,980 |
|
Statutory reserve |
154,362 |
154,222 |
|
Accumulated deficit |
(544,309) |
(587,998) |
|
Accumulated other comprehensive income/(loss) |
61,617 |
(807) |
|
|
4,030,151 |
3,900,609 |
|
Noncontrolling interest |
(27,889) |
(25,375) |
|
Total equity |
4,002,262 |
3,875,234 |
|
Total liabilities and equity |
|
|
|
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
(In thousands of |
|||||
For the Three Months Ended |
|||||
2021 |
2022 |
||||
Net revenues |
|
|
|||
Cost of revenues (note 1) |
613,141 |
88,558 |
|||
Gross profit |
771,802 |
135,487 |
|||
Operating expenses (note 1) |
|||||
Selling and marketing |
431,349 |
60,039 |
|||
General and administrative |
331,133 |
111,450 |
|||
Impairment loss on intangible assets and goodwill |
139,409 |
- |
|||
Total operating expenses |
901,891 |
171,489 |
|||
Government subsidies |
3,232 |
7,679 |
|||
Loss from operations |
(126,857) |
(28,323) |
|||
Interest income |
36,601 |
13,063 |
|||
Interest expense |
(3,172) |
- |
|||
Other income/(expense) |
38,822 |
(26,789) |
|||
Impairment loss on long-term investments |
(23,182) |
- |
|||
Loss before income tax expense and (loss)/income from equity method investments |
(77,788) |
(42,049) |
|||
Income tax expense |
(31,204) |
(2,316) |
|||
(Loss)/income from equity method investments |
(72) |
1,453 |
|||
Net loss |
|
|
|||
Add: Net loss/(income) attributable to noncontrolling |
6,986 |
(917) |
|||
Total net loss attributable to TAL Education Group |
|
|
|||
Net loss per common share |
|||||
Basic |
|
|
|||
Diluted |
(0.47) |
(0.20) |
|||
Net loss per ADS (note 2) |
|||||
Basic |
|
|
|||
Diluted |
(0.16) |
(0.07) |
|||
Weighted average shares used in calculating net loss per common share |
|||||
Basic |
214,982,190 |
215,062,603 |
|||
Diluted |
214,982,190 |
215,062,603 |
|||
Note1: Share-based compensation expenses are included in the operating costs and expenses as follows: |
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For the Three Months |
||||
Ended May 31, |
||||
2021 |
2022 |
|||
Cost of revenues |
|
|
||
Selling and marketing expenses |
23,972 |
8,081 |
||
General and administrative expenses |
43,090 |
16,005 |
||
Total |
|
|
||
Note 2: Three ADSs represent one Class A common Share. |
TAL EDUCATION GROUP |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF |
||||
Comprehensive LOSS |
||||
(In thousands of |
||||
For the Three Months Ended May 31, |
||||
2021 |
2022 |
|||
Net loss |
|
|
||
Other comprehensive income/(loss), net of tax |
15,695 |
(60,826) |
||
Comprehensive loss |
(93,369) |
(103,738) |
||
Add: Comprehensive income/(loss) attributable |
7,109 |
(2,514) |
||
Comprehensive loss attributable to TAL Education Group |
|
|
TAL EDUCATION GROUP |
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Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures |
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(In thousands of |
||||
For the Three Months Ended May 31, |
||||
2021 |
2022 |
|||
Cost of revenues |
|
|
||
Share-based compensation expense in cost of revenues |
383 |
2,393 |
||
Non-GAAP cost of revenues |
612,758 |
86,165 |
||
Selling and marketing expenses |
431,349 |
60,039 |
||
Share-based compensation expense in selling and marketing expenses |
23,972 |
8,081 |
||
Non-GAAP selling and marketing expenses |
407,377 |
51,958 |
||
General and administrative expenses |
331,133 |
111,450 |
||
Share-based compensation expense in general and administrative expenses |
43,090 |
16,005 |
||
Non-GAAP general and administrative expenses |
288,043 |
95,445 |
||
Operating costs and expenses |
1,515,032 |
260,047 |
||
Share-based compensation expense in operating costs and expenses |
67,445 |
26,479 |
||
Non-GAAP operating costs and expenses |
1,447,587 |
233,568 |
||
Loss from operations |
(126,857) |
(28,323) |
||
Share based compensation expenses |
67,445 |
26,479 |
||
Non-GAAP loss from operations |
(59,412) |
(1,844) |
||
Net loss attributable to TAL Education Group |
(102,078) |
(43,829) |
||
Share based compensation expenses |
67,445 |
26,479 |
||
Non-GAAP net loss attributable to TAL |
$ (34,633) |
|
||
Net loss per ADS |
||||
Basic |
|
|
||
Diluted |
(0.16) |
(0.07) |
||
Non-GAAP Net loss per ADS |
||||
Basic |
|
|
||
Diluted |
(0.05) |
(0.03) |
||
ADSs used in calculating net loss per ADS |
||||
Basic |
644,946,571 |
645,187,809 |
||
Diluted |
644,946,571 |
645,187,809 |
||
ADSs used in calculating Non-GAAP net loss per ADS |
||||
Basic |
644,946,571 |
645,187,809 |
||
Diluted |
644,946,571 |
645,187,809 |
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