Highlights for the Second Quarter of Fiscal Year 2023
- Net revenues was
- Income from operations was
- Non-GAAP income from operations, which excluded share-based compensation expenses, was
- Net loss attributable to TAL was
- Non-GAAP net income 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
Highlights for the Six Months Ended
- Net revenues was
- Loss from operations was
- Non-GAAP income from operations, which excluded share-based compensation expenses, was
- Net loss attributable to TAL was
- Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was
- Basic and diluted net loss per ADS were both
Financial Data——Second Quarter and First Six Months of Fiscal Year 2023 |
|||
(In US$ thousands, except per ADS data and percentages) |
|||
Three Months Ended |
|||
|
|||
2021 |
2022 |
Pct. Change |
|
Net revenues |
1,443,880 |
294,060 |
(79.6 %) |
(Loss)/income from operations |
(379,874) |
14,891 |
(103.9 %) |
Non-GAAP(loss)/income from operations |
(313,440) |
42,315 |
(113.5 %) |
Net loss attributable to TAL |
(826,546) |
(787) |
(99.9 %) |
Non-GAAP net (loss)/income attributable to TAL |
(760,112) |
26,637 |
(103.5 %) |
Net loss per ADS attributable to TAL – basic |
(1.29) |
(0.00) |
(99.9 %) |
Net loss per ADS attributable to TAL – diluted |
(1.29) |
(0.00) |
(99.9 %) |
Non-GAAP net (loss)/income per ADS attributable |
(1.18) |
0.04 |
(103.5 %) |
Non-GAAP net (loss)/income per ADS attributable |
(1.18) |
0.04 |
(103.5 %) |
Six Months Ended |
|||
|
|||
2021 |
2022 |
Pct. Change |
|
Net revenues |
2,828,823 |
518,105 |
(81.7 %) |
Loss from operations |
(506,731) |
(13,432) |
(97.3 %) |
Non-GAAP (loss)/income from operations |
(372,852) |
40,471 |
(110.9 %) |
Net loss attributable to TAL |
(928,624) |
(44,616) |
(95.2 %) |
Non-GAAP net (loss)/income attributable to TAL |
(794,745) |
9,287 |
(101.2 %) |
Net loss per ADS attributable to TAL – basic |
(1.44) |
(0.07) |
(95.2 %) |
Net loss per ADS attributable to TAL – diluted |
(1.44) |
(0.07) |
(95.2 %) |
Non-GAAP net (loss)/income per ADS attributable |
(1.23) |
0.01 |
(101.2 %) |
Non-GAAP net (loss)/income per ADS attributable |
(1.23) |
0.01 |
(101.2 %) |
"Our business has shown a healthy momentum in this quarter. We will continue to invest in learning services, learning content solutions and learning technology solutions to lay the foundation for long-term growth." said
Financial Results for the Second Quarter of Fiscal Year 2023
Net Revenues
In the second quarter of fiscal year 2023, TAL reported net revenues of
Operating Costs and Expenses
In the second quarter of fiscal year 2023, operating costs and expenses were
Cost of revenues decreased by 86.6% to
Selling and marketing expenses decreased by 74.8% to
General and administrative expenses decreased by 72.7% to
Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 58.7% to
Impairment loss on intangible assets and goodwill was nil for the second quarter of fiscal year 2023, compared to
Gross Profit
Gross profit decreased by 69.0% to
(Loss)/Income from Operations
Income from operations was
Other (expense)/Income
Other expense was
Impairment Loss on Long-term Investments
Impairment loss on Long-term investment was
Income Tax Expense
Income tax expense was
Net (Loss)/Income attributable to TAL
Net loss attributable to TAL was
Basic and Diluted Net (Loss)/Income per ADS
Basic and diluted net loss per ADS were both
Cash, Cash Equivalents, and Short-Term Investments
As of
Deferred Revenue
As of
Financial Results for the First Six Months of Fiscal Year 2023
Net Revenues
For the first six months of fiscal year 2023, TAL reported net revenues of US$518.1 million, representing an 81.7% decrease from US$2,828.8 million in the first six months of fiscal year 2022.
Operating Costs and Expenses
In the first six months of fiscal year 2023, operating costs and expenses were US$552.5 million, an 83.5% decrease from US$3,340.6 million in the first six months of fiscal year 2022. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$498.6 million, an 84.5% decrease from US$3,206.7 million in the first six months of fiscal year 2022.
Cost of revenues decreased by 86.2% to US$205.7 million from US$1,485.8 million in the first six months of fiscal year 2022. Non-GAAP cost of revenues, which excluded share-based compensation expenses, decreased by 86.5% to US$200.7 million from US$1,485.0 million in the first six months of fiscal year 2022.
Selling and marketing expenses decreased by 81.4% to US$138.1 million from US$741.0 million in the first six months of fiscal year 2022. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, decreased by 82.4% to US$121.7 million from US$692.6 million in the first six months of fiscal year 2022.
General and administrative expenses decreased by 69.7% to US$208.7 million from US$687.6 million in the first six months of fiscal year 2022. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, decreased by 70.8% to US$176.1 million from US$602.9 million in the first six months of fiscal year 2022.
Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 59.7% to US$53.9 million in the first six months of fiscal year 2023 from US$133.9 million in the same period of fiscal year 2022.
Impairment loss on intangible assets and goodwill was nil for the first six months of fiscal year 2023, compared to
Gross Profit
Gross profit decreased by 76.7% to US$312.4 million from US$1,343.1 million in the first six months of fiscal year 2022.
(Loss)/Income from Operations
Loss from operations was US$13.4 million in the first six months of fiscal year 2023, compared to loss from operations of US$506.7 million in the same period of the prior year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$40.5 million, compared to US$372.9 million Non-GAAP loss from operations in the same period of the prior year.
Other (Expense)/Income
Other expense was US$52.5 million for the first six months of fiscal year 2023, compared to other income of
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was US$6.6 million for the first six months of fiscal year 2023, compared to US$178.1 million for the first six months of fiscal year 2022.
Income Tax Expense
Income tax expense was US$6.8 million in the first six months of fiscal year 2023, compared to US$341.6 million of income tax expense in the first six months of fiscal year 2022.
Net (Loss)/Income Attributable to TAL Education Group
Net loss attributable to TAL was US$44.6 million in the first six months of fiscal year 2023, compared to net loss attributable to TAL of US$928.6 million in the first six months of fiscal year 2022. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was
Basic and Diluted Net (Loss)/Income per ADS
Basic and diluted net loss per ADS were both US$0.07 in the first six months of fiscal year 2023. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both
Conference Call
The Company will host a conference call and live webcast to discuss its financial results for the second 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/BI60d8b93968b145e994b6c9c02b8aa42e.
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
|
||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
(In thousands of |
||||
As of
|
As of
|
|||
ASSETS |
||||
Current assets |
||||
Cash and cash equivalents |
|
|
||
Restricted cash-current |
755,646 |
207,816 |
||
Short-term investments |
1,070,535 |
1,327,275 |
||
Inventory |
21,830 |
30,828 |
||
Amounts due from related parties-current |
919 |
324 |
||
Income tax receivables |
19,504 |
28 |
||
Prepaid expenses and other current assets |
122,753 |
141,386 |
||
Total current assets |
3,629,376 |
3,466,912 |
||
Restricted cash-non-current |
287,951 |
158,391 |
||
Property and equipment, net |
281,226 |
262,606 |
||
Deferred tax assets |
6,747 |
3,202 |
||
Rental deposits |
10,770 |
13,833 |
||
Intangible assets, net |
1,696 |
824 |
||
Land use right, net |
217,708 |
197,213 |
||
Amounts due from related parties- non-current |
77 |
- |
||
Long-term investments |
414,487 |
464,467 |
||
Long-term prepayments and other non-current assets |
5,418 |
2,627 |
||
Operating lease right-of-use assets |
227,072 |
148,715 |
||
Total assets |
|
|
||
LIABILITIES AND EQUITY |
||||
Current liabilities |
||||
Accounts payable |
|
|
||
Deferred revenue-current |
187,718 |
177,530 |
||
Amounts due to related parties-current |
205 |
102 |
||
Accrued expenses and other current liabilities |
558,718 |
463,711 |
||
Operating lease liabilities, current portion |
66,105 |
39,955 |
||
Total current liabilities |
902,584 |
754,990 |
||
Deferred revenue-non-current |
14 |
12 |
||
Deferred tax liabilities |
1,680 |
4,112 |
||
Operating lease liabilities, non-current portion |
175,988 |
120,566 |
||
Total liabilities |
1,080,266 |
879,680 |
||
Equity |
||||
Class A common shares |
167 |
167 |
||
Class B common shares |
49 |
49 |
||
Treasury Stock |
- |
(5) |
||
Additional paid-in capital |
4,358,265 |
4,357,850 |
||
Statutory reserve |
154,362 |
153,487 |
||
Accumulated deficit |
(544,309) |
(588,050) |
||
Accumulated other comprehensive income/(loss) |
61,617 |
(57,671) |
||
|
4,030,151 |
3,865,827 |
||
Noncontrolling interest |
(27,889) |
(26,717) |
||
Total equity |
4,002,262 |
3,839,110 |
||
Total liabilities and equity |
|
|
||
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(In thousands of |
|||||||
For the Three Months Ended |
For the Six Months Ended |
||||||
2021 |
2022 |
2021 |
2022 |
||||
Net revenues |
|
|
|
|
|||
Cost of revenues (note 1) |
872,628 |
117,132 |
1,485,769 |
205,690 |
|||
Gross profit |
571,252 |
176,928 |
1,343,054 |
312,415 |
|||
Operating expenses (note 1) |
|||||||
Selling and marketing |
309,688 |
78,087 |
741,037 |
138,126 |
|||
General and administrative |
356,499 |
97,206 |
687,632 |
208,656 |
|||
Impairment loss on intangible assets and goodwill |
286,781 |
- |
426,190 |
- |
|||
Total operating expenses |
952,968 |
175,293 |
1,854,859 |
346,782 |
|||
Government subsidies |
1,842 |
13,256 |
5,074 |
20,935 |
|||
(Loss)/income from operations |
(379,874) |
14,891 |
(506,731) |
(13,432) |
|||
Interest income |
35,296 |
12,445 |
71,897 |
25,508 |
|||
Interest expense |
(2,878) |
- |
(6,050) |
- |
|||
Other (expense)/income |
(30,731) |
(25,715) |
8,091 |
(52,504) |
|||
Gain from disposal of a subsidiary |
- |
9,550 |
- |
9,550 |
|||
Impairment loss on long-term |
(154,881) |
(6,610) |
(178,063) |
(6,610) |
|||
(Loss)/income before income tax |
(533,068) |
4,561 |
(610,856) |
(37,488) |
|||
Income tax expense |
(310,354) |
(4,487) |
(341,558) |
(6,803) |
|||
Income/(loss) from equity method |
4,120 |
(932) |
4,048 |
521 |
|||
Net loss |
(839,302) |
(858) |
(948,366) |
(43,770) |
|||
Add: Net loss/(income) |
12,756 |
71 |
19,742 |
(846) |
|||
Total net loss attributable to |
|
|
|
|
|||
Net loss per common share |
|||||||
Basic |
|
|
|
|
|||
Diluted |
(3.86) |
(0.00) |
(4.33) |
(0.21) |
|||
Net loss per ADS (note 2) |
|||||||
Basic |
|
|
|
|
|||
Diluted |
(1.29) |
(0.00) |
(1.44) |
(0.07) |
Weighted average shares used in |
|||||||
Basic |
214,204,714 |
211,620,275 |
214,593,452 |
213,341,439 |
|||
Diluted |
214,204,714 |
211,620,275 |
214,593,452 |
213,341,439 |
Note1: Share-based compensation expenses are included in the operating costs and expenses as follows: |
|||||||||
For the Three Months |
For the Six Months |
||||||||
Ended August 31, |
Ended August 31, |
||||||||
2021 |
2022 |
2021 |
2022 |
||||||
Cost of revenues |
|
|
|
|
|||||
Selling and marketing expenses |
24,460 |
8,296 |
48,432 |
16,377 |
|||||
General and administrative expenses |
41,623 |
16,541 |
84,713 |
32,546 |
|||||
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 August 31, |
For the Six Months Ended August 31, |
||||||
2021 |
2022 |
2021 |
2022 |
||||
Net loss |
|
|
|
|
|||
Other comprehensive loss, net |
(39,540) |
(55,912) |
(23,845) |
(116,738) |
|||
Comprehensive loss |
(878,842) |
(56,770) |
(972,211) |
(160,508) |
|||
Add: Comprehensive loss |
12,640 |
(882) |
19,749 |
(3,396) |
|||
Comprehensive loss |
|
|
|
|
|
|||||||
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures |
|||||||
(In thousands of |
|||||||
For the Three Months Ended |
For the Six Months |
||||||
2021 |
2022 |
2021 |
2022 |
||||
Cost of revenues |
|
|
|
|
|||
Share-based compensation expense |
351 |
2,587 |
734 |
4,980 |
|||
Non-GAAP cost of revenues |
872,277 |
114,545 |
1,485,035 |
200,710 |
|||
Selling and marketing expenses |
309,688 |
78,087 |
741,037 |
138,126 |
|||
Share-based compensation expense |
24,460 |
8,296 |
48,432 |
16,377 |
|||
Non-GAAP selling and marketing |
285,228 |
69,791 |
692,605 |
121,749 |
|||
General and administrative |
356,499 |
97,206 |
687,632 |
208,656 |
|||
Share-based compensation expense |
41,623 |
16,541 |
84,713 |
32,546 |
|||
Non-GAAP general and |
314,876 |
80,665 |
602,919 |
176,110 |
|||
Operating costs and expenses |
1,825,596 |
292,425 |
3,340,628 |
552,472 |
|||
Share-based compensation expense |
66,434 |
27,424 |
133,879 |
53,903 |
|||
Non-GAAP operating costs and |
1,759,162 |
265,001 |
3,206,749 |
498,569 |
|||
(Loss)/income from operations |
(379,874) |
14,891 |
(506,731) |
(13,432) |
|||
Share based compensation expenses |
66,434 |
27,424 |
133,879 |
53,903 |
|||
Non-GAAP (loss)/income from |
(313,440) |
42,315 |
(372,852) |
40,471 |
|||
Net loss attributable to |
(826,546) |
(787) |
(928,624) |
(44,616) |
|||
Share based compensation expenses |
66,434 |
27,424 |
133,879 |
53,903 |
|||
Non-GAAP net (loss)/income |
$ (760,112) |
|
|
|
|||
Net loss per ADS |
|||||||
Basic |
|
|
|
|
|||
Diluted |
(1.29) |
(0.00) |
(1.44) |
(0.07) |
|||
Non-GAAP net (loss)/ income per |
|||||||
Basic |
|
|
|
|
|||
Diluted |
(1.18) |
0.04 |
(1.23) |
0.01 |
|||
ADSs used in calculating net loss |
|||||||
Basic |
642,614,142 |
634,860,825 |
643,780,356 |
640,024,317 |
|||
Diluted |
642,614,142 |
634,860,825 |
643,780,356 |
640,024,317 |
|||
ADSs used in calculating Non- |
|||||||
Basic |
642,614,142 |
634,860,825 |
643,780,356 |
640,024,317 |
|||
Diluted |
642,614,142 |
642,251,238 |
643,780,356 |
642,521,076 |
View original content:https://www.prnewswire.com/news-releases/tal-education-group-announces-unaudited-financial-results-for-the-second-fiscal-quarter-ended-august-31-2022-301662141.html
SOURCE