Business News
New Oriental Announces Results for the Fourth Quarter and Fiscal Year Ended May 31, 2008
2008-07-17 03:03:00
Quarterly Net Revenues Increased by 62.5% Year-Over-Year
Quarterly Net Income Increased by 214.6% Year-Over-Year
Quarterly Net Income Excluding Share-Based Compensation Expenses (non-GAAP)
Increased by 513.2% Year-Over-Year
Fiscal Year Net Revenues Increased by 51.6% Year-Over-Year
Fiscal Year Net Income Increased by 71.4% Year-Over-Year
Fiscal Year Net Income Excluding Share-Based Compensation Expenses
(non-GAAP) Increased by 73.7% Year-Over-Year
BEIJING, July 17 /Xinhua-EMWNews/ -- New Oriental Education and
Technology Group Inc. (the "Company") (NYSE: EDU), the largest provider of
private educational services in China, today announced its unaudited
financial results for the fourth quarter and fiscal year ended May 31,
2008.
Highlights for the Fourth Fiscal Quarter Ended May 31, 2008
-- Total net revenues for the quarter increased by 62.5% year-over-year to
US$40.2 million from US$24.7 million.
-- Net income for the quarter increased year-over-year to US$1.8 million
from a net loss of US$1.5 million; and net income excluding share-based
compensation expenses (non-GAAP) increased by 513.2% year-over-year to
US$4.5 million from US$0.7 million.
-- Loss from operations for the quarter decreased year-over-year by 94.0%
to US$0.2 million from US$3.5 million; and income from operations
excluding share-based compensation expenses (non-GAAP) increased to
US$2.5 million from a loss of US$1.2 million.
-- Basic and diluted earnings per ADS for the quarter were US$0.05 and
US$0.05, respectively. Excluding share-based compensation expenses
(non-GAAP), basic and diluted earnings per ADS for the quarter were
US$0.12 and US$0.12, respectively. Each ADS represents four common
shares of the Company.
Highlights for the Fiscal Year Ended May 31, 2008
-- Total net revenues for the fiscal year increased by 51.6% year-over-
year to US$201.0 million from US$132.6 million.
-- Net income for the fiscal year increased by 71.4% year-over-year to
US$49.0 million from US$28.6 million; and net income excluding share-
based compensation expenses (non-GAAP) increased by 73.7% year-over-
year to US$57.8 million from US$33.2 million.
-- Income from operations for the fiscal year increased by 73.8% year-
over-year to US$45.3 million from US$26.1 million; and income from
operations excluding share-based compensation expenses (non-GAAP)
increased by 75.9% year-over-year to US$54.1 million from US$30.7
million.
-- Basic and diluted earnings per ADS for the fiscal year were US$1.31 and
US$1.25, respectively. Excluding share-based compensation expenses
(non-GAAP), basic and diluted earnings per ADS for the fiscal year were
US$1.54 and US$1.48, respectively.
-- Total student enrollments in language training and test preparation
courses for the fiscal year increased by 19.1% year-over-year to
approximately 1,271,700 from approximately 1,068,000.
-- The total number of schools and learning centers increased to 207 as of
May 31, 2008 from 130 as of May 31, 2007. We opened 3 new schools in
the quarter to bring the total to 41 as of May 31, 2008, up from 38 as
of February 29, 2008. The number of learning centers increased by 23
in the quarter to 166 as of May 31, 2008, up from 143 as of February
29, 2008.
"We are pleased to finish our 2008 fiscal year on a strong note with
substantial fourth fiscal quarter revenue and profit growth," said Michael
Yu, New Oriental's chairman and chief executive officer. "During the
quarter, we continued to grow our 'New Oriental U Can' all-subjects middle
and high school training program after its initial launch in last fiscal
quarter. We have rolled out U-Can programs in more than 20 cities
throughout China with enrollments of more than 7,000 in non-English subject
classes in the fourth fiscal quarter, despite an enrollment slowdown in May
following the Sichuan earthquake. We are confident that U-Can, along with
English language training and overseas test preparation, will drive New
Oriental's growth in the years ahead."
"We also successfully executed on our expansion plan in the fourth
fiscal quarter by opening a total of three new schools in the cities of
Lanzhou, Huangshi and Ningbo. To further capture the strong demand for our
programs and services in existing markets, we also added a net 23 new
learning centers during the quarter. Including these new schools and
learning centers, we added a total of 77 facilities in fiscal year 2008,
consisting of 6 schools and 71 learning centers," Mr. Yu added.
New Oriental's chief financial officer, Louis T. Hsieh, stated:
We are pleased to report record financial results for the fourth fiscal
quarter and full 2008 fiscal year. Our fourth fiscal quarter net revenues
were up 62.5% year-over-year to US$40.2 million, and non-GAAP net income
was up over 500% from the year ago period to US$4.5 million. For the 2008
fiscal year, we increased net revenues 51.6% year-over-year to over
US$201.0 million, and non-GAAP net income increased 73.7% year-over-year to
US$57.8 million. Despite opening a record 77 schools and learning centers
in fiscal year 2008, we continued to demonstrate the leveragability of our
business model with strong margin improvements: (i) gross margins increased
to 61.6% for FY2008, from 59.5% for FY2007, (ii) non-GAAP operating margins
increased to 26.9% for FY2008, from 23.2% for FY2007, and (iii) non-GAAP
net income margins increased to 28.7% for FY2008, from 25.1% for FY2007.
Our strong student enrollment growth in language training and test
preparation courses continued in fiscal year 2008 with over 1,271,000
enrollments, an increase of over 200,000 enrollments, or 19.1%, from fiscal
year 2007. We achieved record student enrollments for the fiscal year
despite a 2.8% decrease to 305,200 student enrollments for the fourth
fiscal quarter due to (i) the slowdown in May following the Sichuan
earthquake; (ii) the slowdown in our Beijing School due to uncertainties
surrounding housing, transportation and travel logistics for the summer of
2008 as Beijing prepares to host the Olympic Games; and (iii) the difficult
year-over-year comparison with the fourth fiscal quarter of 2007 when
student enrollments were up 31.5% to over 314,000 from the previous year. A
portion of last year's fourth fiscal quarter enrollments would normally
have been recorded in the third fiscal quarter ended February 28, 2007, but
were instead pushed into the fourth fiscal quarter of 2007 due to the late
timing of the Chinese New Year holiday in 2007 (on February 18, 2007),
which was two to three weeks later than normal.
In response to numerous inquiries from investors and research analysts,
in early June 2008 New Oriental issued a press release discussing the
potential impact to the company's business as a result of the Sichuan
earthquake and the Olympic Games. In that press release the Company stated
it was hopeful of a June rebound in student enrollments and revenues. New
Oriental is pleased to report that we did indeed witness a strong recovery
in student enrollments and revenues in June and the first two weeks of July
2008 ended July 13. "Cash Proceeds" (tuition fees paid by students in cash
when they register for classes and recognized proportionately as revenue as
the instructions are delivered) for the past six weeks ended July 13, 2008
were approximately US$60 million, an increase of approximately 50% from
approximately US$40 million in the corresponding period of 2007. The
Beijing School has also rebounded in the same six week period with Cash
Proceeds up approximately 47% to US$14.6 million. New Oriental's school in
Chengdu, closest to the Sichuan earthquake epicenter, is fully operational
with 6 learning centers and has also recovered in the same six week period
with Cash Proceeds up approximately 32% to US$1.4 million as compared to
the year ago period.
Recent Developments
On June 24, 2008, New Oriental and Intuto Ltd., a New Zealand-based
e-learning solutions provider, formed a strategic partnership to co-develop
and update custom learning materials tailored to New Oriental's existing
IELTS courses. International English Language Testing System, or IELTS, is
used throughout the world to assess the language ability of second language
speakers planning to live, work, or study in English speaking countries.
Under the agreement, Intuto will work with New Oriental's instructors to
develop a line of English language learning materials, including textbooks,
to address the four skills in the IELTS exam: reading, writing, speaking,
and listening of the English language. Furthermore, New Oriental has the
rights under this contract to develop its own IELTS courses and exercises
via New Oriental's Koolearn.com online learning platform based on this
in-classroom material.
Financial Results for the Fiscal Quarter Ended May 31, 2008
For the fourth fiscal quarter of 2008, New Oriental reported net
revenues of US$40.2 million, representing a 62.5% increase year-over-year.
Net revenues from educational programs and services for the fourth
fiscal quarter were US$35.2 million, representing a 60.9% increase
year-over-year.
Total operating costs and expenses for the quarter were US$40.4
million, a 43.2% increase year-over-year; excluding share-based
compensation expenses (non-GAAP), operating costs and expenses for the
quarter were US$37.6 million, a 45.2% increase year-over-year.
Cost of revenues for the quarter were US$17.7 million, a 50.9% increase
year-over-year, primarily due to the increased number of courses offered
and the greater number of schools and learning centers in operation.
Selling and marketing expenses for the quarter were US$7.5 million, a
49.9% increase year-over-year, primarily due to the headcount for the
selling and marketing department, which includes registration verification
personnel, increasing by 330 over the year ago period as the company added
77 new schools and learning centers in fiscal year 2008.
General and administrative expenses for the quarter were US$15.2
million, a 32.5% increase year-over-year; excluding share-based
compensation expenses (non-GAAP), general and administrative expenses for
the quarter were US$12.7 million, a 33.7% increase year-over-year,
primarily due to increased headcount as the company further expanded its
operations.
Total share-based compensation expenses, which were allocated to
related operating costs and expenses, increased to US$2.7 million in the
fourth quarter of fiscal year 2008 from US$2.3 million in the year ago
period.
Loss from operations for the quarter was US$0.2 million, a 94.0%
decrease from US$3.5 million in the year ago period, and income from
operations excluding share-based compensation expenses (non-GAAP) for the
quarter was US$2.5 million, compared to a loss of US$1.2 million in the
year ago period.
Operating margin for the quarter was negative 0.5%, compared to
negative 14.1% in the corresponding period of the previous year. Excluding
share-based compensation expenses (non-GAAP), operating margin for the
quarter was 6.3%, compared to negative 4.9% in the corresponding period of
the prior year. This increase was primarily due to the improved operating
efficiency as revenue growth outpaced the growth in operating costs and
expenses.
Net income for the quarter was US$1.8 million, compared to a net loss
of US$1.5 million. Basic and diluted earnings per ADS were US$0.05 and
US$0.05, respectively. Excluding share-based compensation expenses
(non-GAAP), net income for the quarter was US$4.5 million, a 513.2%
increase year-over-year. Basic and diluted earnings per ADS excluding
share-based compensation expenses (non-GAAP) were US$0.12 and US$0.12,
respectively.
Capital expenditures for the quarter were US$2.5 million which was
primarily used to add the 3 new schools and a net of 23 new learning
centers in the quarter.
As of May 31, 2008, New Oriental had cash and cash equivalents of
US$208.4 million, as compared to US$230.1 million as of February 29, 2008.
Net operating cash flow for the fourth quarter of fiscal year 2008 was
US$23.9 million. The decrease in the cash balance was due to the Company's
share buyback plan of one million ADS which was announced on February 14,
2008. The Company has now completed the one million ADS buyback program.
The deferred revenue balance (cash collected from registered students
for courses and recognized proportionately as revenue as the instructions
are delivered) at the end of the quarter was US$59.2 million, an increase
of 37.0% as compared to US$43.2 million at the end of the fourth fiscal
quarter 2007.
Financial Results for the Fiscal Year Ended May 31, 2008
For the fiscal year ended May 31, 2008 New Oriental reported net
revenues of US$201.0 million, representing a 51.6% increase year-over-year.
Total student enrollments in language training and test preparation
courses in the fiscal year ended May 31, 2008 increased by 19.1% to
approximately 1,271,700 from approximately 1,068,000 in the fiscal year
ended May 31, 2007.
Income from operations for the fiscal year ended May 31, 2008 was
US$45.3 million, a 73.8% increase year-over-year. Income from operations
excluding share-based compensation expenses (non-GAAP) for the fiscal year
ended May 31, 2008 was US$54.1 million, a 75.9% increase year-over-year.
Operating margin for the fiscal year ended May 31, 2008 was 22.6%,
compared to 19.7% for the fiscal year ended May 31, 2007; excluding
share-based compensation expenses (non-GAAP), operating margin for the
fiscal year ended May 31, 2008 was 26.9%, compared to 23.2% for the fiscal
year ended May 31, 2007.
Net income for the fiscal year ended May 31, 2008 was US$49.0 million,
a 71.4% increase year-over-year. Basic and diluted earnings per ADS for the
fiscal year ended May 31, 2008 amounted to US$1.31 and US$1.25,
respectively.
Net income excluding share-based compensation expenses (non-GAAP) for
the fiscal year ended May 31, 2008 was US$57.8 million, a 73.7% increase
year-over-year. Basic and diluted earnings per ADS excluding share-based
compensation expenses (non-GAAP) for the fiscal year ended May 31, 2008
were US$1.54 and US$1.48, respectively.
Outlook for the First Fiscal Quarter of 2009
New Oriental expects its total net revenues in the first quarter of
fiscal year 2009 (June 1, 2008 to August 31, 2008) to be in the range of
US$103.8 million to US$109.5 million, representing year-over-year growth in
the range of 28% to 35%, respectively. This preliminary forecast could be
negatively impacted by the Olympic Games which will take place August 8 to
24 during the middle of New Oriental's August term, due to potential travel
and transportation logistics arrangements in Beijing and potential
distractions as the nation and the World enjoy the Olympic Games. This
forecast reflects New Oriental's current and preliminary view, which is
subject to change.
Conference Call Information
New Oriental's management will host an earnings conference call on July
17, 2008 at 8 AM U.S. Eastern Time (8 PM Beijing/Hong Kong time, 1 PM BST).
Dial-in details for the earnings conference call are as follows:
US: +1-617-597-5313
Hong Kong: +852-3002-1672
UK: +44-207-365-8426
Please dial-in 10 minutes before the call is scheduled to begin and
provide the passcode to join the call. The passcode is "New Oriental
earnings call."
A replay of the conference call may be accessed by phone at the
following number until July 24, 2008:
International: +1-617-801-6888
Passcode: 37508821
Additionally, a live and archived webcast of the conference call will
be available at http://investor.neworiental.org .
About New Oriental
New Oriental is the largest provider of private educational services in
China based on the number of program offerings, total student enrollments
and geographic presence. New Oriental offers a wide range of educational
programs, services and products consisting primarily of English and other
foreign language training, test preparation courses for major admissions
and assessment tests in the United States, the PRC and Commonwealth
countries, primary and secondary school education, development and
distribution of educational content, software and other technology, and
online education. New Oriental's ADSs, each of which represents four common
shares, currently trade on the New York Stock Exchange under the symbol
''EDU.''
For more information about New Oriental, please visit
http://english.neworiental.org .
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 first quarter of fiscal
year 2009 and quotations from management in this announcement, as well as
New Oriental's strategic and operational plans, contain forward-looking
statements. New Oriental may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and Exchange
Commission in its annual report 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 New Oriental'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: our growth strategies; our
future business development, results of operations and financial condition;
our ability to attract students without a significant decrease in course
fees; our ability to continue to hire, train and retain qualified teachers;
our ability to maintain and enhance our "New Oriental" brand; our ability
to effectively and efficiently manage the expansion of our school network
and successfully execute our growth strategy; the outcome of ongoing, or
any future, litigation or arbitration, including those relating to
copyright and other intellectual property rights; competition in the
private education sector in China; changes in our revenues and certain cost
or expense items as a percentage of our revenues; the expected growth of
the Chinese private education market; and Chinese governmental policies
relating to private educational services and providers of such services.
Further information regarding these and other risks is included in our
annual report on Form 20-F and other documents filed with the Securities
and Exchange Commission. New Oriental does not undertake any obligation to
update any forward-looking statement, except as required under applicable
law. All information provided in this press release and in the attachments
is as of the date of this press release, and New Oriental undertakes no
duty to update such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement New Oriental's consolidated financial results presented
in accordance with GAAP, New Oriental uses the following measures defined
as non-GAAP financial measures by the SEC: net income excluding share-based
compensation expenses, income from operations excluding share-based
compensation expenses, operating costs and expenses excluding share-based
compensation expenses, general and administrative expenses excluding
share-based compensation expenses, operating margin excluding share-based
compensation expenses and basic and diluted earnings per ADS excluding
share-based compensation expenses. The presentation of these non-GAAP
financial measures is not intended to be considered in isolation 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.
New Oriental 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. New Oriental 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 New Oriental's historical performance
and liquidity. New Oriental computes its non-GAAP financial measures using
the same consistent method from quarter to quarter. New Oriental 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 net income excluding share-based compensation expenses,
and basic and diluted earnings per share and per ADS excluding share-based
compensation expenses is that these non-GAAP measures exclude share-based
compensation charge that has been and will continue to be for the
foreseeable future a significant recurring expense in our 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.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
As of May 31 As of February 29
2008 2008
(Unaudited) (Unaudited)
USD USD
ASSETS:
Current assets:
Cash and cash equivalents 208,440 230,090
Restricted cash 503 490
Term deposits 52,951 29,998
Accounts receivable, net 880 1,157
Inventory 10,693 9,365
Prepaid expenses and other current
assets 13,015 10,161
Total current assets 286,482 281,261
Property, plant and equipment, net 103,098 99,519
Land use right, net 3,509 3,443
Amounts due from related parties -- 20
Deferred tax assets 1,399 1,002
Deposits for business acquisition of
Mingshitang 2,017 --
Trade mark 236 230
Long term investment 2 2
Total assets 396,743 385,477
LIABILITIES, MINORITY INTEREST AND
SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable-trade 7,033 8,059
Accrued expenses and other current
liabilities 28,879 23,361
Income tax payable 2,755 5,312
Amount due to related parties 6 13
Deferred revenue 59,213 35,794
Total current liabilities 97,886 72,539
Total liabilities 97,886 72,539
Minority interest 177 186
Total shareholders' equity 298,680 312,752
Total liabilities, minority interest
and shareholders' equity 396,743 385,477
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for per share and per ADS amounts)
For the Three Months Ended May 31
2008 2007
(Unaudited) (Unaudited)
USD USD
Net Revenues:
Educational Programs and services 35,226 21,897
Books and others 4,942 2,817
Total net revenues 40,168 24,714
Operating costs and expenses (note 1):
Cost of revenues 17,669 11,709
Selling and marketing 7,492 4,997
General and administrative 15,215 11,487
Total operating costs and expenses 40,376 28,193
Operating loss (208) (3,479)
Other income, net 1,119 1,919
Provision for income taxes 806 (14)
Minority interest, net of taxes 45 37
Net Income (loss) 1,762 (1,537)
Net income (loss) per share-basic 0.01 (0.01)
Net income (loss) per share-diluted 0.01 (0.01)
Net income (loss) per ADS-basic (note 2) 0.05 (0.04)
Net income (loss) per ADS-diluted (note 2) 0.05 (0.04)
Notes:
Note 1: Share-based compensation expenses (in thousands) are included in
the operating costs and expenses as follows:
For the Three Months Ended May 31
2008 2007
(Unaudited) (Unaudited)
USD USD
Cost of revenues 206 231
Selling and marketing 41 66
General and administrative 2,498 1,975
Total 2,745 2,272
Note 2: Each ADS represents four common shares.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
(In thousands except share and per ADS amounts)
For the Three Months Ended May 31
2008 2007
(Unaudited) (Unaudited)
USD USD
General and administrative expenses 15,215 11,487
Share-based compensation expense in
general and administrative expenses 2,498 1,975
Non-GAAP general and administrative
expenses 12,717 9,512
Total operating costs and expenses 40,376 28,193
Share-based compensation expenses 2,745 2,272
Non-GAAP operating costs and expenses 37,631 25,921
Operating loss (208) (3,479)
Share-based compensation expenses 2,745 2,272
Non-GAAP operating income (loss) 2,537 (1,207)
Operating margin -0.5% -14.1%
Non-GAAP operating margin 6.3% -4.9%
Net income (loss) 1,762 (1,537)
Share-based compensation expense 2,745 2,272
Non-GAAP net income 4,507 735
Net income (loss) per ADS - basic
(note 1) 0.05 (0.04)
Net income (loss) per ADS - diluted
(note 1) 0.05 (0.04)
Non-GAAP net income per ADS - basic
(note 1) 0.12 0.02
Non-GAAP net income per ADS - diluted
(note 1) 0.12 0.02
Weighted average shares used in
calculating basic net income per ADS
(note 1) 149,975,585 152,004,707
Weighted average shares used in
calculating diluted net income per
ADS (note 1) 155,980,034 152,004,707
Weighted average shares used in
calculating basic non-GAAP net
income per ADS (note 1) 149,975,585 152,004,707
Weighted average shares used in
calculating diluted non-GAAP net
income per ADS (note 1) 155,980,034 158,618,688
Note 1: Each ADS represents four common shares.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for per share and per ADS amounts)
For the Year Ended May 31
2008 2007
(Unaudited) (Unaudited)
USD USD
Net Revenues:
Educational Programs and services 183,917 123,543
Books and others 17,086 9,060
Total net revenues 201,003 132,603
Operating costs and expenses (note 1):
Cost of revenues 77,219 53,744
Selling and marketing 25,617 16,549
General and administrative 52,832 36,218
Total operating costs and expenses 155,668 106,511
Operating income 45,335 26,092
Other income, net 7,149 4,209
Provision for income taxes (3,644) (1,830)
Minority interest, net of taxes 173 128
Net Income 49,013 28,599
Net income per share-basic 0.33 0.21
Net income per share-diluted 0.31 0.20
Net income per ADS-basic (note 2) 1.31 0.85
Net income per ADS-diluted (note 2) 1.25 0.80
Notes:
Note 1: Share-based compensation expenses (in thousands) are included in
the operating costs and expenses as follows:
For the Year Ended May 31
2008 2007
(Unaudited) (Unaudited)
USD USD
Cost of revenues 707 277
Selling and marketing 226 109
General and administrative 7,808 4,262
Total 8,741 4,648
Note 2: Each ADS represents four common shares.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
(In thousands except share and per ADS amounts)
For the Year Ended May 31
2008 2007
(Unaudited) (Unaudited)
USD USD
General and administrative expenses 52,832 36,218
Share-based compensation expense in
general and administrative expenses 7,808 4,262
Non-GAAP general and administrative
expenses 45,024 31,956
Total operating costs and expenses 155,668 106,511
Share-based compensation expenses 8,741 4,648
Non-GAAP operating costs and expenses 146,927 101,863
Operating income 45,335 26,092
Share-based compensation expenses 8,741 4,648
Non-GAAP operating income 54,076 30,740
Operating margin 22.6% 19.7%
Non-GAAP operating margin 26.9% 23.2%
Net income 49,013 28,599
Share-based compensation expense 8,741 4,648
Non-GAAP net income 57,754 33,247
Net income per ADS - basic (note 1) 1.31 0.85
Net income per ADS - diluted (note 1) 1.25 0.80
Non-GAAP net income per ADS - basic
(note 1) 1.54 0.98
Non-GAAP net income per ADS - diluted
(note 1) 1.48 0.93
Weighted average shares used in
calculating basic net income per ADS
(note 1) 149,992,200 135,326,711
Weighted average shares used in
calculating diluted net income per
ADS (note 1) 156,449,101 143,202,314
Weighted average shares used in
calculating basic non-GAAP net
income per ADS (note 1) 149,992,200 135,326,711
Weighted average shares used in
calculating diluted non-GAAP net
income per ADS (note 1) 156,449,101 143,202,314
Note 1: Each ADS represents four common shares.
For investor and media inquiries, please contact:
In China:
Ms. Sisi Zhao
New Oriental Education and Technology Group Inc.
Tel: +86-10-6260-5566 x8203
Email: [email protected]
Mr. Derek Mitchell
Ogilvy Financial, Beijing
Tel: +86-10-8520-6284
Email: [email protected]
In the United States:
Mr. Jeremy Bridgman
Ogilvy Financial, New York
Tel: +1-212-880-5363
Email: [email protected]
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