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NEW ORIENTAL(EDU) - 2023 Q3 - Quarterly Report
EDUNEW ORIENTAL(EDU)2023-04-18 16:00
Transcript

Financial Performance - Total net revenues for the third fiscal quarter of 2023 increased by 22.8% year over year to US754.2million[2].−Operatingincomeroseby147.1754.2 million[2]. - Operating income rose by 147.1% year over year to US66.5 million, with a non-GAAP operating income increase of 179.0% to US87.9million[10].−NetincomeattributabletoNewOrientalincreasedby166.787.9 million[10]. - Net income attributable to New Oriental increased by 166.7% year over year to US81.6 million, with non-GAAP net income rising by 199.9% to US95.4million[11][12].−NetrevenuesforthethreemonthsendedFebruary28,2023,wereUSD754.2million,anincreasefromUSD614.1millioninthesameperiodof2022,representingagrowthofapproximately22.895.4 million[11][12]. - Net revenues for the three months ended February 28, 2023, were USD 754.2 million, an increase from USD 614.1 million in the same period of 2022, representing a growth of approximately 22.8%[29]. - Operating income for the same period was USD 66.5 million, compared to an operating loss of USD 141.2 million in the prior year[29]. - Net income attributable to New Oriental's shareholders for the three months ended February 28, 2023, was USD 81.6 million, a significant recovery from a net loss of USD 122.4 million in the same period of 2022[29]. - Non-GAAP net income for the three months ended February 28, 2023, was 95,362, compared to a non-GAAP net loss of 95,503inthesameperiodlastyear[31].−ThecompanyreportedanetincomeperADSofUSD0.49forthethreemonthsendedFebruary28,2023,comparedtoanetlossperADSofUSD0.72intheprioryear[29].−Thecompanyachievedanon−GAAPnetincomeperADSof95,503 in the same period last year[31]. - The company reported a net income per ADS of USD 0.49 for the three months ended February 28, 2023, compared to a net loss per ADS of USD 0.72 in the prior year[29]. - The company achieved a non-GAAP net income per ADS of 0.57 for the three months ended February 28, 2023, compared to a non-GAAP net loss per ADS of 0.56inthesameperiodlastyear[31].CashFlowandAssets−ThecompanyreportedapositiveoperatingcashflowofUS0.56 in the same period last year[31]. Cash Flow and Assets - The company reported a positive operating cash flow of US190.5 million for the quarter, with cash and cash equivalents totaling approximately US4.3billion[5][13].−CashprovidedbyoperatingactivitiesforthethreemonthsendedFebruary28,2023,was4.3 billion[5][13]. - Cash provided by operating activities for the three months ended February 28, 2023, was 190,482, a turnaround from cash used of 234,965intheprioryear[35].−TotalcurrentassetsasofFebruary28,2023,wereUSD4.7billion,anincreasefromUSD4.5billionasofMay31,2022[27].−Thecompany’scashandcashequivalentswereUSD1.3billionasofFebruary28,2023,upfromUSD1.1billionayearearlier[27].−Thecash,cashequivalents,andrestrictedcashattheendoftheperiodonFebruary28,2023,stoodat234,965 in the prior year[35]. - Total current assets as of February 28, 2023, were USD 4.7 billion, an increase from USD 4.5 billion as of May 31, 2022[27]. - The company’s cash and cash equivalents were USD 1.3 billion as of February 28, 2023, up from USD 1.1 billion a year earlier[27]. - The cash, cash equivalents, and restricted cash at the end of the period on February 28, 2023, stood at 1,431,001, compared to 1,511,242attheendofthesameperiodin2022[35].ExpensesandLiabilities−Operatingcostsandexpensesdecreasedby9.01,511,242 at the end of the same period in 2022[35]. Expenses and Liabilities - Operating costs and expenses decreased by 9.0% year over year to US687.7 million, with general and administrative expenses down by 25.4% to US215.5million[8].−TotalliabilitiesincreasedtoUSD2.3billionasofFebruary28,2023,comparedtoUSD2.2billionasofMay31,2022[27].−TotaloperatingcostsandexpensesfortheninemonthsendedFebruary28,2023,were215.5 million[8]. - Total liabilities increased to USD 2.3 billion as of February 28, 2023, compared to USD 2.2 billion as of May 31, 2022[27]. - Total operating costs and expenses for the nine months ended February 28, 2023, were 1,995,197, down from 3,458,087inthesameperiodof2022,reflectingareductionofapproximately42.43,458,087 in the same period of 2022, reflecting a reduction of approximately 42.4%[37]. Deferred Revenue and Equity - The deferred revenue balance increased by 19.8% year over year to US1,163.2 million as of February 28, 2023[14]. - Deferred revenue as of February 28, 2023, was USD 1.2 billion, compared to USD 933.1 million as of May 31, 2022, indicating a growth of approximately 25%[27]. - New Oriental's total equity increased to USD 3.9 billion as of February 28, 2023, from USD 3.8 billion as of May 31, 2022[27]. Business Operations and Strategy - The total number of schools and learning centers was 712 as of February 28, 2023, a decrease of 135 compared to 847 as of February 28, 2022[4]. - East Buy has achieved significant progress in its private label products and livestreaming e-commerce business, contributing to revenue growth[5]. - The company is focused on expanding its educational services and enhancing its brand presence in the competitive private education sector in China[22]. - The company has repurchased approximately 5.1 million ADSs for approximately US$157.6 million under its share repurchase program[6].