Bright Scholar(BEDU) - 2019 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q4 2019, the revenue was RMB711.6 million, representing a year-over-year growth of 82.6%, with RMB121.8 million coming from CATS [11][19] - Fiscal 2019 revenue grew 49.1% year-over-year to RMB2.5663 billion, exceeding guidance by 4.2% [19] - Adjusted gross profit increased by 57.5%, adjusted operating income by 22%, adjusted EBITDA by 20.2%, and adjusted net income by 15.2% [12] Business Line Data and Key Metrics Changes - Domestic K-12 revenue grew 24.1% to RMB1.89 billion for the year and 24.6% to RMB393.5 million for the quarter [19] - Revenue from overseas schools was RMB148.5 million for the quarter and RMB181.8 million for the fiscal year, accounting for 20.9% and 7.1% of total revenue respectively [20][21] - Complementary education revenue for the quarter was RMB169.6 million, up 129.3%, and RMB490.8 million for the year, up 150.4% [21] Market Data and Key Metrics Changes - The overseas schools and complementary education segments accounted for 26.2% of total revenue for fiscal 2019, up from 11.4% in fiscal 2018 [12] - Enrollment growth was strong at 27.4% for fiscal 2019, driven by marketing investments [13] Company Strategy and Development Direction - The company aims to build a global premier education service company through M&A and organic growth, expanding its global footprint and service offerings [8][10] - Integration of acquired businesses is a key strategic imperative to optimize synergies and operational efficiency [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing the transformational nature of fiscal 2019 and the strong foundation for future success [28] - The guidance for fiscal 2020 anticipates total revenue between RMB4 billion to RMB4.1 billion, representing a year-over-year growth of 56% to 60% [26] Other Important Information - The company completed several acquisitions, including Barmasa Collegial School and Bosworth Independent College, enhancing its global school network [9] - Cash and cash equivalents totaled RMB3.265 billion as of August 31, 2019, up from RMB2.057 billion [27] Q&A Session Summary Question: Impact of acquired overseas schools on sales and bottom line - Management clarified that the contribution from newly acquired schools would start in the first fiscal quarter of 2020, as the transactions were completed in early September [30][31] Question: Enrollment growth guidance - Management indicated that enrollment growth would be consistent across segments, with ASP growth in kindergartens affected by the acquisition of lower-priced segments [34][35]