New Oriental Announces Results for the Fourth Fiscal Quarter and the Fiscal Year Ended May 31, 2022 and Adoption of up to US$400 Million Share Repurchase Program

BEIJING, July 27, 2022 /PRNewswire/ -- New Oriental Education & Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the fourth fiscal quarter and fiscal year ended May 31, 2022.

Financial Highlights for the Fourth Fiscal Quarter Ended May 31, 2022

  • Total net revenues decreased by 56.8% year over year to US$524.0 million for the fourth fiscal quarter of 2022.
  • Operating loss was US$105.6 million for the fourth fiscal quarter of 2022.
  • Net loss attributable to New Oriental was US$189.3 million for the fourth fiscal quarter of 2022.

Key Financial Results

(in thousands US$, except per ADS(1) data)

4Q FY2022

4Q FY2021

% of change

Net revenues

524,023

1,211,986

-56.8 %

Operating loss

(105,649)

(102,362)

3.2 %

Non-GAAP operating loss (2)(3)

(76,865)

(82,217)

-6.5 %

Net loss attributable to New Oriental

(189,302)

(45,466)

316.4 %

Non-GAAP net loss attributable to New Oriental (2)(3)

(160,339)

(27,872)

475.3 %

Net loss per ADS attributable to New Oriental - basic

(1.12)

(0.27)

314.7 %

Net loss per ADS attributable to New Oriental - diluted

(1.12)

(0.27)

314.7 %

Non-GAAP net loss per ADS attributable to New Oriental -
basic(3)(4)

(0.94)

(0.16)

472.9 %

Non-GAAP net loss per ADS attributable to New Oriental -
diluted(3)(4)

(0.94)

(0.16)

472.9 %





(in thousands US$, except per ADS(1) data)

FY2022

FY2021

% of change

Net revenues

3,105,246

4,276,539

-27.4 %

Operating (loss) / income

(982,513)

117,266

-937.8 %

Non-GAAP operating (loss) / income (2)(3)

(849,545)

186,146

-556.4 %

Net (loss) / income attributable to New Oriental

(1,187,721)

334,414

-455.2 %

Non-GAAP net (loss) / income attributable to New Oriental (2)(3)

(1,046,238)

389,030

-368.9 %

Net (loss) / income per ADS attributable to New Oriental - basic

(7.00)

2.03

-444.5 %

Net (loss) / income per ADS attributable to New Oriental - diluted

(7.00)

2.02

-445.9 %

Non-GAAP net (loss) / income per ADS attributable to New
Oriental - basic(3)(4)

(6.17)

2.36

-360.9 %

Non-GAAP net (loss) / income per ADS attributable to New
Oriental - diluted(3)(4)

(6.17)

2.35

-361.9 %






 

(1)  Each ADS represents ten common shares. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE. The weighted average number of ADS and earnings per ADS have been retrospectively adjusted to reflect the ADS ratio change from one ADS representing one common share to one ADS representing ten common shares, which became effective on April 8, 2022.

(2)  GAAP represents Generally Accepted Accounting Principles in the United States of America.

(3)  New Oriental provides net (loss) / income attributable to New Oriental, operating (loss) / income and net (loss) / income per ADS attributable to New Oriental on a non-GAAP basis that excludes share-based compensation expenses and gain / (loss) from fair value change of investments to provide supplemental information regarding its operating performance. For more information on these non-GAAP financial measures, please see the section captioned "About Non-GAAP Financial Measures" and the tables captioned "Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures" set forth at the end of this release.

(4)  The Non-GAAP net (loss) / income per ADS attributable to New Oriental is computed using Non-GAAP net (loss) / income attributable to New Oriental and the same number of shares and ADSs used in GAAP basic and diluted EPS calculation.

Operating Highlights for the Fourth Fiscal Quarter Ended May 31, 2022

  • The total number of schools and learning centers was 744 as of May 31, 2022, a decrease of 103 and 925 compared to 847 as of February 28, 2022 and 1,669 as of May 31, 2021, respectively. The total number of schools was 107 as of May 31, 2022.

Michael Yu, New Oriental's Executive Chairman, commented, "Fiscal year 2022 has been a year full of challenges and opportunities. We restructured our core businesses and operations to comply with the government policies in China and stepped onto a new stage. Our remaining key businesses are seeing a stable trend that lays a solid foundation for our future development. In this fiscal year, the overseas test preparation and overseas study consulting businesses increased by 6% and 16% year over year, respectively. Our domestic test preparation business targeting adults and university students witnessed a record rapid growth of approximately 30% year over year. At the same time, various new businesses that we embarked on earlier this year achieved promising results.

The non-academic tutoring business was rolled out in over 50 cities, same as the intelligent learning system and devices that were adopted and tested in around 60 cities. Both have achieved positive customer feedback and improved customer retention. Other businesses, including study tour and research camp, educational materials and digitalized smart study solutions, as well as exam preparation courses designed for students with junior college diplomas to obtain bachelor's degrees, are making remarkable progress. We are confident that by leveraging our brand recognition and educational resources accumulated over our operating history, these new businesses will start to generate notable revenue from the next fiscal year."

Chenggang Zhou, New Oriental's Chief Executive Officer, added, "By the end of this fiscal year, the total number of schools and learning centers was reduced to 744. As we focus more on business opportunities in the major markets of higher-tier cities, we are committed to leveraging our well-developed educational infrastructure, human resources, and state-of-the-art technology across our remaining key businesses. We are also actively looking into new initiatives to provide high-quality and diversified educational services for our customers of all ages. Our online-merge-offline teaching system helped us to maintain a high teaching quality to our customers amid the pandemic – especially in major cities such as Shanghai and Beijing. Koolearn.com, our online education platform, continues to expand its online educational offerings to adults and university students, and actively seeks business opportunities in new areas. In this fiscal year, Koolearn established an e-commerce platform under the brand name DONG FANG ZHEN XUAN(东方甄选) for the sale of agricultural and other products. Koolearn also began to pilot livestreaming events on some famous short-video social platforms such as Douyin. DONG FANG ZHEN XUAN has made notable progress and received wide recognitions from tens of millions of subscribers and members alike."

Stephen Zhihui Yang, New Oriental's Executive President and Chief Financial Officer, commented, "We maintained a strong cash position throughout the whole restructuring process. By the end of this fiscal year, our cash and cash equivalents, term deposits and short-term investments totaled approximately US$4.2 billion. The additional costs and expenses due to the termination of lease agreements in relation to the closure of our learning centers and employee layoffs were largely absorbed in fiscal year 2022. The Company's management team will continue to make great efforts to resume overall profitability of the Company as early as possible and proactively seek profitable growth. Our continued commitment to high quality services and operational efficiency will deliver more value to our customers, society and shareholders over the long term."

Adoption of Share Repurchase Program

On July 26, 2022, New Oriental's board of directors authorized the repurchase of up to US$400 million of the Company's common shares during the period from July 28, 2022 through May 31, 2023.

This share repurchase program authorizes the Company to purchase its ADSs or common shares from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades or through other legally permissible ways in accordance with applicable rules and regulations. The timing and extent of any purchases will depend upon market conditions, the trading price of ADSs and its common shares, as well as other factors.

New Oriental's board of directors will review the share repurchase program periodically and may authorize adjustment to its terms and size accordingly. New Oriental plans to fund any share repurchases made under this program from the Company's available cash balance.

Financial Results for the Fourth Fiscal Quarter Ended May 31, 2022

Net Revenues

For the fourth fiscal quarter of 2022, New Oriental reported net revenues of US$524.0 million, representing a 56.8% decrease year over year. The decline was mainly due to the cessation of K-9 academic after-school tutoring services in compliance with the government policies in China.

Operating Costs and Expenses

Operating costs and expenses for the quarter were US$629.7 million, representing a 52.1% decrease year over year. Non-GAAP operating costs and expenses for the quarter, which exclude share-based compensation expenses, were US$600.9 million, representing a 53.6% decrease year over year. The decrease was primarily due to the reduction of facilities and number of staff as a result of the restructuring in fiscal year 2022.  

  • Cost of revenues decreased by 57.2% year over year to US$247.8 million.
  • Selling and marketing expenses decreased by 50.7% year over year to US$95.8 million.
  • General and administrative expenses for the quarter decreased by 43.9% year over year to US$286.1 million. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, were US$257.2 million, representing a 47.4% decrease year over year.

Total share-based compensation expenses, which were allocated to related operating costs and expenses, increased by 42.9% to US$28.8 million in the fourth fiscal quarter of 2022. The increase is due to the grants of restricted share units of the Company to employees and directors in May 2021 with graded vesting over three years.

Operating Loss and Operating Margin

Operating loss was US$105.6 million, compared to the loss of US$102.4 million in the same period of the prior fiscal year. Non-GAAP loss from operations for the quarter was US$76.9 million, compared to the loss of US$82.2 million in the same period of the prior fiscal year.

Operating margin for the quarter was negative 20.2%, compared to negative 8.4% in the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses, for the quarter was negative 14.7%, compared to negative 6.8% in the same period of the prior fiscal year.

Net Loss and Net Loss per ADS

Net loss attributable to New Oriental for the quarter was US$189.3 million, compared to the loss of US$45.5 million in the same period of the prior fiscal year. Basic and diluted net loss per ADS attributable to New Oriental were US$1.12 and US$1.12, respectively.

Non-GAAP Net Loss and Non-GAAP Net Loss per ADS

Non-GAAP net loss attributable to New Oriental for the quarter was US$160.3 million, compared to the loss of US$27.9 million in the same period of the prior fiscal year. Non-GAAP basic and diluted net loss per ADS attributable to New Oriental were US$0.94 and US$0.94, respectively.

Cash Flow

Net operating cash flow for the fourth fiscal quarter of 2022 was approximately US$29.3 million and capital expenditures for the quarter were US$22.3 million.

Balance Sheet

As of May 31, 2022, New Oriental had cash and cash equivalents of US$1,148.6 million. In addition, the Company had US$1,140.1 million in term deposits and US$1,902.3 million in short-term investment.

New Oriental's deferred revenue balance, which is cash collected from registered students for courses and recognized proportionally as revenue as the instructions are delivered, at the end of the fourth quarter of fiscal year 2022 was US$933.1 million, a decrease of 51.6% as compared to US$1,926.4 million at the end of the fourth quarter of fiscal year 2021. The decrease is primarily due to the cessation of K-9 academic after-school tutoring services in compliance with the government policies in China.

Financial Results for the Fiscal Year Ended May 31, 2022

For the fiscal year 2022 ended May 31, 2022, New Oriental reported net revenues of US$3,105.2 million, representing a 27.4% decrease year over year.

Loss from operations for the fiscal year 2022 was US$982.5 million, compared to an income of US$117.3 million in the same period of the prior fiscal year. Non-GAAP loss from operations for the fiscal year 2022 was US$849.5 million, compared to an income of US$186.1 million in the same period of the prior fiscal year.

Operating margin for the fiscal year 2022 was negative 31.6%, compared to 2.7% for the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses for the fiscal year 2022, was negative 27.4%, compared to 4.4% for the same period of the prior fiscal year.

Net loss attributable to New Oriental for the fiscal year 2022 was US$1,187.7 million, compared to an income of US$334.4 million in the same period of the prior fiscal year. Basic and diluted net loss per ADS attributable to New Oriental for the fiscal year 2022 amounted to US$7.00 and US$7.00, respectively.

Non-GAAP net loss attributable to New Oriental for the fiscal year 2022 was US$1,046.2 million, compared to an income of US$389.0 million in the same period of the prior fiscal year. Non-GAAP basic and diluted net loss per ADS attributable to New Oriental for the fiscal year 2022 amounted to US$6.17 and US$6.17, respectively.

Outlook for the First Quarter of the Fiscal Year 2023

New Oriental expects total net revenues in the first quarter of the fiscal year 2023 (June 1, 2022 to August 31, 2022) to be in the range of US$641.3 million to US$680.6 million, representing year-over-year decline in the range of 51% to 48%.

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 at 8 AM on July 27, 2022, U.S. Eastern Time (8 PM on July 27, 2022, Beijing/Hong Kong Time). 

Please register in advance of the conference, using the link provided below. Upon registering, you will be provided with participant dial-in numbers, passcode and unique registrant ID.

Conference call registration link: https://s1.c-conf.com/diamondpass/10023381-cbs76d.html. It will automatically direct you to the registration page of "New Oriental Fourth Fiscal Quarter 2022 Earnings Conference Call" where you may fill in your details for RSVP.

In the 10 minutes prior to the call start time, you may use the conference access information (including dial in number(s), direct event passcode and registrant ID) provided in the confirmation email received at the point of registering.

A replay of the conference call may be accessed by phone at the following number until August 3, 2022:

Mainland China:

400 1209 216

Hong Kong:      

800 930 639

US/Canada:

1855 883 1031



Passcode: 

10023381

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org.

About New Oriental

New Oriental is a provider of private educational services in China offering a wide range of educational programs, services and products to a varied student population throughout China. New Oriental's program, service and product offerings mainly consist of test preparation, language training for adults, education materials and distribution, online education, and other services. New Oriental is listed on NYSE (NYSE: EDU) and SEHK (9901.SEHK), respectively. New Oriental's ADSs, each of which represents ten common shares. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE.

For more information about New Oriental, please visit http://www.neworiental.org/english/.

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 the first quarter of fiscal year 2023, 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 reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports 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 ability to attract students without a significant increase 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; Chinese governmental policies relating to private educational services and providers of such services; health epidemics and other outbreaks in China; and general economic conditions in China. 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 and gain / (loss) from fair value change of long-term investments, operating income excluding share-based compensation expenses, operating cost 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 net income per ADS and per share excluding share-based compensation expenses and gain / (loss) from fair value change of long-term investments. 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 tables 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 compensation expenses and gain / (loss) from fair value change of long-term investments that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to 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 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 these non-GAAP measures is that they exclude share-based compensation charge and gain / (loss) from fair value change of long-term investments 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.

Contacts

For investor and media inquiries, please contact:


Ms. Rita Fong 

Ms. Sisi Zhao

FTI Consulting 

New Oriental Education & Technology Group Inc.

Tel:        +852 3768 4548

Tel:         +86-10-6260-5568

Email:    rita.fong@fticonsulting.com 

Email:     zhaosisi@xdf.cn 

 

 

 

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.


CONDENSED CONSOLIDATED BALANCE SHEETS


(In thousands)



As of May 31


As of May 31


2022


2021


(Unaudited)


(Audited)



USD


USD


ASSETS:





Current assets:





Cash and cash equivalents

1,148,637


1,612,211


Term deposits

1,140,066


1,214,025


Short-term investments

1,902,254


3,434,726


Accounts receivable, net

16,430


8,667


Inventory, net

27,925


31,175


Prepaid expenses and other current assets, net

215,402


269,233


Amounts due from related parties, current

23,245


4,118


Total current assets

4,473,959


6,574,155







Restricted cash, non-current

45,890


19,916


Property and equipment, net

402,690


865,030


Land use rights, net

3,627


13,989


Amounts due from related parties, non-current

3,365


4,157


Long-term deposits

33,409


74,796


Intangible assets, net

2,800


4,836


Goodwill, net

70,803


73,254


Long-term investments, net

437,919


537,749


Deferred tax assets, non-current, net

20,038


103,587


Right-of-use assets

531,102


1,857,533


Other non-current assets

9,064


22,051


Total assets

6,034,666


10,151,053







LIABILITIES AND EQUITY





Current liabilities:





Accounts payable

22,289


38,441


Accrued expenses and other current liabilities

510,264


908,231


Income taxes payable

75,650


84,321


Amounts due to related parties

226


33


Deferred revenue

933,062


1,926,386


Operating lease liability-current

168,623


514,033


Total current liabilities

1,710,114


3,471,445







Deferred tax liabilities, non-current

19,240


13,172


Unsecured senior notes

65,394


297,631


Operating lease liabilities

446,394


1,350,629


Total long-term liabilities

531,028


1,661,432







Total liabilities

2,241,142


5,132,877







Equity





  New Oriental Education & Technology Group Inc. shareholders' equity

3,705,506


4,913,275


  Non-controlling interests

88,018


104,901


Total equity

3,793,524


5,018,176







Total liabilities and equity

6,034,666


10,151,053







 

 

 


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


2022


2021


(Unaudited)


(Unaudited)


USD


USD

Net revenues

524,023


1,211,986





Operating cost and expenses (note 1)




Cost of revenues

247,827


578,847

Selling and marketing

95,786


194,223

General and administrative

286,059


509,484

Impairment loss on intangible assets and goodwill

-


31,794

Total operating cost and expenses

629,672


1,314,348

Operating loss

(105,649)


(102,362)

(Loss)/Gain from fair value change of long-term investments

(1,682)


773





Other (loss)/ income, net

(68,396)


5,957

(Provision)/Benefits for income taxes

(5,618)


29,322

Loss from equity method investments

(5,322)


(8,924)

Net loss

(186,667)


(75,234)





Add: Net (gain)/loss attributable to non-controlling interests

(2,635)


29,768

Net loss attributable to New Oriental Education & Technology
Group Inc.'s shareholders

(189,302)


(45,466)









Net loss per share attributable to New Oriental-Basic (note 2)

(0.11)


(0.03)





Net loss per share attributable to New Oriental-Diluted (note 2)

(0.11)


(0.03)





Net loss per ADS attributable to New Oriental-Basic (note 2)

(1.12)


(0.27)





Net loss per ADS attributable to New Oriental-Diluted (note 2)

(1.12)


(0.27)









 

 

 

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES

(In thousands except for per share and per ADS amounts)




For the Three Months Ended May 31


2022


2021


(Unaudited)


(Unaudited)


USD


USD





General and administrative expenses

286,059


509,484

Less: Share-based compensation expenses in
general and administrative expenses

28,838


20,605

Non-GAAP general and administrative expenses

257,221


488,879





Total operating cost and expenses

629,672


1,314,348

Less: Share-based compensation expenses

28,784


20,145

Non-GAAP operating cost and expenses

600,888


1,294,203





Operating loss

(105,649)


(102,362)

Add: Share-based compensation expenses

28,784


20,145

Non-GAAP operating loss

(76,865)


(82,217)





Operating margin

-20.2 %


-8.4 %

Non-GAAP operating margin

-14.7 %


-6.8 %





Net loss attributable to New Oriental

(189,302)


(45,466)

Add: Share-based compensation expenses

27,281


18,367

Less: (loss)/gain from fair value change of long-
term investments

(1,682)


773

Non-GAAP net loss attributable to New Oriental

(160,339)


(27,872)





Net loss per ADS attributable to New Oriental-
Basic (note 2)

(1.12)


(0.27)

Net loss per ADS attributable to New Oriental-
Diluted (note 2)

(1.12)


(0.27)





Non-GAAP net loss per ADS attributable to New
Oriental - Basic (note 2)

(0.94)


(0.16)

Non-GAAP net loss per ADS attributable to New
Oriental - Diluted (note 2)

(0.94)


(0.16)





Weighted average shares used in calculating basic
net loss per ADS (note 2)

               

1,696,966,183


               

1,690,082,150

Weighted average shares used in calculating
diluted net loss per ADS (note 2)

               

1,696,966,183


              

1,690,082,150





Non-GAAP net loss per share - basic

(0.09)


(0.02)

Non-GAAP net loss per share - diluted

(0.09)


(0.02)

 

 

Notes:





Note 1: Share-based compensation expenses (in thousands) are included in the operating cost and expenses as
follows:






For the Three Months Ended May 31


2022


2021


(Unaudited)


(Unaudited)


USD


USD

Cost of revenues

26


469

Selling and marketing

(80)


(929)

General and administrative

28,838


20,605

Total

28,784


20,145





 

 

 

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)






For the Three Months Ended May 31



2022


2021



(Unaudited)


(Unaudited)



USD


USD







Net cash provided by operating activities

29,347


318,427


Net cash used in investing activities

(238,428)


(277,371)


Net cash (used in)/ provided by financing activities

(50,872)


3,167


Effect of exchange rate changes

(56,762)


1,712







Net change in cash, cash equivalents and restricted cash

(316,715)


45,935







Cash, cash equivalents and restricted cash at beginning
of period

1,511,242


 

1,586,192







Cash, cash equivalents and restricted cash at end of
period

1,194,527


 

1,632,127


 

 

 

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


2022


2021


(Unaudited)


(Unaudited)


USD


USD

 

Net revenues

3,105,246


4,276,539





Operating costs and expenses (note 1):




 

Cost of revenues

1,754,291


2,036,875

Selling and marketing

466,895


600,778

General and administrative

1,866,573


1,489,826

Impairment loss on intangible assets and goodwill

-


31,794

Total operating costs and expenses

4,087,759


4,159,273

Operating (loss)/income

(982,513)


117,266

Loss from fair value change of investments

(14,933)


(3,824)





Other (loss)/income , net

(35,052)


201,535

Provision for income taxes

(136,312)


(83,588)

Loss from equity method investments

(51,466)


(1,368)

Net (loss)/income

(1,220,276)


230,021





Add: Net loss attributable to non-controlling interests

32,555


104,393

Net (loss)/income attributable to New Oriental
Education & Technology Group Inc.

(1,187,721)


334,414









Net (loss)/income per share attributable to New
Oriental-Basic (note 2)

(0.70)


0.20





Net (loss)/income per share attributable to New
Oriental-Diluted (note 2)

(0.70)


0.20





Net (loss)/income per ADS attributable to New Oriental-
Basic (note 2)

(7.00)


2.03





Net (loss)/income per ADS attributable to New Oriental-
Diluted (note 2)

(7.00)


2.02

 

 

 

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES

(In thousands except for per share and per ADS amounts)




For the Year Ended May 31


2022


2021


(Unaudited)


(Unaudited)


USD


USD





General and administrative expenses

1,866,573


1,489,826

Less: Share-based compensation expenses in general
and administrative expenses

135,536


55,260

Non-GAAP general and administrative expenses

1,731,037


1,434,566





Total operating costs and expenses

4,087,759


4,159,273

Less: Share-based compensation expenses

132,968


68,880

Non-GAAP operating costs and expenses

3,954,791


4,090,393





Operating (loss)/income

(982,513)


117,266

Add: Share-based compensation expenses

132,968


68,880

Non-GAAP operating (loss)/income

(849,545)


186,146





Operating margin

-31.6 %


2.7 %

Non-GAAP operating margin

-27.4 %


4.4 %





Net (loss)/income attributable to New Oriental

(1,187,721)


334,414

Add: Share-based compensation expenses

126,550


50,792

Less: Loss from fair value change of long-term
investments

(14,933)


(3,824)

Non-GAAP net (loss)/income attributable to New
Oriental

(1,046,238)


389,030





Net (loss)/income per ADS attributable to New
Oriental- Basic (note 2)

(7.00)


2.03

Net (loss)/income per ADS attributable to New
Oriental- Diluted (note 2)

(7.00)


2.02





Non-GAAP net (loss)/income per ADS attributable to
New Oriental - Basic (note 2)

(6.17)


2.36

Non-GAAP net (loss)/income per ADS attributable to
New Oriental - Diluted (note 2)

(6.17)


2.35





Weighted average shares used in calculating basic net
(loss)/income per ADS (note 2)

1,696,419,232


1,645,463,440

Weighted average shares used in calculating diluted
net (loss)/income per ADS (note 2)

1,696,419,232


1,651,982,384





Non-GAAP net (loss)/income per share - basic

(0.62)


0.24

Non-GAAP net (loss)/income per share - diluted

(0.62)


0.24

 

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


2022


2021


(Unaudited)


(Unaudited)


USD


USD

Cost of revenues

(131)


6,698

Selling and marketing

(2,437)


6,922

General and administrative

135,536


55,260

Total

132,968


68,880





Note 2: Each ADS represents ten common shares. For the three months and the year ended May 51, 2021, the
weighted average number of ADS and earnings per ADS have been retrospectively adjusted to reflect the
ADS ratio change from one ADS representing one common share to one ADS representing ten common
shares, which became effective on April 8, 2022.

 

 

 

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)






For the Year Ended May 31



2022


2021



(Unaudited)


(Unaudited)



USD


USD







 

Net cash (used in) /provided by operating activities

(1,280,453)


1,130,085


 

Net cash provided by/ (used in) investing activities

1,168,532


(2,177,639)


 

Net cash (used in) /provided by financing activities

(230,858)


1,654,084


 

Effect of exchange rate changes

(94,821)


106,173







 

Net change in cash, cash equivalents and restricted cash

(437,600)


712,703







 

Cash, cash equivalents and restricted cash at beginning of
period

1,632,127


                      

 

919,424







 

Cash, cash equivalents and restricted cash at end of period

1,194,527


1,632,127


 

View original content:https://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-fourth-fiscal-quarter-and-the-fiscal-year-ended-may-31-2022-and-adoption-of-up-to-us400-million-share-repurchase-program-301594215.html


Source: New Oriental Education and Technology Group Inc. Related Stocks: HongKong:9901 NYSE:EDU
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