FOSHAN, China, July 26, 2017 /PRNewswire/ -- Bright Scholar
Education Holdings Limited ("Bright Scholar," the "Company," "we"
or "our") (NYSE: BEDU), the largest operator of international and
bilingual K-12 schools in China*,
today announced its unaudited financial results for the third
fiscal quarter ended May 31,
2017.
* In terms of student
enrollment as of September 1, 2016, according to an industry report
commissioned by Bright Scholar and prepared by Frost & Sullivan
in 2017.
|
Third Fiscal Quarter Ended May 31,
2017 Financial Highlights (in comparison to the same
period of last fiscal year)
- Revenue was RMB406.7 million, up
28.1%
- Gross profit was RMB183.8
million, up 51.5%; gross margin was 45.2%, up from
38.2%
- Operating income was RMB121.8
million, up 66.5%; operating margin was 30.0%, up from
23.1%
- Net income was RMB107.5 million,
up 85.7%; adjusted net income(1) was RMB107.5 million, up 85.7%; net margin was
26.4%%, up from 18.2%%; adjusted net margin(1) was
26.4%, up from 18.2%
- EPS was RMB1.05, up 150.0%;
adjusted EPS(2) was RMB1.05, up 150.0%
- Adjusted EBITDA(3) was RMB145.2 million, up 59.3%; adjusted EBITDA
margin(3) was 35.7%, up from 28.7%
Nine Months Ended May 31, 2017
Financial Highlights (in comparison to the same period of last
fiscal year)
- Revenue was RMB1,052.9 million,
up 28.2%
- Gross profit was RMB399.7
million, up 55.1%; gross margin was 38.0%, up from
31.4%
- Operating income was RMB231.5
million, up 731.2%; operating margin was 22.0%, up from
3.4%
- Net income was RMB195.5 million,
up from RMB6.8 million; adjusted net
income(1) was RMB195.5
million, up 91.9%; net margin was 18.6%%, up from 0.8%%;
adjusted net margin(1) was 18.6%, up from 12.4%
- EPS was RMB1.74, up 721.4%;
adjusted EPS(2) was RMB1.74, up 145.1%
- Adjusted EBITDA(3) was RMB296.5 million, up 72.2%; adjusted EBITDA
margin(3) was 28.2%, up from 21.0%
(1) Adjusted net
income is defined as net income excluding share-based compensation
expenses. Adjusted net margin is defined as adjusted net income
divided by revenue.
|
(2) Adjusted EPS is
defined as adjusted net income divided by the weighted average
number of ordinary shares or American depositary shares (each an
"ADS"), each representing one Class A ordinary share of the
Company, on an as-converted basis
|
(3) Adjusted EBITDA
is defined as EBITDA (which refers to income from operations, which
excludes interest income, income tax benefit and expense and
depreciation and amortization expenses) excluding share-based
compensation expenses. Adjusted EBITDA margin is defined as
adjusted EBITDA divided by revenue.
For more information on these adjusted financial measures, please
see the section captioned under "Non-GAAP Financial Measures" and
the tables captioned "Reconciliation of GAAP and Non-GAAP Results"
set forth at the end of this release.
|
Mr. Junli He, Bright Scholar's
Chief Executive Officer, commented, "Today we announce our first
quarterly earnings as an NYSE-listed public company."
We are proud to report the academic achievements of our
international schools as well as bilingual schools. For our
international schools, all of the 216 graduates for the 2017 class
were admitted into overseas universities, 96% of students enrolled
in DP, A-level, AP programs were admitted into global top 100
institutions, and 87% were admitted into global top 50
institutions, as ranked by either the QS World University Rankings
or U.S. News, or world top 5 in their specialized fields. For
our bilingual schools, most also achieved historical new highs in
performance in local Zhongkao with average scores significantly
above other local schools. The academic achievements
demonstrated the execution of our mission to deliver quality
education to students.
We have seen robust growth in our international schools,
bilingual schools and kindergartens, as well as strong earnings
performance, with our revenue increasing by 28.1% for our third
fiscal quarter and 28.2% for the nine months. With the addition of
one kindergarten since the IPO, we had over 30,000 students and
over 3,000 teachers in 52 schools as of May
31, 2017."
"Our profits have significantly increased over the period, by
85.7%, supported by a strong margin expansion at 26.4%," Mr. He
continued. "We have also improved utilization of our schools, and
optimized fee levels across all segments."
"We have laid down growth strategies to deliver long-term
success," Mr. He added. "We will continue to expand and enhance our
school network nationwide through our partnership with real estate
developer Country Garden Holdings Company Limited and other
third-party developers, and deepen our cooperation with world-class
institutions. We will enhance our complementary education
programs—after school tutoring, summer and winter camps, test
preparation and college counseling. We will also selectively
explore local and overseas M&A opportunities. On this front, I
am very pleased to announce our investment in Can-achieve
(Beijing) Education Consultants
Co., Ltd., which represents a major expansion in college
counseling, student recruitment for universities, test preparation
and study camps. Founded in 2008, Can-achieve has operations in
Beijing, Guangzhou, Zhengzhou and Hong
Kong, representing over 600 prestigious overseas
universities, including 273 universities in the United States and Canada, where it has the largest market share
in this segment, with 23 universities in the U.S. top 50/QS 100
rankings. We invested RMB78.75
million in Can-achieve for a 21% equity stake in
July 2017."
Mr. He concluded, "supported by tremendous market potential from
a large population base and growing demand for K-12 private
education in China, we are
executing our mission to deliver world-class education to students
in China and globally. With our
proven growth strategies, we are confident that we can maintain and
extend our market leadership, and reward students and shareholders
alike with greater value."
THIRD FISCAL QUARTER ENDED MAY 31,
2017 UNAUDITED FINANCIAL RESULTS
Revenues
Revenues for the third fiscal quarter were RMB406.7
million, representing 28.1% increase from RMB317.4 million in the same period of last
fiscal year.
The table below sets forth a breakdown of revenues:
|
Third Fiscal
Quarter
Ended May 31, 2017
|
Third Fiscal
Quarter Ended May 31, 2016
|
YoY %
Change
|
|
(RMB in
million)
|
(RMB in
million)
|
|
International
Schools
|
157.8
|
127.0
|
24.3%
|
Bilingual
Schools
|
126.9
|
98.1
|
29.4%
|
Kindergartens
|
96.1
|
76.2
|
26.1%
|
Complementary
|
25.9
|
16.1
|
60.9%
|
Total
|
406.7
|
317.4
|
28.1%
|
International Schools: Revenue for the quarter was
RMB157.8 million, representing a
24.3% increase from RMB127.0 million,
accounting for 38.8% of total revenues as compared to 40.0% in the
same period of last fiscal year, primarily due to a 18.9% increase
in the average number of students from 5,464 to 6,498, and a 4.5%
increase in the average tuition and fees from RMB23,248 to RMB24,298 during the comparison periods.
Bilingual Schools: Revenue for the quarter was
RMB126.9 million, representing a
29.4% increase from RMB98.1 million,
accounting for 31.2% of total revenues as compared to 30.9% in the
same period of last fiscal year, primarily due to a 15.3% increase
in the average number of students from 11,482 to 13,241, and a
12.2% increase in the average tuition and fees from RMB8,543 to RMB9,582 during the comparison periods.
Kindergartens: Revenue for the quarter was RMB96.1 million, representing a 26.1% increase
from RMB76.2 million, accounting for
23.6% of total revenues as compared to 24.0% in the same period of
last fiscal year, primarily due to a 14.5% increase in the average
number of students from 9,262 to 10,604, and a 10.1% increase in
the average tuition and fees from RMB8,228 to RMB9,063 during the comparison periods.
Complementary: Revenue for the quarter was RMB25.9 million, representing a 60.9% increase
from RMB16.1 million, accounting for
6.4% of total revenues as compared to 5.1% in the same period of
last fiscal year, primarily due to an increase in the revenue of
élan English learning centers from RMB12.5
million to RMB24.1 million
during the comparison periods.
Cost of Revenues
Cost of revenues for the quarter was RMB223.0 million,
representing a 13.7% increase from RMB196.1 million in
the same period of last fiscal year, primarily due to a
RMB17.7 million increase in staff
costs as a result of an increase in the number of teachers and
educational staff needed to support the expansion of our school
network. The average number of our teachers and instructors
increased by 9.8% from 2,870 to 3,150 during the comparison
periods.
International Schools: Cost of revenues for the quarter
was RMB90.9 million, representing a
13.8% increase from RMB79.9 million
in the same period of last fiscal year.
Bilingual Schools: Cost of revenues for the quarter was
RMB70.9 million, representing a 13.8%
increase from RMB62.3 million in the
same period of last fiscal year.
Kindergartens: Cost of revenues for the quarter was
RMB46.5 million, representing a 6.6%
increase from RMB43.6 million in the
same period of last fiscal year.
Complementary: Cost of revenues for the quarter was
RMB14.8 million, representing a 41.9%
increase from RMB10.4 million in the
same period of last fiscal year, primarily due to an increase in
teaching staff cost and rental cost from élan English training
business.
Gross Profit and Gross Margin
Gross profit for the quarter was RMB183.8 million,
representing a 51.5% increase from RMB121.3 million in
the same period of last fiscal year. Gross margin for the quarter
was 45.2%, as compared to 38.2% in the same period of last fiscal
year, primarily due to the ramp up of our existing schools,
increased average tuition and fees, and improved operating
efficiency.
International Schools: Gross profit for the quarter was
RMB67.0 million, representing a 42.1%
increase from RMB47.2 million in the
same period of last fiscal year. Gross margin for the quarter was
42.4%, as compared to 37.1% in the same period of last fiscal
year.
Bilingual Schools: Gross profit for the quarter was
RMB56.0 million, representing a 56.4%
increase from RMB35.8 million in the
same period of last fiscal year. Gross margin for the quarter was
44.1%, as compared to 36.5% in the same period of last fiscal
year.
Kindergartens: Gross profit for the quarter was
RMB49.7 million, representing a 52.3%
increase from RMB32.6 million in the
same period of last fiscal year. Gross margin for the quarter was
51.7%, as compared to 42.8% in the same period of last fiscal
year.
Complementary: Gross profit for the quarter was
RMB11.1 million, representing a 95.7%
increase from RMB5.7 million in the
same period of last fiscal year, primarily due to an increase in
the gross profit of élan English training business. Gross margin
for the quarter was 42.9%, as compared to 35.2% in the same period
of last fiscal year.
Selling, General and Administrative Expenses and
Adjusted SG&A Expenses (4)
Total selling, general and administrative expenses for the
quarter were RMB65.2 million,
representing a 32.4% increase from RMB49.3 million in the same
period of last fiscal year, accounting for 16.0% of total revenues
as compared to 15.5% in the same period of last fiscal year,
primarily due to an approximately RMB10.0
million in expenses incurred in connection with the
Company's IPO in the third fiscal quarter of 2017.
Adjusted SG&A expenses(4) for the quarter were
RMB65.2 million, representing a 32.4%
increase from RMB49.3 million in the same period of last
fiscal year, accounting for 16.0% of total revenues as compared to
15.5% in the same period of last fiscal year.
(4) Adjusted SG&A
Expenses are defined as selling, general and administrative
expenses excluding share-based compensation
expenses.
|
Operating Income and Operating Margin
Operating Income for the quarter was RMB121.8 million, representing a 66.5% increase
from RMB73.2 million in the same period of last fiscal year.
Operating margin for the quarter was 30.0%, as compared to 23.1% in
the same period of last fiscal year.
Net Income and Adjusted Net
Income
Net income attributed to the Company for the quarter was
RMB107.5 million, representing a
85.7% increase from RMB57.9 million
in the same period of the last fiscal year.
Adjusted net income attributed to the Company for the quarter
was RMB107.5 million, representing a 85.7% increase
from RMB57.9 million in the same period of last fiscal
year.
Earnings per ordinary share/ADS and Adjusted Earnings per
ordinary share/ADS
Basic and diluted net income per ordinary share/ADS attributable
to ordinary shareholders/ADS holders, on an as-converted basis, for
the quarter was RMB1.05
and RMB1.05, respectively, as compared to RMB0.42 and RMB0.42, respectively, in the same period of last
fiscal year.
Adjusted basic and diluted net income per ordinary share/ADS
attributable to ordinary shareholders/ADS holders, on an
as-converted basis, for the quarter was RMB1.05 and RMB1.05, respectively, as compared to
RMB0.42 and RMB0.42, respectively, in the same period of last
fiscal year.
Adjusted EBITDA
Adjusted EBITDA for the quarter was RMB145.2 million, representing a 59.3% increase
from RMB91.1 million in the same
period of last fiscal year.
FIRST NINE MONTHS ENDED MAY 31,
2017 UNAUDITED FINANCIAL RESULTS
Revenues
Revenues for the first nine months of 2017 were RMB1,052.9
million, representing 28.2% increase from RMB821.1 million in the same period of last
fiscal year.
The table below sets forth a breakdown of revenues:
|
Nine Months
Ended May 31,
2017
|
Nine
Months Ended May 31,
2016
|
YoY %
Change
|
|
(RMB in
million)
|
(RMB in
million)
|
|
International
Schools
|
410.1
|
341.4
|
20.1%
|
Bilingual
Schools
|
330.3
|
260.0
|
27.0%
|
Kindergartens
|
245.6
|
198.7
|
23.6%
|
Complementary
|
66.9
|
21.0
|
218.0%
|
Total
|
1,052.9
|
821.1
|
28.2%
|
International Schools: Revenue for the period was
RMB410.1 million, representing a
20.1% increase from RMB341.4 million,
accounting for 38.9% of total revenues as compared to 41.6% in the
same period of last fiscal year, primarily due to a 17.0% increase
in the average number of students from 5,448 to 6,372, and a 2.7%
increase in the average tuition and fees from RMB62,668 to RMB64,355 during the comparison periods.
Bilingual Schools: Revenue for the period was
RMB330.3 million, representing a
27.0% increase from RMB260.0 million,
accounting for 31.4% of total revenues as compared to 31.7% in the
same period of last fiscal year, primarily due to a 15.3% increase
in the average number of students from 11,424 to 13,169, and a
10.2% increase in the average tuition and fees from RMB22,760 to RMB25,079 during the comparison periods.
Kindergartens: Revenue for the period was RMB245.6 million, representing a 23.6% increase
from RMB198.7 million, accounting for
23.3% of total revenues as compared to 24.2% in the same period of
last fiscal year, primarily due to a 13.6% increase in the average
number of students from 8,862 to 10,071, and a 8.8% increase in the
average tuition and fees from RMB22,418 to RMB24,391 during the comparison periods.
Complementary: Revenue for the period was RMB66.9 million, representing a 218.0% increase
from RMB21.0 million, accounting for
6.4% of total revenues as compared to 2.6% in the same period of
last fiscal year, primarily due to an increase in the revenue of
élan English learning center from RMB14.2
million to RMB55.3 million
during the comparison periods. We acquired élan English proficiency
training business in January
2016.
Cost of Revenues
Cost of revenues for the period was RMB653.2 million,
representing 15.9% increase from RMB563.4 million in the
same period of last fiscal year, primarily due to a RMB74.5 million increase in staff costs as a
result of an increase in the number of teachers and educational
staff needed to support the expansion of our school network. The
average number of our teachers and instructors increased by 9.3%
from 2,857 to 3,122 during the comparison periods.
International Schools: Cost of revenues for the period
was RMB267.7 million, representing a
13.7% increase from RMB235.5 million
in the same period of last fiscal year.
Bilingual Schools: Cost of revenues for the period was
RMB206.0 million, representing a
11.6% increase from RMB184.6 million
in the same period of last fiscal year.
Kindergartens: Cost of revenues for the period was
RMB137.1 million, representing a 6.0%
increase from RMB129.3 million in the
same period of last fiscal year.
Complementary: Cost of revenues for the quarter was
RMB42.4 million, representing a
203.2% increase from RMB14.0 million
in the same period of last fiscal year, primarily due to an
increase in teaching staff cost and rental cost from élan English
training business. We acquired élan English proficiency training
business in January 2016.
Gross Profit and Gross Margin
Gross profit for the period was RMB399.7 million,
representing a 55.1% increase from RMB257.7 million in
the same period of last fiscal year. Gross margin for the period
was 38.0%, as compared to 31.4% in the same period last fiscal
year, primarily due to ramp up of our existing schools, increased
average tuition and fees, and improved operating efficiency.
International Schools: Gross profit for the period was
RMB142.3 million, representing a
34.4% increase from RMB105.9 million
in the same period of last fiscal year. Gross margin for the
quarter was 34.7%, as compared to 31.0% in the same period of last
fiscal year.
Bilingual Schools: Gross profit for the period was
RMB124.3 million, representing a
64.8% increase from RMB75.4 million
in the same period of last fiscal year. Gross margin for the
quarter was 37.6%, as compared to 29.0% in the same period of last
fiscal year.
Kindergartens: Gross profit for the period was
RMB108.5 million, representing a
56.6% increase from RMB69.3 million
in the same period of last fiscal year. Gross margin for the
quarter was 44.2%, as compared to 34.9% in the same period of last
fiscal year.
Complementary: Gross profit for the period was
RMB24.6 million, representing a
247.3% increase from RMB7.1 million
in the same period of last fiscal year, primarily due to an
increase in the gross profit from élan English training business.
Gross margin for the quarter was 36.7%, as compared to 33.6% in the
same period of last fiscal year.
Selling, General and Administrative Expenses and
Adjusted SG&A Expenses (4)
Total selling, general and administrative expenses for the
period were RMB173.0 million,
representing a 25.9% decrease from RMB233.3 million,
accounting for 16.4% of total revenues as compared to 28.4% in
the same period of last fiscal year, primarily due to the
share-based compensation expense of RMB95.1
million incurred in the nine months ended May 31, 2016, partially offset by an increase in
the expenses of RMB16.6 million
incurred in connection with the Company's IPO during the first nine
months of 2017 and the compensation and benefits we paid to
additional general and administrative personnel to support our
growing business in the nine months ended May 31, 2017.
Adjusted SG&A expenses(4) for the period were
RMB173.0 million, representing a
25.1% increase from RMB138.2 million,
accounting for 16.4% of total revenues as compared to 16.8% in
the same period of last fiscal year, primarily due to expenses
incurred in connection with the Company's IPO and increase in staff
compensation expenses.
(4) Adjusted SG&A
Expenses are defined as selling, general and administrative
expenses excluding share-based compensation expenses.
|
Operating Income and Operating Margin
Operating income for the period was RMB231.5 million,
representing a 731.2% increase from RMB27.9 million in the
same period of last fiscal year. Operating margin for the period
was 22.0%, as compared to 3.4% in the same period of last fiscal
year.
Net Income and Adjusted Net Income
Net income attributed to the Company for the period
was RMB195.5 million as compared to RMB6.8
million in the same period of last fiscal year.
Adjusted net income attributed to the Company for the period
was RMB195.5 million, representing a 91.9% increase
from RMB101.8 million in the same period of last fiscal
year.
Earnings per ordinary share/ADS and Adjusted Earnings per
ordinary share/ADS
Basic and diluted net income per ordinary share/ADS attributable
to ordinary shareholders/ADS holders, on an as-converted basis, for
the period was RMB1.74
and RMB1.74, respectively, as compared to loss of RMB0.28 and RMB0.28, respectively, in the same period of last
fiscal year.
Adjusted basic and diluted net income per ordinary share/ADS
attributable to ordinary shareholders/ADS holders, on an
as-converted basis, for the period was RMB1.74 and RMB1.74, respectively, as compared to
RMB0.71 and RMB0.71, respectively, in the same period of last
fiscal year.
Adjusted EBITDA
Adjusted EBITDA for the period was RMB296.5 million, representing a 72.2% increase
from RMB172.2 million in the same
period of last fiscal year.
Cash and Working Capital
As of May 31, 2017, the Company's
cash and cash equivalents and restricted cash totaled RMB1,455.5 million, as compared to RMB644.1 million as of February 28, 2017.
Conference Call
The Company's management will host a conference call at
8:00 a.m. U.S. Eastern Time
(8:00 pm Beijing/Hong Kong Time) on July 27, 2017, to discuss its quarterly results
and recent business activities.
To participate in the conference call, please dial the following
number five to ten minutes prior to the scheduled conference call
time:
China:
|
4001-201-203
|
Hong Kong:
|
800-905945
|
United
States:
|
1888-346-8982
|
Canada Toll
Free
|
1855-669-9657
|
International:
|
1-412-902-4272
|
*Please ask to be
joined into Bright Scholar Education Holdings Limited's
call.
|
The Company will also broadcast a live audio webcast of the
conference call. The webcast will be available at
http://ir.brightscholar.com.
Following the earnings conference call, an archive of the call
will be available by dialing:
United
States:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Canada Toll
Free:
|
855-669-9658
|
Replay
Passcode:
|
10110364
|
Replay End
Date:
|
August 3,
2017
|
STATEMENT REGARDING UNAUDITED FINANCIAL INFORMATION
The unaudited financial information set forth above is subject
to adjustments that may be identified when audit work is performed
on the Company's year-end financial statements, which could result
in significant differences from this unaudited financial
information.
NON-GAAP FINANCIAL MEASURES
In evaluating our business, we consider and use certain non-GAAP
measures, including primarily adjusted EBITDA and adjusted net
income/(loss), as supplemental measures to review and assess our
operating performance. 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 U.S. GAAP. We define adjusted EBITDA as income from
operations (which excludes interest income, income tax benefit and
expense and depreciation and amortization expenses) excluding
share-based compensation expenses and adjusted net income/(loss) as
net income/(loss) excluding share-based compensation expenses. We
incurred share-based compensation in the 2016 fiscal year only,
which was associated with the acquisition of Mr. Junli He's equity interests in Impetus in
January 2016.
We present the non-GAAP financial measures because they are used
by our management to evaluate our operating performance and
formulate business plans. Such non-GAAP measures, including
adjusted EBITDA and adjusted net income/(loss), enable our
management to assess our operating results without considering the
impact of non-cash charges, including depreciation expenses and
share-based compensation expenses, and without considering the
impact of non-operating items such as interest income and income
tax benefit and expenses. We also believe that the use of the
non-GAAP measure facilitate investors' assessment of our operating
performance.
The non-GAAP financial measures are not defined under U.S. GAAP
and are not presented in accordance with U.S. GAAP. The non-GAAP
financial measures have limitations as analytical tools. One of the
key limitations of using these non-GAAP financial measures is that
they do not reflect all items of income and expense that affect our
operations. Interest income, income tax benefit and expenses,
depreciation expenses and share-based compensation expenses have
been and may continue to be incurred in our business and are not
reflected in the presentation of these non-GAAP measures, including
adjusted EBITDA or adjusted net income/(loss). Further, these
non-GAAP measures may differ from the non-GAAP information used by
other companies, including peer companies, and therefore their
comparability may be limited.
About Bright Scholar Education Holdings
Limited
Bright Scholar is the largest operator of international and
bilingual K-12 schools in China*.
The Company is dedicated to providing quality international
education to Chinese students and equipping them with the critical
academic foundation and skillsets necessary to succeed in the
pursuit of higher education overseas. It also complements its
international offerings with Chinese government-mandated curriculum
for students who wish to maintain the option of pursuing higher
education in China. As of
May 31, 2017, Bright Scholar operated
52 schools covering the breadth of K-12 academic needs of its
students across seven provinces in China. In the first nine months of the 2017
school year ended May 31, 2017,
Bright Scholar had an average of 29,613 students enrolled at its
schools.
* In terms of student
enrollment as of September 1, 2016, according to an industry report
commissioned by Bright Scholar and prepared by Frost & Sullivan
in 2017.
|
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements include,
without limitation, the Company's business plans and development,
can be identified by terminology such as "may," "will," "expect,"
"anticipate," "aim," "estimate," "intend," "plan," "believe,"
"potential," "continue," "is/are likely to" or other similar
expressions. Such statements are based upon management's current
expectations and current market and operating conditions, and
relate to events that involve known or unknown risks, uncertainties
and other factors, all of which are difficult to predict and many
of which are beyond the Company's control, which may cause the
Company's actual results, performance or achievements to differ
materially from those in the forward-looking statements. Further
information regarding these and other risks, uncertainties or
factors is included in the Company's filings with the U.S.
Securities and Exchange Commission. The Company does not undertake
any obligation to update any forward-looking statement as a result
of new information, future events or otherwise, except as required
under law.
IR Contact:
Bright Scholar Education Holdings Limited
Email:
IR@brightscholar.com
FleishmanHillard
Email:
BrightScholar.ir@fleishman.com
BRIGHT SCHOLAR
EDUCATION HOLDINGS LIMITED
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UNAUDITED CONDENSED
COMBINED AND CONSOLIDATED BALANCE SHEETS
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(Amounts in
thousands)
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As
of
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|
August
31,
|
|
May
31,
|
|
2016
|
|
2017
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
356,018
|
|
1,447,822
|
|
212,609
|
Restricted
cash
|
6,433
|
|
7,655
|
|
1,124
|
Held-to-maturity
investments
|
30,500
|
|
56,000
|
|
8,223
|
Accounts
receivable
|
2,066
|
|
183
|
|
27
|
Amounts due from
related parties
|
138,091
|
|
4,379
|
|
643
|
Other receivables,
deposits and other assets
|
29,348
|
|
28,863
|
|
4,238
|
Inventories
|
9,580
|
|
10,906
|
|
1,602
|
Total current
assets
|
572,036
|
|
1,555,808
|
|
228,466
|
Property and
equipment, net
|
431,377
|
|
416,989
|
|
61,234
|
Land use right,
net
|
35,667
|
|
34,938
|
|
5,131
|
Intangible
assets
|
23,830
|
|
21,807
|
|
3,202
|
Goodwill
|
102,332
|
|
104,035
|
|
15,277
|
Prepayment for
construction contract
|
2,421
|
|
3,060
|
|
449
|
Deferred tax assets,
net
|
26,942
|
|
21,040
|
|
3,090
|
Other non-current
assets
|
44,627
|
|
43,917
|
|
6,449
|
Total non-current
assets
|
667,196
|
|
645,786
|
|
94,832
|
TOTAL
ASSETS
|
1,239,232
|
|
2,201,594
|
|
323,298
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable
(including accounts payable of the consolidated VIESs without
recourse to Bright Scholar of RMB63,605 and RMB57,715 as of
August 31, 2016 and May 31,2017)
|
63,605
|
|
61,009
|
|
8,960
|
Amounts due to
related parties (including amounts due to related parties of the
consolidated VIESs without recourse to Bright Scholar of RMB64,988
and RMB96,418 as of August 31, 2016 and May 31,
2017)
|
66,855
|
|
98,500
|
|
14,464
|
Accrued expenses and
other current liabilities (including accrued expenses and other
current liabilities of the consolidated VIESs without recourse to
Bright Scholar of RMB200,092 and RMB207,796 as of August 31,
2016 and May 31, 2017)
|
201,019
|
|
229,832
|
|
33,750
|
Income tax payable
(including income tax payable of the consolidated VIESs without
recourse to Bright Scholar of RMB16,169 and RMB25,936 as of August
31, 2016 and May 31, 2017)
|
16,169
|
|
42,373
|
|
6,222
|
Current portion of
deferred revenue (including deferred revenue of the consolidated
VIESs without recourse to Bright Scholar of RMB644,201 and
RMB394,119 as of August 31, 2016 and May
31,2017)
|
664,201
|
|
394,119
|
|
57,875
|
Total current
liabilities
|
1,011,849
|
|
825,833
|
|
121,271
|
Deferred tax
liabilities, net (including deferred tax liabilities of the
consolidated VIESs without recourse to Bright Scholar of RMB5,924
and RMB5,452 as of August 31, 2016 and May
31,2017)
|
5,924
|
|
5,452
|
|
801
|
Deferred revenue
(including deferred revenue of the consolidated VIESs without
recourse to Bright Scholar of RMB1,202 and RMB1,051 as of
August 31, 2016 and May 31,2017)
|
1,202
|
|
1,051
|
|
154
|
Other non-current
liabilities (including non-current liabilities of the consolidated
VIESs without recourse to Bright Scholar of RMB58,696 and RMB59,242
as of August 31, 2016 and May 31,2017)
|
58,696
|
|
59,242
|
|
8,700
|
Total non-current
liabilities
|
65,822
|
|
65,745
|
|
9,655
|
TOTAL
LIABILITIES
|
1,077,671
|
|
891,578
|
|
130,926
|
EQUITY
|
|
|
|
|
|
Share
capital
|
7
|
|
7
|
|
1
|
Additional paid-in
capital
|
239,760
|
|
1,254,611
|
|
184,236
|
Statutory
reserves
|
47,813
|
|
64,948
|
|
9,537
|
Accumulated
deficit
|
(170,851)
|
|
(12,550)
|
|
(1,843)
|
Shareholders'
equity
|
116,729
|
|
1,307,016
|
|
191,931
|
Non-controlling
interests
|
44,832
|
|
3,000
|
|
441
|
Total
equity
|
161,561
|
|
1,310,016
|
|
192,372
|
TOTAL LIABILITIES
AND EQUITY
|
1,239,232
|
|
2,201,594
|
|
323,298
|
BRIGHT SCHOLAR
EDUCATION HOLDINGS LIMITED.
|
UNAUDITED CONDENSED
COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands, except for shares and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
May 31,
|
|
Nine Months Ended
May 31
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
317,399
|
|
406,739
|
|
59,728
|
|
821,148
|
|
1,052,909
|
|
154,617
|
Cost of
revenue
|
(196,142)
|
|
(222,988)
|
|
(32,745)
|
|
(563,450)
|
|
(653,166)
|
|
(95,916)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
121,257
|
|
183,751
|
|
26,983
|
|
257,698
|
|
399,743
|
|
58,701
|
Selling, general and
administrative expenses
|
(49,272)
|
|
(65,245)
|
|
(9,581)
|
|
(233,347)
|
|
(172,993)
|
|
(25,404)
|
Other operating
income
|
1,179
|
|
3,336
|
|
490
|
|
3,503
|
|
4,763
|
|
699
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
73,164
|
|
121,842
|
|
17,892
|
|
27,854
|
|
231,513
|
|
33,996
|
Interest income,
net
|
115
|
|
262
|
|
38
|
|
1,419
|
|
1,380
|
|
203
|
Investment
income
|
399
|
|
4,101
|
|
602
|
|
399
|
|
7,338
|
|
1,078
|
Other
expense
|
(72)
|
|
(38)
|
|
(5)
|
|
(149)
|
|
(535)
|
|
(78)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
73,606
|
|
126,167
|
|
18,527
|
|
29,523
|
|
239,696
|
|
35,199
|
Income tax
expense
|
(15,706)
|
|
(18,671)
|
|
(2,742)
|
|
(22,747)
|
|
(44,229)
|
|
(6,495)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
57,900
|
|
107,496
|
|
15,785
|
|
6,776
|
|
195,467
|
|
28,704
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to non-controlling interests
|
15,922
|
|
-
|
|
-
|
|
33,531
|
|
20,034
|
|
2,942
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
incomeattributable to ordinary shareholders/ADS
holders
|
41,978
|
|
107,496
|
|
15,785
|
|
(26,755)
|
|
175,433
|
|
25,762
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
ordinary shareholders/ADS
holders (expressed in RMB per share)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
0.42
|
|
1.05
|
|
0.15
|
|
-0.28
|
|
1.74
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in
|
|
|
|
|
|
|
|
|
|
|
|
calculating net loss per ordinary share/ADS:
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
100,000,000
|
|
102,119,565
|
|
102,119,565
|
|
95,970,474
|
|
100,714,286
|
|
100,714,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRIGHT SCHOLAR
EDUCATION HOLDINGS LIMITED
|
UNAUDITED CONDENSED
COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
May 31,
|
|
Nine Months Ended
May 31
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Net cash (used in)
from operating activities
|
(144,777)
|
|
(108,230)
|
|
(15,891)
|
|
(50,063)
|
|
82,827
|
|
12,163
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in)
from investing activities
|
75,472
|
|
(83,613)
|
|
(12,278)
|
|
(55,537)
|
|
(31,390)
|
|
(4,609)
|
Net cash (used in)
provided by financing activities
|
(4,663)
|
|
1,003,235
|
|
147,320
|
|
3,754
|
|
1,041,589
|
|
152,954
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents,
|
|
|
|
|
|
|
|
|
|
|
|
and restricted
cash
|
(73,968)
|
|
811,392
|
|
119,151
|
|
(101,846)
|
|
1,093,026
|
|
160,508
|
Cash and cash
equivalents, and restricted cash
|
|
|
|
|
|
|
|
|
|
|
|
at beginning of the
year
|
216,370
|
|
644,085
|
|
94,582
|
|
244,248
|
|
362,451
|
|
53,225
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, and restricted cash at end of the year
|
142,402
|
|
1,455,477
|
|
213,733
|
|
142,402
|
|
1,455,477
|
|
213,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of
GAAP and Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
May 31,
|
|
Nine Months Ended
May 31
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
57,900
|
|
107,496
|
|
15,785
|
|
6,776
|
|
195,467
|
|
28,704
|
Add:
Share-based compensation expense
|
-
|
|
-
|
|
-
|
|
95,070
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
57,900
|
|
107,496
|
|
15,785
|
|
101,846
|
|
195,467
|
|
28,704
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
57,900
|
|
107,496
|
|
15,785
|
|
6,776
|
|
195,467
|
|
28,704
|
Less:
interest income, net
|
(115)
|
|
(262)
|
|
(38)
|
|
(1,419)
|
|
(1,380)
|
|
(203)
|
Add:
income tax expense
|
15,706
|
|
18,671
|
|
2,831
|
|
22,747
|
|
44,229
|
|
6,495
|
Add:
depreciation and amortization expense
|
17,630
|
|
19,281
|
|
2,742
|
|
49,004
|
|
58,217
|
|
8,549
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
91,121
|
|
145,186
|
|
21,320
|
|
77,108
|
|
296,533
|
|
43,545
|
Add:
Share-based compensation expense
|
-
|
|
-
|
|
-
|
|
95,070
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
91,121
|
|
145,186
|
|
21,320
|
|
172,178
|
|
296,533
|
|
43,545
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative expenses
|
49,272
|
|
65,245
|
|
9,581
|
|
233,347
|
|
172,993
|
|
25,404
|
Less: Share-based compensation expense
|
-
|
|
-
|
|
-
|
|
(95,070)
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted selling,
general and administrative expenses
|
49,272
|
|
65,245
|
|
9,581
|
|
138,277
|
|
172,993
|
|
25,404
|
Weighted average
shares/ADSs used
|
|
|
|
|
|
|
|
|
|
|
|
in calculating earnings per
share/ADSs:
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
100,000,000
|
|
102,119,565
|
|
102,119,565
|
|
95,970,474
|
|
100,714,286
|
|
100,714,286
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to Bright Scholar's ordinary shareholders/ADS
holders
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
0.42
|
|
1.05
|
|
0.16
|
|
0.71
|
|
1.74
|
|
0.26
|
View original
content:http://www.prnewswire.com/news-releases/bright-scholar-announces-unaudited-financial-results-for-third-fiscal-quarter-ended-may-31-2017-300494633.html
SOURCE Bright Scholar Education Holdings Ltd.