FOSHAN, China, Nov. 8, 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 fourth
fiscal quarter and fiscal year ended August
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.
|
Fourth Fiscal Quarter Ended August 31,
2017 Financial Highlights (in comparison to the same
period of last fiscal year)
- Revenue was RMB275.5 million, up
25.7%
- Gross profit was RMB68.3 million,
up 47.2%; gross margin was 24.8%, up from 21.2%
- Operating loss was RMB16.6
million, up 74.7%; operating margin was (6.0%), down from
(4.3%)
- Net loss was RMB3.7 million, down
5.1%; adjusted net loss(1) was at RMB3.7 million, down 5.1%; net margin was (1.3%),
up from (1.8%); adjusted net margin(1) was (1.3%), up
from (1.8%)
- EPS was RMB(0.03), up from
RMB(0.09); adjusted EPS(2)
was RMB(0.03), up from RMB(0.09)
- Adjusted EBITDA(3) was RMB9.4
million, down 30.9%; adjusted EBITDA margin(3)
was 3.4%, down from 6.2%
Fiscal Year Ended August 31,
2017 Financial Highlights (in comparison to last fiscal
year)
- Revenue was RMB1,328.4 million,
up 27.7%
- Gross profit was RMB468.0
million, up 53.9%; gross margin was 35.2%, up from
29.2%
- Operating income was RMB214.9
million, up 1,074.3% compared to RMB18.3 million of last fiscal year, operating
margin was 16.2%, up from 1.8%
- Net income was RMB191.8 million,
up from RMB2.9 million; adjusted net
income(1) was RMB191.8
million, up 95.7%; net margin was 14.4%, up from 0.3%;
adjusted net margin(1) was 14.4%, up from 9.4%
- EPS was RMB1.64, up 531.6%;
adjusted EPS(2) was RMB1.64, up 168.9%
- Adjusted EBITDA(3) was RMB305.9 million, up 64.6%; adjusted EBITDA
margin(3) was 23.0%, up from 17.9%
____________
(1) Adjusted net
income/(loss) is defined as net income/(loss) excluding share-based
compensation expenses. Adjusted net margin is defined as adjusted
net income/(loss) divided by revenue.
(2) Adjusted EPS is
defined as adjusted net income/(loss) 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.
|
"The fourth quarter of fiscal 2017 capped off an exceptional
2017 fiscal year for Bright Scholar with robust operating and
financial results. We believe our record revenue and earnings
performance in fiscal 2017 evidenced the strength of our focused
business strategies, our continued efforts to enhance market
leadership and our strong execution, which have laid solid
foundation for our continued growth into fiscal 2018,"
said Mr. Jerry He, CEO of Bright Scholar. "As the
largest operator of international and bilingual K-12 schools in
China*, Bright Scholar had 30,474
students as of August 31, 2017,
representing enrollment growth of 16% over fiscal 2016. We
provide our students with premier educational services that have
resulted in outstanding academic outcomes with 87% of students in
the 2017 graduating class of our international schools having
received offers from global top 50 institutions such as
University of Chicago, Cambridge and Oxford, of which over 20
institutions are based in the United States. During fiscal
2017, our students also obtained over 600 competition awards in
various subjects such as math, English, writing, piano and
swimming, among which 119 are international awards and 283 are
national level awards."
"We continued to expand our portfolio of schools and increased
our network from 49 to 52 schools in fiscal 2017 and we currently
expect to open 12 new schools by fiscal 2018. As we build and scale
new business, partnerships and ecosystems play a pivotal role. Out
of the new schools we expect to open in fiscal 2018, eight schools
will be in alliance with Country Garden and four in collaboration
with other third-party business partners. We also advanced our
global partnerships with Columbia
and Berkeley, top U.S.-based
universities on scholarships, and Fettes, a renowned UK school, to
operate international school in China and pursued an equity partnership with
Can-achieve to supplement our core K-12 businesses. Going into
fiscal 2018, we will continue to pursue domestic and international
acquisitive growth opportunities to further expand our network as
well as broaden and deepen our complementary education service
offerings, especially in areas of test preparation, college
counselling and extra curriculum activities. "
"Our business and operational performance underpinned the strong
growth trajectory across all core financial metrics for fiscal
2017, with an increase in revenue by 27.7% and in adjusted net
income by 95.7%, and margins expanding significantly as supported
by improved utilization rate, student/teacher ratio and disciplined
cost management across all our schools."
Mr. He concluded, "As we strengthen our market leading position,
we believe we are well positioned to continue executing our
strategy to build a sustainable long-term business with a strong
conviction to deliver world-class education to students in
China and globally. We are proud
of the phenomenal progress we have achieved this year and look
forward to continuing our diligent approach to support the success
of our students, teachers and employees as well as continuing to
drive long-term value for our shareholders in the coming
years."
____________
* 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.
|
FOURTH FISCAL QUARTER ENDED AUGUST 31, 2017 UNAUDITED FINANCIAL
RESULTS
Revenues
Revenues for the fourth fiscal quarter were RMB275.5 million, representing 25.7% increase
from RMB219.2 million in the same
period of last fiscal year.
The table below sets forth a breakdown of revenues:
|
Fourth Fiscal
Quarter
Ended August 31, 2017
|
Fourth Fiscal
Quarter
Ended August 31,
2016
|
YoY %
Change
|
|
(RMB in
million)
|
(RMB in
million)
|
|
International
Schools
|
95.5
|
81.7
|
16.9%
|
Bilingual
Schools
|
83.1
|
68.7
|
21.0%
|
Kindergartens
|
66.4
|
53.3
|
24.6%
|
Complementary
|
30.5
|
15.5
|
96.8%
|
Total
|
275.5
|
219.2
|
25.7%
|
International Schools: Revenue for the quarter was
RMB95.5 million, representing a 16.9%
increase from RMB81.7 million,
accounting for 34.7% of total revenues as compared to 37.3% in the
same period of last fiscal year, primarily due to a 14.0% increase
in the average number of students from 5,430 to 6,191, and a 2.6%
increase in the average tuition and fees from RMB15,047 to RMB15,432 during the comparison periods.
Bilingual Schools: Revenue for the quarter was
RMB83.1 million, representing a 21.0%
increase from RMB68.7 million,
accounting for 30.2% of total revenues as compared to 31.3% in the
same period of last fiscal year, primarily due to a 15.3% increase
in the average number of students from 11,489 to 13,246, and a 5.0%
increase in the average tuition and fees from RMB5,976 to RMB6,276 during the comparison periods.
Kindergartens: Revenue for the quarter was RMB66.4 million, representing a 24.6% increase
from RMB53.3 million, accounting for
24.1% of total revenues as compared to 24.3% in the same period of
last fiscal year, primarily due to a 15.3% increase in the average
number of students from 9,324 to 10,748, and a 8.0% increase in the
average tuition and fees from RMB5,721 to RMB6,176 during the comparison periods.
Complementary: Revenue for the quarter was RMB30.5 million, representing a 96.8% increase
from RMB15.5 million, accounting for
11.1% of total revenues as compared to 7.1% in the same period of
last fiscal year, primarily due to an increase in the revenue of
élan English learning centers from RMB11.4
million to RM 16.0 million,
and an increase of RMB4.5 million in
other categories of revenue (e.g., camps) during the comparison
periods.
Cost of Revenues
Cost of revenues for the quarter was RMB207.2million, representing a 19.9% increase
from RMB172.8 million in the same
period of last fiscal year, primarily due to an increase of
RMB20.7 million in staff costs as a
consequence of an increase in the headcount of teaching staff in
line with the expansion of our school network. The average number
of our teachers and instructors increased by 16.2% from 2,879 to
3,345 during the comparison periods.
International Schools: Cost of revenues for the quarter
was RMB92.3 million, representing a
19.9% increase from RMB77.0 million
in the same period of last fiscal year.
Bilingual Schools: Cost of revenues for the quarter was
RMB56.3 million, representing a 27.1%
increase from RMB44.3 million in the
same period of last fiscal year.
Kindergartens: Cost of revenues for the quarter was
RMB41.7 million, representing a 7.5%
increase from RMB38.8 million in the
same period of last fiscal year.
Complementary: Cost of revenues for the quarter was
RMB16.9 million, representing a 33.1%
increase from RMB12.7 million in the
same period of last fiscal year.
Gross Profit and Gross Margin
Gross profit for the quarter was RMB68.3
million, representing a 47.2% increase from RMB46.4 million in the same period of last fiscal
year. Gross margin for the quarter was 24.8%, as compared to 21.2%
in the same period of last fiscal year, primarily due to the scale
growth of our existing schools, increased average tuitions and
fees, and improved operational efficiency.
International Schools: Gross profit for the quarter was
RMB3.2 million, representing a 31.9%
decrease from RMB4.7 million in the
same period of last fiscal year. Gross margin for the quarter was
3.4%, as compared to 5.8% in the same period of last fiscal
year.
Bilingual Schools: Gross profit for the quarter was
RMB26.8 million, representing a 9.8%
increase from RMB24.4 million in the
same period of last fiscal year. Gross margin for the quarter was
32.3%, as compared to 35.5% in the same period of last fiscal
year.
Kindergartens: Gross profit for the quarter was
RMB24.7 million, representing a 70.3%
increase from RMB14.5 million in the
same period of last fiscal year. Gross margin for the quarter was
37.2%, as compared to 27.2% in the same period of last fiscal
year.
Complementary: Gross profit for the quarter was
RMB13.5 million, representing a
382.1% increase from RMB2.8 million
in the same period of last fiscal year. Gross margin for the
quarter was 44.3%, as compared to 18.1% 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 RMB89.0 million,
representing a 56.7% increase from RMB56.8
million in the same period of last fiscal year, accounting
for 32.3% of total revenues as compared to 25.9% in the same period
of last fiscal year. The increase in selling, general and
administrative expenses was primarily due to the increase in the
compensations and benefits paid to additional general and
administrative staff members, and the increase in marketing fees
for brand promotion and fees for professional services, both of
which were in line with our growing business.
Adjusted SG&A expenses(4) for the quarter were
RMB89.0 million, representing a 56.7%
increase from RMB56.8 million in the
same period of last fiscal year, accounting for 32.3% of total
revenues as compared to 25.9% 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 Loss and Operating Margin
Operating loss for the quarter was at RMB16.6 million, representing a 74.7% increase
from RMB9.5 million loss in the same
period of last fiscal year. Operating margin for the quarter was
(6.0%), as compared to (4.3%) in the same period of last fiscal
year.
Net Loss and Adjusted Net
Loss
Net loss for the quarter was at RMB3.7
million, representing a 5.1% decrease from RMB3.9 million loss in the same period of the
last fiscal year.
Adjusted net loss for the quarter was at RMB3.7 million, representing a 5.1% decrease from
RMB3.9 million loss in the same
period of last fiscal year.
Earnings per ordinary share/ADS and Adjusted Earnings per
ordinary share/ADS
Basic and diluted net loss per ordinary share/ADS attributable
to ordinary shareholders/ADS holders, on an as-converted basis, for
the quarter was RMB0.03 and
RMB0.03, respectively, as compared to
loss of RMB0.09 and RMB0.09, respectively, in the same period of last
fiscal year.
Adjusted basic and diluted net loss per ordinary share/ADS
attributable to ordinary shareholders/ADS holders, on an
as-converted basis, for the quarter was RMB0.03 and RMB0.03, respectively, as compared to loss of
RMB0.09 and RMB0.09, respectively, in the same period of last
fiscal year.
Adjusted EBITDA
Adjusted EBITDA for the quarter was RMB9.4 million, representing a 30.9% decrease
from RMB13.6 million in the same
period of last fiscal year.
FISCAL YEAR ENDED AUGUST 31,
2017 UNAUDITED FINANCIAL RESULTS
Revenues
Revenues for the fiscal year 2017 were RMB1,328.4 million, representing 27.7% increase
from RMB1,040.3 million in last
fiscal year.
The table below sets forth a breakdown of revenues:
|
Fiscal Year
2017 Ended August 31,
2017
|
Fiscal Year
2016
Ended August 31,
2016
|
YoY %
Change
|
|
(RMB in
million)
|
(RMB in
million)
|
|
International
Schools
|
505.7
|
423.1
|
19.5%
|
Bilingual
Schools
|
413.4
|
328.7
|
25.8%
|
Kindergartens
|
312.0
|
252.0
|
23.8%
|
Complementary
|
97.3
|
36.5
|
166.6%
|
Total
|
1,328.4
|
1,040.3
|
27.7%
|
International Schools: Revenue for the year was
RMB505.7 million, representing a
19.5% increase from RMB423.1 million,
accounting for 38.1% of total revenues as compared to 40.7% in last
fiscal year, primarily due to a 15.4% increase in the average
number of students from 5,443 to 6,283, and a 3.5% increase in the
average tuition and fees from RMB77,744 to RMB80,478 during the comparison years.
Bilingual Schools: Revenue for the year was RMB413.4 million, representing a 25.8% increase
from RMB328.7 million, accounting for
31.1% of total revenues as compared to 31.6% in last fiscal year,
primarily due to a 15.3% increase in the average number of students
from 11,441 to 13,189, and a 9.1% increase in the average tuition
and fees from RMB28,729 to
RMB31,346 during the comparison
years.
Kindergartens: Revenue for the year was RMB312.0 million, representing a 23.8% increase
from RMB252.0 million, accounting for
23.5% of total revenues as compared to 24.2% in last fiscal year,
primarily due to a 14.4% increase in the average number of students
from 8,979 to 10,276, and a 8.2% increase in the average tuition
and fees from RMB28,067 to
RMB30,364 during the comparison
years.
Complementary: Revenue for the year was RMB97.3 million, representing a 166.6% increase
from RMB36.5 million, accounting for
7.3% of total revenues as compared to 3.5% in last fiscal year,
primarily due to an increase in the revenue of élan English
learning centers from RMB25.6 million
to RMB71.3 million during the
comparison years.
Cost of Revenues
Cost of revenues for the year was RMB860.3 million, representing 16.9% increase
from RMB736.2 million in last fiscal
year, primarily due to an increase of RMB95.2 million in staff costs as a consequence
of an increase in the headcount of teaching staff in line with the
expansion of our school network. The average number of our teachers
and instructors increased by 11.3% from 2,857 to 3,180 during the
comparison years.
International Schools: Cost of revenues for the year was
RMB360.0 million, representing a
15.2% increase from RMB312.5 million
in last fiscal year.
Bilingual Schools: Cost of revenues for the year was
RMB262.3 million, representing a
14.6% increase from RMB228.9 million
in last fiscal year.
Kindergartens: Cost of revenues for the year was
RMB178.8 million, representing a 6.3%
increase from RMB168.2 million in
last fiscal year.
Complementary: Cost of revenues for the year was
RMB59.2 million, representing a
122.6% increase from RMB26.6 million
in last fiscal year.
Gross Profit and Gross Margin
Gross profit for the year was RMB468.0
million, representing a 53.9% increase from RMB304.1 million in last fiscal year. Gross
margin for the year was 35.2%, as compared to 29.2% in last fiscal
year, primarily due to the scale growth of our existing schools,
increased average tuitions and fees, and improved operational
efficiency.
International Schools: Gross profit for the year was
RMB145.6 million, representing a
31.6% increase from RMB110.6 million
in last fiscal year. Gross margin for the year was 28.8%, as
compared to 26.1% in last fiscal year.
Bilingual Schools: Gross profit for the year was
RMB151.1 million, representing a
51.4% increase from RMB99.8 million
in last fiscal year. Gross margin for the year was 36.6%, as
compared to 30.4% in last fiscal year.
Kindergartens: Gross profit for the year was RMB133.2 million, representing a 58.9% increase
from RMB83.8 million in last fiscal
year. Gross margin for the year was 42.7%, as compared to 33.3% in
last fiscal year.
Complementary: Gross profit for the year was RMB38.1 million, representing a 284.8% increase
from RMB9.9 million in last fiscal
year. Gross margin for the year was 39.2%, as compared to 27.1% in
last fiscal year.
Selling, General and Administrative Expenses and
Adjusted SG&A Expenses (4)
Total selling, general and administrative expenses for the year
were RMB262.0 million, representing a
9.7% decrease from RMB290.1 million,
accounting for 19.7% of total revenues as compared to 27.9% in last
fiscal year, primarily due to the share-based compensation expense
of RMB95.1 million incurred in last
fiscal year, partially offset by the listing expenses incurred in
connection with the Company's IPO and the compensations and
benefits we paid to additional general and administrative staff
members to support our growing business in the fiscal year
2017.
Adjusted SG&A Expenses(4) for the year were
RMB262.0 million, representing a
34.4% increase from RMB195.0 million,
accounting for 19.7% of total revenues as compared to 18.7% in 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 year was RMB214.9 million, representing a 1,074.3%
increase from RMB18.3 million in last
fiscal year. Operating margin for the year was 16.2%, as compared
to 1.8% in last fiscal year.
Net Income and Adjusted Net Income
Net income for the year was RMB191.8
million as compared to net loss of RMB2.9 million in last fiscal year.
Adjusted net income for the year was RMB191.8 million, representing a 95.7% increase
from RMB98.0million in 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 year was RMB1.64 and RMB1.64, respectively, as compared to loss of
RMB0.38 and RMB0.38, respectively, in 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 year was RMB1.64 and RMB1.64, respectively, as compared to
RMB0.61 and RMB0.61, respectively, in last fiscal year.
Adjusted EBITDA
Adjusted EBITDA for the year was RMB305.9
million, representing a 64.6% increase from RMB185.8 million in last fiscal year.
Cash and Working Capital
As of August 31, 2017, the
Company's cash and cash equivalents and restricted cash totaled
RMB1,896.7 million, as compared to
RMB1,455.5 million as of May 31, 2017.
GUIDANCE FOR FISCAL YEAR ENDING AUGUST 31, 2018
For the fiscal year 2018, the Company currently expects its
average students enrollment to be between approximately 34,300 and
35,000, representing a year-over-year increase between 15% and 18%,
and its revenue to be between approximately RMB1,630 million and RMB1,660 million,
representing a year-over-year organic growth between 23% and 25%.
The Company also currently expects 12 new schools openings for
fiscal year 2018.
This guidance is based on the current market and operating
conditions and reflects the Company's current and preliminary
estimates of such market and operating conditions and customer
demand, which are all subject to change.
Conference Call
The Company's management will host a conference call at
8:00 a.m. U.S. Eastern Time
(9:00 pm Beijing/Hong Kong Time) on November 9, 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:
|
1-888-346-8982
|
Canada Toll
Free
|
1-855-669-9657
|
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:
|
10113325
|
Replay End
Date:
|
November 16,
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
define adjusted SG&A as expense excluding share-based
compensation expenses. We incurred share-based compensation in the
2016 fiscal year only, which was associated with the acquisition of
Mr. Jerry 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
August 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 fiscal year of the 2017 school
year ended August 31, 2017, Bright
Scholar had an average of 29,747 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:
FleishmanHillard
Email:
BrightScholar.ir@fleishman.com
|
BRIGHT SCHOLAR
EDUCATION HOLDINGS LIMITED UNAUDITED CONDENSED COMBINED AND CONSOLIDATED BALANCE
SHEETS (Amounts in
thousands)
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As
of
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August
31,
|
|
August
31,
|
|
|
2016
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
356,018
|
|
1,883,000
|
|
285,788
|
Restricted
cash
|
|
6,433
|
|
13,662
|
|
2,074
|
Held-to-maturity
investments
|
|
30,500
|
|
6,390
|
|
970
|
Accounts
receivable
|
|
2,066
|
|
20
|
|
3
|
Amounts due from
related
parties
|
|
138,091
|
|
7,940
|
|
1,205
|
Other receivables,
deposits and other
assets
|
|
29,348
|
|
30,535
|
|
4,634
|
Inventories
|
|
9,580
|
|
8,598
|
|
1,305
|
Total current
assets
|
|
572,036
|
|
1,950,145
|
|
295,979
|
Property and
equipment,
net
|
|
431,377
|
|
423,344
|
|
64,252
|
Land use right,
net
|
|
35,667
|
|
34,694
|
|
5,266
|
Intangible
assets
|
|
23,830
|
|
21,177
|
|
3,214
|
Goodwill
|
|
102,332
|
|
104,035
|
|
15,790
|
Prepayment for
construction contract
|
|
2,421
|
|
5,490
|
|
833
|
Deferred tax assets,
net
|
|
26,942
|
|
25,337
|
|
3,845
|
Deposits for
acquisition
|
|
-
|
|
78,750
|
|
11,952
|
Other non-current
assets
|
|
44,627
|
|
43,660
|
|
6,626
|
Total non-current
assets
|
|
667,196
|
|
736,487
|
|
111,778
|
TOTAL
ASSETS
|
|
1,239,232
|
|
2,686,632
|
|
407,757
|
|
|
|
|
|
|
|
BRIGHT SCHOLAR
EDUCATION HOLDINGS LIMITED UNAUDITED CONDENSED COMBINED AND CONSOLIDATED BALANCE
SHEETS-CONTINUED (Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
August
31,
|
|
August
31,
|
|
|
2016
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts payable
(including accounts payable of the consolidated VIEs
without recourse to Bright Scholar Education of
RMB63,605 and RMB50,899 as
of August 31, 2016 and August
31,2017)
|
|
63,605
|
|
50,899
|
|
7,725
|
Amounts due to related
parties (including amounts due to related parties of
the
consolidated
VIEs without recourse to Bright Scholar Education of RMB64,988
and
RMB62,138 as of August 31, 2016 and August
31,
2017)
|
|
66,855
|
|
76,433
|
|
11,600
|
Accrued expenses and
other current liabilities (including accrued expenses and other
current liabilities of the consolidated VIEs
without recourse to Bright Scholar
Education of RMB200,092 and RMB255,859 as of
August 31, 2016 and August 31,
2017)
|
|
201,019
|
|
272,479
|
|
41,355
|
Income tax payable
(including income tax payable of the consolidated VIEs without
recourse to Bright Scholar Education of
RMB16,169 and RMB13,958 as of August
31, 2016 and August 31, 2017)
|
|
16,169
|
|
40,387
|
|
6,130
|
Current portion of
deferred revenue (including deferred revenue of the
consolidated
VIEs without recourse to Bright Scholar
Education of RMB644,201 and
RMB761,876 as of August 31, 2016 and August
31,2017)
|
|
664,201
|
|
761,876
|
|
115,632
|
Total current
liabilities
|
|
1,011,849
|
|
1,202,074
|
|
182,442
|
Deferred tax
liabilities, net (including deferred tax liabilities of the
consolidated VIEs
without recourse to Bright Scholar Education of
RMB5,924 and RMB5,294 as of
August 31, 2016 and August
31,2017)
|
|
5,924
|
|
5,294
|
|
803
|
Deferred revenue
(including deferred revenue of the consolidated VIEs without
recourse to Bright Scholar Education of RMB1,202
and RMB nil as of August 31,
2016 and August 31,2017)
|
|
1,202
|
|
-
|
|
-
|
Other non-current
liabilities (including non-current liabilities of the consolidated
VIEs
without recourse to Bright Scholar Education of
RMB58,696 and RMB59,806 as of
August 31, 2016 and August 31,2017)
|
|
58,696
|
|
59,806
|
|
9,077
|
Total non-current
liabilities
|
|
65,822
|
|
65,100
|
|
9,880
|
TOTAL
LIABILITIES
|
|
1,077,671
|
|
1,267,174
|
|
192,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Share
capital
|
|
7
|
|
7
|
|
1
|
Additional paid-in
capital
|
|
239,760
|
|
1,403,605
|
|
213,029
|
Statutory
reserves
|
|
47,813
|
|
64,948
|
|
9,857
|
Accumulated other
comprehensive
income
|
|
-
|
|
(36,494)
|
|
(5,539)
|
Accumulated
deficit
|
|
(170,851)
|
|
(15,933)
|
|
(2,418)
|
Shareholders'
equity
|
|
116,729
|
|
1,416,133
|
|
214,930
|
Non-controlling
interests
|
|
44,832
|
|
3,325
|
|
505
|
Total
equity
|
|
161,561
|
|
1,419,458
|
|
215,435
|
TOTAL LIABILITIES
AND EQUITY
|
|
1,239,232
|
|
2,686,632
|
|
407,757
|
|
|
|
|
|
|
|
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
August 31,
|
|
Twelve Months
Ended August 31
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
219,181
|
|
275,458
|
|
41,807
|
|
1,040,329
|
|
1,328,367
|
|
201,610
|
Cost of
revenue
|
(172,756)
|
|
(207,164)
|
|
(31,442)
|
|
(736,205)
|
|
(860,330)
|
|
(130,575)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
46,425
|
|
68,294
|
|
10,365
|
|
304,124
|
|
468,037
|
|
71,035
|
Selling, general and
administrative expenses
|
(56,751)
|
|
(88,979)
|
|
(13,505)
|
|
(290,098)
|
|
(261,972)
|
|
(39,760)
|
Other operating
income
|
781
|
|
4,111
|
|
624
|
|
4,283
|
|
8,874
|
|
1,347
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss)/income
|
(9,545)
|
|
(16,574)
|
|
(2,516)
|
|
18,309
|
|
214,939
|
|
32,622
|
Interest income,
net
|
729
|
|
3,521
|
|
534
|
|
2,148
|
|
4,901
|
|
744
|
Investment
income
|
406
|
|
6,380
|
|
968
|
|
805
|
|
13,718
|
|
2,082
|
Other
expenses
|
(308)
|
|
(244)
|
|
(37)
|
|
(457)
|
|
(779)
|
|
(118)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income before
income taxes
|
(8,718)
|
|
(6,917)
|
|
(1,051)
|
|
20,805
|
|
232,779
|
|
35,330
|
Income tax
benefits/(expenses)
|
4,858
|
|
3,259
|
|
495
|
|
(17,889)
|
|
(40,970)
|
|
(6,218)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
(3,860)
|
|
(3,658)
|
|
(556)
|
|
2,916
|
|
191,809
|
|
29,112
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to non-controlling interests
|
5,353
|
|
(275)
|
|
(42)
|
|
39,290
|
|
19,759
|
|
2,999
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/incomeattributable to ordinary shareholders
|
(9,213)
|
|
(3,383)
|
|
(514)
|
|
(36,374)
|
|
172,050
|
|
26,113
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/earnings per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
ordinary shareholders (expressed in RMB per share)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
(0.09)
|
|
(0.03)
|
|
0.00
|
|
(0.38)
|
|
1.64
|
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in
|
|
|
|
|
|
|
|
|
|
|
|
calculating net loss per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
100,000,000
|
|
117,078,804
|
|
117,078,804
|
|
96,983,360
|
|
104,839,041
|
|
104,839,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRIGHT SCHOLAR
EDUCATION HOLDINGS LIMITED
|
UNAUDITED CONDENSED
COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
August 31
|
|
Twelve Months
Ended August 31
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Net cash generated
from operating activities
|
359,007
|
|
400,161
|
|
60,734
|
|
360,658
|
|
482,988
|
|
73,305
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used
in)/generated from investing activities
|
(147,599)
|
|
(45,630)
|
|
(6,927)
|
|
32,086
|
|
(77,020)
|
|
(11,688)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash generated
from/(used in) financing activities
|
8,641
|
|
123,148
|
|
18,692
|
|
(274,541)
|
|
1,164,737
|
|
176,774
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
-
|
|
(36,494)
|
|
(5,539)
|
|
-
|
|
(36,494)
|
|
(5,539)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents,
|
|
|
|
|
|
|
|
|
|
|
|
and
restricted cash
|
220,049
|
|
441,185
|
|
66,960
|
|
118,203
|
|
1,534,211
|
|
232,852
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, and restricted cash
|
|
|
|
|
|
|
|
|
|
|
|
at
beginning of the period
|
142,402
|
|
1,455,477
|
|
220,902
|
|
244,248
|
|
362,451
|
|
55,010
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, and restricted cash
|
|
|
|
|
|
|
|
|
|
|
|
at end
of the period
|
362,451
|
|
1,896,662
|
|
287,862
|
|
362,451
|
|
1,896,662
|
|
287,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of
GAAP and Non-GAAP Results
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
August 31,
|
|
Twelve Months
Ended August 31
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
(3,860)
|
|
(3,658)
|
|
(556)
|
|
2,916
|
|
191,809
|
|
29,112
|
Add:
Share-based compensation expense
|
-
|
|
-
|
|
-
|
|
95,070
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
(loss)/income
|
(3,860)
|
|
(3,658)
|
|
(556)
|
|
97,986
|
|
191,809
|
|
29,112
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
(3,860)
|
|
(3,658)
|
|
(556)
|
|
2,916
|
|
191,809
|
|
29,112
|
Less:
interest income, net
|
729
|
|
3,521
|
|
534
|
|
2,148
|
|
4,901
|
|
744
|
Add:
income tax (benefits)/expenses
|
(4,858)
|
|
(3,259)
|
|
(495)
|
|
17,889
|
|
40,970
|
|
6,218
|
Add:
depreciation and amortization expenses
|
23,090
|
|
19,839
|
|
3,012
|
|
72,094
|
|
78,056
|
|
11,846
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
13,643
|
|
9,401
|
|
1,427
|
|
90,751
|
|
305,934
|
|
46,432
|
Add:
Share-based compensation expense
|
-
|
|
-
|
|
-
|
|
95,070
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
13,643
|
|
9,401
|
|
1,427
|
|
185,821
|
|
305,934
|
|
46,432
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative expenses
|
56,751
|
|
88,979
|
|
13,505
|
|
290,098
|
|
261,972
|
|
39,760
|
Less: Share-based compensation expense
|
-
|
|
-
|
|
-
|
|
95,070
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted selling,
general and administrative expenses
|
56,751
|
|
88,979
|
|
13,505
|
|
195,028
|
|
261,972
|
|
39,760
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used
|
|
|
|
|
|
|
|
|
|
|
|
in
calculating earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
100,000,000
|
|
117,078,804
|
|
117,078,804
|
|
96,983,360
|
|
104,839,041
|
|
104,839,041
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
(loss)/income attributable
|
|
|
|
|
|
|
|
|
|
|
|
to
Bright Scholar's shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
(0.09)
|
|
(0.03)
|
|
0.00
|
|
0.61
|
|
1.64
|
|
0.25
|
View original
content:http://www.prnewswire.com/news-releases/bright-scholar-announces-unaudited-financial-results-for-fourth-fiscal-quarter-and-fiscal-year-ended-august-31-2017-300551999.html
SOURCE Bright Scholar Education Holdings Ltd.