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Bright Scholar Announces Unaudited Financial Results for the Third Quarter of Fiscal 2024

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Bright Scholar Education Holdings (NYSE: BEDU) reported its unaudited financial results for Q3 fiscal 2024. Key highlights include:

- Revenue of RMB554.0 million, up 6.2% quarter-over-quarter
- Gross profit increased 5.0% year-over-year to RMB202.7 million
- Gross margin improved to 36.6% from 32.9% in Q3 fiscal 2023
- Overseas Schools revenue grew 19.4% year-over-year to RMB264.9 million
- Net loss of RMB90.3 million, impacted by RMB133 million goodwill impairment
- Adjusted net income of RMB48.5 million, compared to a loss last year
- Cash and equivalents of RMB537.2 million as of May 31, 2024

The company saw strong performance in its Overseas Schools segment, offset by declines in Complementary Education Services and Domestic Kindergartens & K-12 Operation Services. Management highlighted improving utilization rates and enrollment growth in overseas schools.

Bright Scholar Education Holdings (NYSE: BEDU) ha riportato i risultati finanziari non auditati per il terzo trimestre dell'esercizio 2024. I punti salienti includono:

- Ricavi di 554,0 milioni di RMB, in crescita del 6,2% rispetto al trimestre precedente
- L'utile lordo è aumentato del 5,0% rispetto all'anno precedente, raggiungendo i 202,7 milioni di RMB
- Il margine lordo è migliorato al 36,6% rispetto al 32,9% nel terzo trimestre dell'esercizio 2023
- I ricavi delle scuole all'estero sono cresciuti del 19,4% rispetto all'anno precedente, arrivando a 264,9 milioni di RMB
- Perdita netta di 90,3 milioni di RMB, influenzata da un impairment di avviamento di 133 milioni di RMB
- Utile netto corretto di 48,5 milioni di RMB, rispetto a una perdita dell'anno scorso
- Liquidità e equivalenti di 537,2 milioni di RMB al 31 maggio 2024

L'azienda ha registrato una forte performance nel segmento delle scuole all'estero, compensata da un calo nei servizi di educazione supplementari e nei servizi operativi delle scuole materne e K-12 nazionali. La direzione ha evidenziato il miglioramento dei tassi di utilizzo e della crescita delle iscrizioni nelle scuole all'estero.

Bright Scholar Education Holdings (NYSE: BEDU) reportó sus resultados financieros no auditados para el tercer trimestre del año fiscal 2024. Los puntos destacados incluyen:

- Ingresos de 554,0 millones de RMB, un aumento del 6,2% en comparación con el trimestre anterior
- La ganancia bruta aumentó un 5,0% en comparación con el año anterior, alcanzando los 202,7 millones de RMB
- El margen bruto mejoró al 36,6% desde el 32,9% en el tercer trimestre del año fiscal 2023
- Los ingresos de las escuelas en el extranjero crecieron un 19,4% interanual, alcanzando los 264,9 millones de RMB
- Pérdida neta de 90,3 millones de RMB, impactada por una reducción de valor de intangibles de 133 millones de RMB
- Ingreso neto ajustado de 48,5 millones de RMB, en comparación con una pérdida el año pasado
- Efectivo y equivalentes de 537,2 millones de RMB al 31 de mayo de 2024

La compañía vio un rendimiento sólido en su segmento de escuelas en el extranjero, compensado por declives en servicios de educación complementaria y servicios de operación de jardines de infancia y K-12 en el país. La dirección destacó la mejora en las tasas de utilización y el crecimiento de inscripciones en las escuelas del exterior.

Bright Scholar Education Holdings (NYSE: BEDU)는 2024 회계연도 3분기 비감사 재무 결과를 발표했습니다. 주요 내용은 다음과 같습니다:

- 매출 5억 5천 4백만 RMB, 전 분기 대비 6.2% 증가
- 총 이익이 전년 대비 5.0% 증가하여 2억 2천 7백만 RMB에 도달
- 총 이익률이 2023 회계연도 3분기 32.9%에서 36.6%로 개선됨
- 해외 학교 매출이 전년 대비 19.4% 증가하여 2억 6천 4백 9십만 RMB에 도달
- 9천 3백만 RMB의 순손실, 1억 3천 3백만 RMB의 무형자산 손상 영향을 받음
- 작년 손실과 비교하여 조정된 순이익 4천 8백 5십만 RMB
- 2024년 5월 31일 기준 현금 및 현금성 자산 5억 3천 7백 2십만 RMB

회사는 해외 학교 부문에서 강력한 성과를 보였으나, 보충 교육 서비스와 국내 유치원 및 K-12 운영 서비스에서 감소가 있었습니다. 경영진은 해외 학교의 이용률 개선과 등록 성장세를 강조했습니다.

Bright Scholar Education Holdings (NYSE: BEDU) a annoncé ses résultats financiers non audités pour le troisième trimestre de l'exercice 2024. Les points saillants incluent :

- Revenus de 554,0 millions de RMB, en hausse de 6,2 % par rapport au trimestre précédent
- Le bénéfice brut a augmenté de 5,0 % par rapport à l'année précédente, atteignant 202,7 millions de RMB
- La marge brute s'est améliorée à 36,6 % contre 32,9 % au troisième trimestre de l'exercice 2023
- Les revenus des écoles à l'étranger ont augmenté de 19,4 % par rapport à l'année précédente, atteignant 264,9 millions de RMB
- Perte nette de 90,3 millions de RMB, impactée par une dépréciation de goodwill de 133 millions de RMB
- Le bénéfice net ajusté de 48,5 millions de RMB, par rapport à une perte l'année précédente
- Liquidités et équivalents de 537,2 millions de RMB au 31 mai 2024

L'entreprise a connu une forte performance dans son segment des écoles à l'étranger, compensée par des baisses dans les services d'éducation complémentaire et les services d'exploitation des jardins d'enfants et de K-12 nationaux. La direction a souligné l'amélioration des taux d'utilisation et la croissance des inscriptions dans les écoles à l'étranger.

Bright Scholar Education Holdings (NYSE: BEDU) hat seine nicht geprüften Finanzzahlen für das 3. Quartal des Geschäftsjahres 2024 veröffentlicht. Zu den wichtigsten Punkten gehören:

- Umsatz von 554,0 Millionen RMB, ein Anstieg um 6,2% im Vergleich zum Vorquartal
- Bruttogewinn stieg um 5,0% im Vergleich zum Vorjahr auf 202,7 Millionen RMB
- Die Bruttomarge verbesserte sich auf 36,6% von 32,9% im 3. Quartal des Geschäftsjahres 2023
- Der Umsatz der Schulen im Ausland wuchs um 19,4% im Vergleich zum Vorjahr auf 264,9 Millionen RMB
- Nettoverlust von 90,3 Millionen RMB, beeinträchtigt durch eine Wertminderung des Geschäfts- oder Firmenwerts von 133 Millionen RMB
- Bereinigter Nettoertrag von 48,5 Millionen RMB im Vergleich zu einem Verlust im Vorjahr
- Bargeld und Äquivalente von 537,2 Millionen RMB zum 31. Mai 2024

Das Unternehmen verzeichnete eine starke Leistung im Segment der Schulen im Ausland, die durch Rückgänge in den ergänzenden Bildungsdiensten und in den inländischen Vorschulen sowie K-12-Betriebsdiensten ausgeglichen wurde. Das Management hob die Verbesserung der Auslastungsquoten und das Wachstum der Einschreibungen in den Schulen im Ausland hervor.

Positive
  • Revenue increased 6.2% quarter-over-quarter to RMB554.0 million
  • Gross profit grew 5.0% year-over-year to RMB202.7 million
  • Gross margin improved to 36.6% from 32.9% in Q3 fiscal 2023
  • Overseas Schools revenue increased 19.4% year-over-year to RMB264.9 million
  • Adjusted net income of RMB48.5 million, compared to a loss last year
  • Student enrollment in Overseas Schools grew by 8% year-over-year
  • Utilization rate of overseas schools increased to 62%
  • Cash position strengthened to RMB537.2 million
Negative
  • Net loss of RMB90.3 million, compared to RMB37.7 million loss last year
  • Impairment loss on goodwill of RMB133 million
  • Complementary Education Services revenue decreased 18.3% year-over-year
  • Domestic Kindergartens & K-12 Operation Services revenue declined 23.9% year-over-year
  • Total revenue decreased 5.5% year-over-year

Insights

Bright Scholar's Q3 FY2024 results present a mixed picture. While there are some positive indicators, there are also concerning trends that investors should note:

  • Revenue growth: Overall revenue decreased by 5.5% year-over-year, but showed a 6.2% quarter-over-quarter increase. The Overseas Schools segment was the standout performer, with 19.4% YoY growth.
  • Profitability: Gross profit increased by 5.0% YoY, with gross margin expanding to 36.6% from 32.9%. This improvement suggests better cost management.
  • Net loss: The company reported a net loss of RMB90.3 million, significantly wider than the RMB37.7 million loss in the same quarter last year. However, this was largely due to a RMB133 million impairment loss on goodwill.
  • Adjusted metrics: Adjusted net income was RMB48.5 million, a notable improvement from an adjusted net loss of RMB34.8 million in the prior year period.

The company's focus on its core Overseas Schools business appears to be paying off, with strong enrollment growth and improved facility utilization. However, the underperformance of other segments and the significant goodwill impairment raise questions about the overall health of the business.

Investors should closely monitor the company's ability to sustain growth in its core segment while addressing challenges in other areas. The divestment of non-core businesses could lead to improved focus and efficiency, but it may also impact overall revenue in the short term.

Bright Scholar's Q3 results reflect the ongoing shifts in the global education landscape, particularly in China. Here are key insights for investors:

  • International education demand: The strong performance of the Overseas Schools segment (19.4% YoY growth) indicates robust demand for international education options. This trend is likely driven by Chinese families seeking global educational opportunities for their children.
  • Domestic challenges: The 23.9% YoY decline in the Domestic Kindergartens & K-12 Operation Services segment suggests ongoing regulatory pressures and market shifts in China's education sector.
  • Adaptation strategy: Bright Scholar's divestment of non-core businesses (international contest training and career counseling) demonstrates a strategic pivot towards higher-growth, core operations. This could lead to improved operational efficiency and resource allocation.
  • Enrollment trends: The 8% YoY growth in student enrollment for Overseas Schools, coupled with over 900 acceptances for the September intake, indicates strong market positioning in this segment.

The company's focus on enhancing teaching quality and student experience aligns with global trends in education. However, the challenges in complementary education services and domestic operations highlight the need for continued adaptation to regulatory and market changes.

Investors should watch for Bright Scholar's ability to leverage its brand and resources to further expand in high-return areas, particularly in international education. The company's strategic shifts could position it well for long-term growth, but may result in short-term volatility as it restructures its operations.

Gross Profit Increased 5.0% YoY and Revenue Increased 6.2% QoQ

Management to hold a conference call today at 8:00 a.m. Eastern Time

FOSHAN, China, Aug. 2, 2024 /PRNewswire/ -- Bright Scholar Education Holdings Limited ("Bright Scholar," the "Company," "we" or "our") (NYSE: BEDU), a global premier education service company, today announced its unaudited financial results for its fiscal 2024 third quarter ended May 31, 2024.

THIRD QUARTER OF FISCAL 2024 FINANCIAL HIGHLIGHTS

  • Revenue was RMB554.0 million, compared to RMB586.4 million for the same quarter last fiscal year, representing a quarter-over-quarter increase of 6.2%.
  • Revenue from Overseas Schools was RMB264.9 million, representing an increase of 19.4% from the same quarter last fiscal year.
  • Gross profit was RMB202.7 million, representing an increase of 5.0% from the same quarter last fiscal year. Gross margin increased to 36.6% from 32.9% for the same quarter last fiscal year.
  • Net loss was RMB90.3 million, compared to RMB37.7 million for the same quarter last fiscal year, mainly attributable to an impairment loss on goodwill of RMB133 million. Adjusted net income[1] was RMB48.5 million, compared to an adjusted net loss of RMB34.8 million for the same quarter last fiscal year.

Revenue by Segment

(RMB in millions except for percentage)

 





For the third quarter
ended

May 31,



YoY

% Change



% of total
revenue in
F3Q2024






2024



2023







Overseas Schools





 

264.9



 

221.8



 

19.4 %



 

47.8 %

Complementary Education Services[2]





 

169.5



 

207.5



 

-18.3 %



 

30.6 %

Domestic Kindergartens & K-12 Operation Services[3]





 

119.6



 

157.1



 

-23.9 %



 

21.6 %

Total





554.0



586.4



-5.5 %



100.0 %

 

[1].   Adjusted net income/(loss) is defined as net income/(loss) excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets and impairment loss on goodwill.

[2].   The Complementary Education Services business comprises language training, overseas study counselling, career counselling, study tours and camps, as well as international contest training and others.

[3].    The Domestic Kindergartens & K-12 Operation Services business comprises for-profit kindergartens and operation services for students of domestic K-12 schools, including catering and procurement services.

For more information on these adjusted financial measures, please see the section captioned "Non-GAAP Financial Measures" and the tables captioned "Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this release.

MANAGEMENT COMMENTARY 

Mr. Robert Niu, Chief Executive Officer of Bright Scholar, commented, "Our resilient business continues to recover and thrive. We delivered solid quarterly results amid an uncertain and evolving external environment through solid strategic execution and dedicated initiatives to fuel our global business. During the quarter, our core Overseas Schools business maintained its double-digit year-over-year revenue growth trajectory, and student enrollment grew by 8% compared to the same quarter last fiscal year. Year to date, over 900 students have accepted offers for our September intake. In addition, we are utilizing our facilities and teaching resources more effectively, increasing the utilization rate of our overseas schools to 62% during the quarter. As a global premier education service company, we are committed to enhancing teaching quality and fostering an enriched learning experience for our students. Aligned with our strategy to focus our resources on our high-growth core business while optimizing organizational structure to improve our operational and management efficiency, we divested our non-core international contest training business and career counseling business from our Complementary Education Services segment in May and June. Building on our well-established brand and abundant educational resources, we are well-positioned to expand our high-return businesses and are gearing up to seize the tremendous growth opportunities ahead."

Ms. Cindy Zhang, Chief Financial Officer of Bright Scholar, added, "We achieved healthy financial results in the third fiscal quarter. Led by our Overseas Schools business, our total revenues grew by 6% quarter over quarter on an expanding gross margin of 36.6%, up 370 basis points year-over-year and 560 basis points quarter over quarter. Driven by increases in both the number of students enrolled and the average tuition fees of overseas schools, our Overseas Schools revenue grew by 19.4% year-over-year. We also strengthened our cash position, closing the quarter with a total of RMB537.2 million in cash, cash equivalents and restricted cash. Our healthy balance sheet supports our organic growth initiatives as we work to create sustainable value for our customers and shareholders over the long term."

UNAUDITED FINANCIAL RESULTS FOR THE THIRD FISCAL QUARTER ENDED MAY 31, 2024

Revenue

Revenue was RMB554.0 million, compared to RMB586.4 million for the same quarter last fiscal year.

Overseas Schools: Revenue contribution was RMB264.9 million, representing a 19.4% increase from RMB221.8 million for the same quarter last fiscal year. The increase was mainly attributable to increases in both the number of students enrolled and the average tuition fees of overseas schools.

Complementary Education Services: Revenue contribution was RMB169.5 million, compared to RMB207.5 million for the same quarter last fiscal year. The decrease was mainly attributable to a reduction in extracurricular programs, study tours and the camp business.

Domestic Kindergartens & K-12 Operation Services: Revenue contribution was RMB119.6 million, compared with RMB157.1 million for the same quarter last fiscal year.

Cost of Revenue

Cost of revenue was RMB351.2 million, or 63.4% of revenue, compared to RMB393.4 million, or 67.1%, for the same quarter last fiscal year. The improvement was mainly attributable to cost-saving measures and efficiency enhancements in our headquarters.

Gross Profit, Gross Margin and Adjusted Gross Profit

Gross profit was RMB202.7 million, representing a 5.0% increase from RMB193.0 million for the same quarter last fiscal year. The increase was mainly attributable to the revenue growth in Overseas Schools. Gross margin increased to 36.6% from 32.9% for the same quarter last fiscal year.

Adjusted gross profit[4] was RMB205.9 million, representing a 4.7% increase from RMB196.7 million for the same quarter last fiscal year.

Selling, General and Administrative Expenses

Total SG&A expenses were RMB147.0 million, representing a 3.5% increase from RMB142.0 million for the same quarter last fiscal year.

Operating Loss/Income, Operating Margin and Adjusted Operating Income

Operating loss was RMB84.3 million, compared to an operating income of RMB73.9 million for the same quarter last fiscal year. Operating loss margin was 15.2%, compared to an operating income margin of 12.6% for the same quarter last fiscal year.

Adjusted operating income[5] was RMB55.1 million, compared to RMB77.6 million for the same quarter last fiscal year.

Net Loss and Adjusted Net Income/Loss

Net loss was RMB90.3 million, compared to RMB37.7 million for the same quarter last fiscal year.

Adjusted net income was RMB48.5 million, compared to an adjusted net loss of RMB34.8 million for the same quarter last fiscal year.

Adjusted EBITDA[6]

Adjusted EBITDA was RMB76.6 million, compared to RMB96.0 million for the same quarter last fiscal year.

Net Loss per Ordinary Share/ADS and Adjusted Net Earnings/Loss per Ordinary Share/ADS

Basic and diluted net loss per ordinary share attributable to ordinary shareholders were RMB0.56 each, compared to RMB0.32 each for the same quarter last fiscal year.

Adjusted basic and diluted net earnings per ordinary share[7] attributable to ordinary shareholders were RMB0.42 each, compared to adjusted basic and diluted net loss per ordinary share of RMB0.30 each for the same quarter last fiscal year.

Basic and diluted net loss per ADS attributable to ADS holders were RMB2.24 each, compared to RMB1.28 each for the same quarter last fiscal year.

Adjusted basic and diluted net earnings per ADS[8] attributable to ADS holders were RMB1.68 each, compared to adjusted basic and diluted net loss per ADS of RMB1.20 each for the same quarter last fiscal year.

Cash and Working Capital

As of May 31, 2024, the Company had cash and cash equivalents and restricted cash of RMB537.2 million (US$74.2 million), compared to RMB496.9 million as of February 29, 2024.

[4]    Adjusted gross profit is defined as gross profit excluding amortization of intangible assets.

[5].   Adjusted operating income/(loss) is defined as operating income/(loss) excluding share-based compensation expenses, amortization of intangible assets and impairment loss on goodwill.

[6].   Adjusted EBITDA is defined as net income/(loss) excluding interest income/(expense), net, income tax expense/benefit, depreciation and amortization, share-based compensation expenses and impairment loss on goodwill.

[7]  Adjusted basic and diluted earnings/(loss) per share is defined as adjusted net income/(loss) attributable to ordinary shareholders (net income/(loss) attributable to ordinary shareholders excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets and impairment loss on goodwill) divided by the weighted average number of basic and diluted ordinary shares.

[8].   Adjusted basic and diluted earnings per American depositary share ("ADS") is defined as adjusted net income attributable to ADS shareholders (net income attributable to ADS shareholders excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets and impairment loss on goodwill) divided by the weighted average number of basic and diluted ADSs.

CONFERENCE CALL 

The Company's management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong Time) on August 2, 2024.

Dial-in details for the earnings conference call are as follows:

Mainland China:  

4001-201203

Hong Kong: 

800-905945

United States: 

1-888-346-8982

International:

1-412-902-4272

Participants should dial in at least 5 minutes before the scheduled start time and ask to be connected to the call for "Bright Scholar Education Holdings Limited."

Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.brightscholar.com/.

A replay of the conference call will be accessible after the conclusion of the live call until August 9, 2024, by dialing the following telephone numbers:

United States Toll Free: 

1-877-344-7529

International:

1-412-317-0088

Replay Passcode: 

8092477

CONVENIENCE TRANSLATION

The Company's reporting currency is Renminbi ("RMB"). However, periodic reports made to shareholders will include current period amounts translated into U.S. dollars using the prevailing exchange rates at the balance sheet date for the convenience of readers. Translations of balances in the condensed consolidated balance sheets, and the related condensed consolidated statements of operations, and cash flows from RMB into U.S. dollars as of and for the quarter ended May 31, 2024 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.2410, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on May 31, 2024. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on May 31, 2024, or at any other rate.

NON-GAAP FINANCIAL MEASURES

In evaluating our business, we consider and use certain non-GAAP measures, including primarily adjusted EBITDA, adjusted net income/(loss), adjusted gross profit/(loss), adjusted operating income/(loss), adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders basic and diluted 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 gross profit/(loss) as gross profit/(loss) excluding amortization of intangible assets. We define adjusted EBITDA as net income/(loss) excluding interest income/(expense), net, income tax expense/benefit, depreciation and amortization, share-based compensation expenses and impairment loss on goodwill. We define adjusted net income/(loss) as net income/(loss) excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets and impairment loss on goodwill. We define adjusted operating income/(loss) as operating income/(loss) excluding share-based compensation expenses, amortization of intangible assets and impairment loss on goodwill. Additionally, we define adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders, basic and diluted, as adjusted net income/(loss) attributable to ordinary shareholders/ADS holders (net income/(loss) to ordinary shareholders/ADS holders excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets and impairment loss on goodwill) divided by the weighted average number of basic and diluted ordinary shares or ADSs.

We incur amortization expense of intangible assets related to various acquisitions that have been made in recent years. These intangible assets are valued at the time of acquisition and are then amortized over a period of several years after the acquisition. We believe that exclusion of these expenses allows greater comparability of operating results that are consistent over time for the Company's newly-acquired and long-held business as the related intangibles do not have significant connection to the growth of the business. Therefore, we provide exclusion of amortization of intangible assets to define adjusted gross profit, adjusted operating income/(loss), adjusted net income/(loss), and adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders, basic and diluted.

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 include adjusted EBITDA, adjusted net income/(loss), adjusted gross profit/(loss), adjusted operating income/(loss), adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders basic and diluted. Non-GAAP financial measures enable our management to assess our operating results without considering the impact of non-cash charges, including depreciation and amortization and share-based compensation expenses, and without considering the impact of non-operating items such as interest income/(expense), net; income tax expense/benefit; share-based compensation expenses; amortization of intangible assets, tax effect of amortization of intangible assets and impairment loss on goodwill. We also believe that the use of these non-GAAP measures facilitates 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/(expense), net; income tax expense/benefit; depreciation and amortization; share-based compensation expense; tax effect of amortization of intangible assets, and impairment loss on goodwill 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 a premier global education service Group. The Company primarily provides quality international education to global students and equips them with the critical academic foundation and skillsets necessary to succeed in the pursuit of higher education.  

For more information, please visit: https://ir.brightscholar.com/.

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, which 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:
Email: BEDU@thepiacentegroup.com
Phone: +86 (10) 6508-0677/ +1-212-481-2050

Media Contact:
Email: media@brightscholar.com
Phone: +86-757-2991-6814

 

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)




As of



August 31,

     May 31,



2023

2024



RMB

RMB


USD








ASSETS







Current assets







Cash and cash equivalents 


537,325


515,200


71,150

Restricted cash  


28,261


21,789


3,009

Accounts receivable          


19,209


27,549


3,805

Amounts due from related parties, net   


188,445


128,607


17,761

Other receivables, deposits and other assets, net


148,679


129,597


17,898

Inventories


5,480


3,872


535








Total current assets     


927,399


826,614


114,158








Restricted cash - non-current


1,650


250


35

Property and equipment, net


414,225


363,267


50,168

Intangible assets, net


343,077


325,128


44,901

Goodwill, net     


1,328,872


1,182,035


163,242

Long-term investments, net    


36,070


35,716


4,932

Prepayments for construction contracts


1,711


1,540


213

Deferred tax assets, net     


1,810


1,498


207

Other non-current assets, net


15,249


12,885


1,779

Operating lease right-of-use assets - non current


1,549,447


1,456,486


201,144








Total non-current assets             


3,692,111


3,378,805


466,621








TOTAL ASSETS    


4,619,510


4,205,419


580,779

 

 

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS-CONTINUED

(Amounts in thousands)




As of



August 31,

May 31,



2023

2024



RMB

RMB


USD

LIABILITIES AND EQUITY







Current liabilities







Accounts payable


105,193


105,927


14,629

Amounts due to related parties


311,451


214,836


29,669

Accrued expenses and other current liabilities


279,690


225,063


31,082

Income tax payable


99,367


93,440


12,904

Contract liabilities - current


541,683


416,084


57,462

Refund liabilities - current 


17,572


15,929


2,200

Operating lease liabilities - current


125,447


121,235


16,743








Total current liabilities


1,480,403


1,192,514


164,689








Non-current contract liabilities


2,116


2,597


359

Deferred tax liabilities, net


42,093


34,652


4,786

Operating lease liabilities - non current         


1,523,242


1,446,627


199,783








Total non-current liabilities        


1,567,451


1,483,876


204,928








TOTAL LIABILITIES            


3,047,854


2,676,390


369,617









EQUITY







Share capital      


8


8


1

Additional paid-in capital  


1,697,370


1,706,654


235,693

Statutory reserves              


20,155


19,616


2,709

Accumulated other comprehensive income


172,230


178,803


24,693

Accumulated deficit           


(473,154)


(485,455)


(67,043)








Shareholders' equity   


1,416,609


1,419,626


196,053

Non-controlling interests            


155,047


109,403


15,109








TOTAL EQUITY   


1,571,656


1,529,029


211,162








TOTAL LIABILITIES AND EQUITY   


4,619,510


4,205,419


580,779

 

 

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 

(Amounts in thousands, except for shares and per share data) 



Three Months Ended May 31 


Nine Months Ended May 31 


2023


2024


2023


2024


RMB


RMB


USD


RMB


RMB


USD













Revenue

586,446


553,976


76,505


1,563,977


1,648,158


227,615

Cost of revenue

(393,418)


(351,227)


(48,505)


(1,075,767)


(1,080,294)


(149,191)













Gross profit

193,028


202,749


28,000


488,210


567,864


78,424

Selling, general and administrative expenses

(142,016)


(146,989)


(20,300)


(437,730)


(431,735)


(59,624)

Impairment loss on goodwill

-


(133,022)


(18,371)


-


(133,022)


(18,371)

Other operating income/(loss)

22,937


(7,033)


(971)


49,119


4,369


603













Operating income/(loss)

73,949


(84,295)


(11,642)


99,599


7,476


1,032

Interest expense, net

(2,859)


(22)


(3)


(8,587)


(2,457)


(339)

Investment income /(loss)

614


5,127


708


(849)


5,605


774

Other expenses

(23)


3,496


483


(2,776)


106


14













Income/(loss) before income taxes and share of
equity in (loss)/profit of unconsolidated affiliates

71,681


(75,694)


(10,454)


87,389


10,730


1,481

Income tax expense

(109,327)


(14,543)


(2,008)


(133,493)


(38,988)


(5,384)

Share of equity in (loss)/profit of unconsolidated affiliates

(52)


(43)


(6)


(400)


81


11













Net loss

(37,698)


(90,280)


(12,468)


(46,506)


(28,177)


(3,892)













Net income/(loss) attributable to non-controlling interests

397


(24,210)


(3,343)


4,020


(19,761)


(2,729)













Net loss attributable to ordinary shareholders

(38,095)


(66,070)


(9,125)


(50,526)


(8,416)


(1,163)













Net loss per share attributable to












   ordinary shareholders












—Basic

(0.32)


(0.56)


(0.08)


(0.43)


(0.07)


(0.01)

—Diluted

(0.32)


(0.56)


(0.08)


(0.43)


(0.07)


(0.01)

























Weighted average shares used in












  calculating net loss per ordinary share:












—Basic

118,669,795


118,669,795


118,669,795


118,669,795


118,669,795


118,669,795

—Diluted

118,669,795


118,669,795


118,669,795


118,669,795


118,669,795


118,669,795













Net loss per ADS












—Basic

(1.28)


(2.24)


(0.32)


(1.72)


(0.28)


(0.04)

—Diluted

(1.28)


(2.24)


(0.32)


(1.72)


(0.28)


(0.04)

 

 

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)



Three Months Ended May 31


Nine Months Ended May 31


2023


2024


2023


2024


RMB


RMB


USD


RMB


RMB


USD













Net cash (used in)/generated from operating activities

(8,198)


96,249


13,292


15,338


22,353


3,087













Net cash (used in)/generated from investing activities

(20,990)


10,713


1,479


(32,946)


30,011


4,145













Net cash used in financing activities

(41,255)


(71,323)


(9,850)


(90,397)


(84,258)


(11,636)













Effect of exchange rate changes on cash and cash
equivalents, and restricted cash

7,873


4,740


655


15,615


1,897


261













Net change in cash and cash equivalents,












and restricted cash

(62,570)


40,379


5,576


(92,390)


(29,997)


(4,143)













Cash and cash equivalents, and restricted cash












at beginning of the period

827,964


496,860


68,618


857,784


567,236


78,337













Cash and cash equivalents, and restricted cash












at end of the period

765,394


537,239


74,194


765,394


537,239


74,194

 

 

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED 

Reconciliations of GAAP and Non-GAAP Results 

(Amounts in thousands, except for shares and per share data) 



Three Months Ended May 31


Nine Months Ended May 31 


2023


2024


2023


2024


RMB


RMB


USD


RMB


RMB


USD













Gross profit

193,028


202,749


28,000


488,210


567,864


78,424

Add: Amortization of intangible assets

3,642


3,117


430


11,274


9,633


1,330

Adjusted gross profit

196,670


205,866


28,430


499,484


577,497


79,754













Operating income/(loss)

73,949


(84,295)


(11,642)


99,599


7,476


1,032

Add: Share-based compensation expenses

-


3,240


447


-


4,860


671

Add: Amortization of intangible assets

3,642


3,117


430


11,274


9,633


1,330

Add: Impairment loss on goodwill

-


133,022


18,371


-


133,022


18,371

Adjusted operating income

77,591


55,084


7,606


110,873


154,991


21,404













Net loss

(37,698)


(90,280)


(12,468)


(46,506)


(28,177)


(3,892)

Add: Share-based compensation expenses

-


3,240


447


-


4,860


671

Add: Amortization of intangible assets

3,642


3,117


430


11,274


9,633


1,330

Add: Tax effect of amortization of intangible assets

(738)


(631)


(87)


(2,302)


(1,951)


(269)

Add: Impairment loss on goodwill

-


133,022


18,371


-


133,022


18,371

Adjusted net (loss)/income

(34,794)


48,468


6,693


(37,534)


117,387


16,211













Net loss attributable to ordinary shareholders

(38,095)


(66,070)


(9,125)


(50,526)


(8,416)


(1,163)

Add: Share-based compensation expenses

-


3,240


447


-


4,860


671

Add: Amortization of intangible assets

3,642


3,117


430


11,274


9,633


1,330

Add: Tax effect of amortization of intangible assets

(738)


(631)


(87)


(2,302)


(1,951)


(269)

Add: Impairment loss on goodwill

-


110,305


15,233


-


110,305


15,233

Adjusted net (loss)/income attributable to
ordinary shareholders

(35,191)


49,961


6,898


(41,554)


114,431


15,802













Net loss

(37,698)


(90,280)


(12,468)


(46,506)


(28,177)


(3,892)

Add: Interest expense, net

2,859


22


3


8,587


2,457


339

Add: Income tax expense

109,327


14,543


2,008


133,493


38,988


5,384

Add: Depreciation and amortization

21,553


16,064


2,218


63,929


49,981


6,902

Add: Share-based compensation expenses

-


3,240


447


-


4,860


671

Add: Impairment loss on goodwill

-


133,022


18,371


-


133,022


18,371

Adjusted EBITDA

96,041


76,611


10,579


159,503


201,131


27,775













Weighted average shares used












   in calculating adjusted net (loss)/income per
ordinary share:












Basic and Diluted

118,669,795


118,669,795


118,669,795


118,669,795


118,669,795


118,669,795













Adjusted net (loss)/income per share attributable












   to ordinary shareholders












—Basic

(0.30)


0.42


0.06


(0.35)


0.96


0.13

—Diluted

(0.30)


0.42


0.06


(0.35)


0.96


0.13













Adjusted net (loss)/income per ADS












—Basic

(1.20)


1.68


0.24


(1.40)


3.84


0.52

—Diluted

(1.20)


1.68


0.24


(1.40)


3.84


0.52

 

 

Cision View original content:https://www.prnewswire.com/news-releases/bright-scholar-announces-unaudited-financial-results-for-the-third-quarter-of-fiscal-2024-302213333.html

SOURCE Bright Scholar Education Holdings Ltd.

FAQ

What was Bright Scholar's revenue for Q3 fiscal 2024?

Bright Scholar's revenue for Q3 fiscal 2024 was RMB554.0 million, representing a 6.2% increase quarter-over-quarter but a 5.5% decrease year-over-year.

How did Bright Scholar's Overseas Schools segment perform in Q3 fiscal 2024?

Bright Scholar's Overseas Schools segment performed well, with revenue increasing 19.4% year-over-year to RMB264.9 million. Student enrollment grew by 8% compared to the same quarter last fiscal year.

What was Bright Scholar's net loss for Q3 fiscal 2024?

Bright Scholar reported a net loss of RMB90.3 million for Q3 fiscal 2024, compared to a net loss of RMB37.7 million for the same quarter last fiscal year. The increase in net loss was mainly due to an impairment loss on goodwill of RMB133 million.

How much cash did Bright Scholar have as of May 31, 2024?

As of May 31, 2024, Bright Scholar had cash and cash equivalents and restricted cash of RMB537.2 million (US$74.2 million).

Bright Scholar Education Holdings Limited American Depositary Shares, each representing four (4)

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