Bright Scholar Announces Unaudited Financial Results for the Third Fiscal Quarter of Fiscal 2022
Bright Scholar Education Holdings Limited (NYSE: BEDU) reported its third fiscal quarter results for 2022, showing a 20.7% revenue increase to RMB 437.5 million from RMB 362.4 million YoY. Gross profit surged 158.2% to RMB 135.4 million, with a gross margin of 30.9%. Despite a net loss of RMB 7.1 million, adjusted EBITDA soared by 2,052.6% to RMB 69.0 million. Operating income reported was RMB 19.3 million, up 127.5%. Revenue from overseas schools rose 32.1%, while domestic kindergartens saw a 53.6% increase in revenue. The company is focused on recovery and cost management amidst ongoing challenges.
- Revenue increased 20.7% YoY to RMB 437.5 million.
- Gross profit rose by 158.2% to RMB 135.4 million with a gross margin of 30.9%.
- Adjusted EBITDA increased 2,052.6% to RMB 69.0 million.
- Operating income improved to RMB 19.3 million from a loss of RMB 70.1 million YoY.
- Revenue from overseas schools grew 32.1% and domestic K-12 services increased 53.6%.
- Net loss of RMB 7.1 million compared to net income of RMB 163.9 million YoY.
- Continued impact from pandemic and travel restrictions on certain revenue streams.
FOSHAN, China, Aug. 4, 2022 /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 the third fiscal quarter of fiscal 2022 ended May 31, 2022.
FINANCIAL PERFORMANCE HIGHLIGHTS
Third Fiscal Quarter Ended May 31, 2022 Financial Highlights
(in comparison to the same period of the last fiscal year):
RMB in million Except EPS and % | Third Fiscal Quarter Ended May 31, 2022 | Third Fiscal Quarter Ended May 31, 2021 | YoY % Change |
Revenue from continuing operations | 437.5 | 362.4 | 20.7 % |
Gross Profit from continuing operations | 135.4 | 52.4 | 158.2 % |
Gross Margin from continuing operations | 30.9 % | 14.5 % | 16.4 % |
Operating Income/(Loss) from continuing operations | 19.3 | (70.1) | 127.5 % |
Operating Margin from continuing operations | 4.4 % | (19.3 %) | 23.7 % |
Income from discontinued operations, net of tax | - | 258.1 | - |
Net (Loss)/Income for the quarter | (7.1) | 163.9 | (104.3 %) |
Adjusted Gross Profit from continuing operations (1) | 139.9 | 56.6 | 147.1 % |
Adjusted Operating Income/(Loss) from continuing operations (2) | 23.8 | (65.3) | 136.4 % |
Adjusted Net Loss(3) for the quarter | (3.5) | (90.2) | 96.1 % |
Adjusted EBITDA (4) for the quarter | 69.0 | 3.2 | 2,052.6 % |
Basic and Diluted Loss per Share from continuing operations | (0.08) | (0.73) | 89.0 % |
Basic and Diluted Earnings per Share from discontinued operations | - | 2.16 | - |
Adjusted Basic and Diluted Loss per Share (5) for the quarter | (0.05) | (0.69) | 92.8 % |
Nine Months Ended May 31, 2022 Financial Highlights
(in comparison to the same period of the last fiscal year):
RMB in million Except EPS and % | Nine Months Ended May 31, 2022 | Nine Months Ended May 31, 2021 | YoY % Change |
Revenue from continuing operations | 1,311.1 | 1,081.8 | 21.2 % |
Gross Profit from continuing operations | 394.3 | 173.2 | 127.7 % |
Gross Margin from continuing operations | 30.1 % | 16.0 % | 14.1 % |
Operating Loss from continuing operations | (3.7) | (185.7) | 98.0 % |
Operating Margin from continuing operations | (0.3 %) | (17.2 %) | 16.9 % |
Income from discontinued operations, net of tax | - | 568.3 | - |
Net (Loss)/Income for the period | (60.0) | 312.4 | (119.2 %) |
Adjusted Gross Profit from continuing operations (1) | 408.2 | 184.7 | 121.1 % |
Adjusted Operating Income/(Loss) from continuing operations (2) | 9.4 | (172.2) | 105.5 % |
Adjusted Net Loss (3) for the period | (49.9) | (244.7) | 79.6 % |
Adjusted EBITDA (4) for the period | 196.7 | (0.5) | 42,300.6 % |
Basic and Diluted Loss per Share from continuing operations | (0.49) | (2.13) | 77.0 % |
Basic and Diluted Earnings per Share from discontinued operations | - | 4.74 | - |
Adjusted Basic and Diluted Loss per Share (5) for the period | (0.41) | (2.04) | 79.9 % |
1. Adjusted gross profit/(loss) from continuing operations is defined as gross profit/(loss) from continuing operations excluding amortization of intangible assets. |
2. Adjusted operating income/(loss) from continuing operations is defined as operating income/(loss) from continuing operations excluding share-based compensation expense and amortization of intangible |
3. Adjusted net income/(loss) is defined as net income/(loss) excluding share-based compensation expense, amortization of intangible assets, tax effect of amortization of intangible assets and income/(loss) |
4. Adjusted EBITDA is defined as net income/(loss) excluding interest income/(expense), net, income tax expense/benefit; depreciation and amortization, share-based compensation expense and income/(loss) |
5. 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- |
For more information on these adjusted financial measures, please see the section captioned under "Non-GAAP Financial Measures" and the tables captioned "Reconciliations of GAAP and Non-GAAP Results" |
Overseas Schools (CATS Global Schools)
CATS Global Schools include 4 Stafford House locations in UK, 4 CATS Colleges in US and UK, Cambridge School of Visual & Performing Arts and 3 independent boarding schools in UK as of May 31, 2022.
- Revenue amounted to RMB187.9 million, representing a
32.1% increase compared to RMB142.3 million in the same fiscal quarter last year, and accounted for42.9% of the total revenue for the third fiscal quarter. - For the nine-month period, revenue amounted to RMB531.1 million, representing a
24.4% increase compared to RMB427.1 million in the same period of last fiscal year, and accounted for40.5% of the total revenue.
Complementary Education Services
The complementary education services business comprises language training, overseas study counselling, career counselling, study tour and camps as well as international contest training and others.
- Revenue amounted to RMB138.0 million, compared to RMB147.5 million in the same fiscal quarter last year, and accounted for
31.5% of the total revenue for the third fiscal quarter. - For the nine-month period, revenue amounted to RMB456.9 million, representing a
3.1% increase compared to RMB443.0 million for the same period of last fiscal year, and accounted for34.8% of the total revenue.
Domestic Kindergartens & K-12 Operation Services
The domestic kindergartens & K-12 operation services business comprises of for-profit kindergartens and operation services for domestic K-12 schools including catering and procurement services.
- Revenue amounted to RMB111.6 million, representing a
53.6% increase compared to RMB72.6 million in the same fiscal quarter last year, and accounted for25.6% of the total revenue for the third fiscal quarter. - For the nine-month period, revenue amounted to RMB323.1 million, representing a
52.6% increase compared to RMB211.7 million for the same period of last fiscal year, and accounted for24.7% of the total revenue.
RECENT DEVELOPMENTS
On Repayment of Senior Notes
As of the earnings release date, Bright Scholar has redeemed all of its outstanding senior notes matured (the "Redemption") on July 31, 2022 (the "Maturity Date"). The redemption price included the principal amount of all outstanding Senior Notes of US
Upon completion of the Redemption, all the senior notes will be cancelled and delisted from the official list of the Hong Kong Stock Exchange.
On Going Private Proposal
On April 29, 2022, the Company received a preliminary non-binding proposal letter (the "Proposal") from its Chairperson of the board of directors (the "Board"), Ms. Huiyan Yang, and Ms. Meirong Yang (collectively, the "Buyer Group") proposing to acquire all of the outstanding Class A ordinary shares of the Company (the "Class A Shares"), including Class A Shares represented by American depositary shares (the "ADSs," each representing one Class A ordinary share), and Class B ordinary shares of the Company (the "Class B Shares," and together with the Class A Shares, the "Shares") that are not beneficially owned by the Buyer Group for a purchase price of US
On May 6, 2022, the Board announced that it is has formed a special committee (the "Special Committee") consisting of three independent directors, Mr. Peter Andrew Schloss, Mr. Jun Zhao and Mr. Ronald J. Packard, to evaluate and consider the Proposal. Mr. Schloss chairs the Special Committee.
On July 21, 2022, the Special Committee announced the appointment of Citigroup Global Markets Asia Limited as independent financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel to the Special Committee to assist it in the process of reviewing and evaluation of the Proposal and any alternative strategic options that the Company may pursue.
"Multiple market and segment performances reflect broad and gradual resumption of its business momentum," said Mr. Jerry He, Executive Vice Chairman of Bright Scholar. "For continuing operation in the quarter, we recorded a
Mr. He commented on the performance of overseas school business, "The recovery of overseas business has started to gather momentum. We are pleased to see more and more students back to campus, as a result, our top line revenue increased
"Despite the challenges amid the regional outbreak of pandemic and travel restrictions, the effective COVID-19 containment strategy continues to provide a conducive environment for business recovery across China," commented by Mr. Zi Chen, Chief Executive Officer of Complementary Education Services. "In particularly, we have been encouraged by the recovery of our overseas study counselling, international contest training, and other quality training business with respective revenue grew by
"Our focus remains firmly on rebuilding our business revenues and we are pleased with the progress," said Ms. Wanmei Li, Chief Executive Officer of Domestic Kindergartens & K-12 Operation Services. "In the quarter, revenue increased by
Mr. He concluded, "Looking ahead, we will be vigilant to the continued risks related to rising inflationary cost pressures, COVID, geopolitical tensions, and regulatory changes that could affect our businesses. The management team remains steadfast in its commitment to rebuild our domestic business, further improve operational efficiency through effective cost control, strengthen business resilience through diversification and capitalize emerging opportunities to speed up the pace of recovery."
UNAUDITED FINANCIAL RESULTS FOR THE THIRD FISCAL QUARTER ENDED MAY 31, 2022
Revenue from Continuing Operations
Revenue for the quarter was RMB437.5 million, representing a
Overseas Schools: Revenue contribution for the quarter was RMB187.9 million, representing a
Complementary Education Services: Revenue contribution for the quarter was RMB138.0 million, as compared to RMB147.5 million for the same period of the last fiscal year. The decrease was mainly attributable to the decrease in language training and study tour and camp business.
Domestic Kindergartens & K-12 Operation Services: Revenue contribution for the quarter was RMB111.6 million, representing a
We have continued to provide essential services without recognizing any revenues relating to such activities to schools provide compulsory education in our discontinued operations, which are key to the normal daily operation of such schools.
Cost of Revenue from Continuing Operations
Cost of revenue for the quarter was RMB302.2 million, as compared to RMB310.0 million for the same period last fiscal year.
Gross Profit, Gross Margin and Adjusted Gross Profit from Continuing Operations
Gross profit for the quarter was RMB135.4 million, representing a
Adjusted gross profit for the quarter was RMB139.9 million, representing a
Selling, General and Administrative Expenses and Adjusted SG&A Expenses from Continuing Operations (6)
Total SG&A expenses for the quarter were RMB117.1 million, as compared to RMB129.2 million for the same period of the last fiscal year.
Adjusted SG&A expenses for the quarter were RMB117.1 million, as compared to RMB128.5 million for the same period of the last fiscal year.
6. Adjusted SG&A expenses from continuing operations is defined as selling, general and administrative expenses from continuing operations excluding share-based compensation expense. |
Operating Income/Loss, Operating Margin and Adjusted Operating Income/Loss from Continuing Operations
Operating income for the quarter was RMB19.3 million, representing a
Adjusted operating income for the quarter was RMB23.8 million, representing a
Net (Loss)/Income and Adjusted Net Loss
Net loss for the quarter was RMB7.1 million. Net income was RMB163.9 million for the same period of the last fiscal year, which includes net loss of RMB94.2 million from continuing operations and net income of RMB258.1 million from discontinued operations.
Adjusted net loss for the quarter was RMB3.5 million, as compared to adjusted net loss of RMB90.2 for the same period of the last fiscal year.
Net Loss per ordinary share/ADS and Adjusted Net Loss per ordinary share/ADS
Basic and diluted net loss per ordinary share/ADS attributable to ordinary shareholders/ADS holders from continuing operations for the quarter were RMB0.08 and RMB0.08, respectively, as compared to loss of RMB0.73 and RMB0.73, respectively, for the same period of the last fiscal year.
Adjusted basic and diluted net loss per ordinary share/ADS attributable to ordinary shareholders/ADS holders for the quarter were RMB0.05 and RMB0.05, respectively, as compared to loss of RMB0.69 and RMB0.69, respectively, for the same period of the last fiscal year.
Adjusted EBITDA
Adjusted EBITDA for the quarter was RMB69.0 million, as compared to RMB3.2 million for the same period of the last fiscal year.
UNAUDITED FINANCIAL RESULTS FOR THE NINE MONTHS ENDED MAY 31, 2022
Revenue from Continuing Operations
Revenue for the period was RMB1,311.1 million, representing a
Overseas Schools: Revenue contribution for the period was RMB531.1 million, representing a
Complementary Education Services: Revenue contribution for the period was RMB456.9 million. It represented a
Domestic Kindergartens & K-12 Operation Services: Revenue contribution for the period was RMB323.1 million, representing a
We have continued to provide essential services without recognizing any revenues relating to such activities to schools that provide compulsory education in our discontinued operations, which are key to the normal daily operation of such schools.
Cost of Revenue from Continuing Operations
Cost of revenue for the period was RMB916.7 million, as compared to RMB908.6 million for the same period last fiscal year.
Gross Profit, Gross Margin and Adjusted Gross Profit from Continuing Operations
Gross profit for the period was RMB394.3 million, representing a
Adjusted gross profit for the period was RMB408.2 million, representing a
Selling, General and Administrative Expenses and Adjusted SG&A Expenses from Continuing Operations
Total SG&A expenses for the period were RMB402.1 million, as compared to RMB377.4 million for the same period of the last fiscal year.
Adjusted SG&A expenses for the period were RMB402.9 million, as compared to RMB375.3 million for the same period of the last fiscal year.
Operating Loss, Operating Margin and Adjusted Operating Income/Loss from Continuing Operations
Operating loss for the period was RMB3.7 million, representing a
Adjusted operating income for the period was RMB9.4 million, representing a
Net (Loss)/Income and Adjusted Net Loss
Net loss for the period was RMB60.0 million. Net income was RMB312.4 million for the same period of the last fiscal year, which includes net loss of RMB255.9 million from continuing operations and net income of RMB568.3 million from discontinued operations.
Adjusted net loss for the period was RMB49.9 million, as compared to adjusted net loss of RMB244.7 for the same period of the last fiscal year.
Net Loss per ordinary share/ADS and Adjusted Net Loss per ordinary share/ADS
Basic and diluted net loss per ordinary share/ADS attributable to ordinary shareholders/ADS holders from continuing operations for the period were RMB0.49 and RMB0.49, respectively, as compared to loss of RMB2.13 and RMB2.13, respectively, for the same period of the last fiscal year.
Adjusted basic and diluted net loss per ordinary share/ADS attributable to ordinary shareholders/ADS holders for the period were RMB0.41 and RMB0.41, respectively, as compared to loss of RMB2.04 and RMB2.04, respectively, for the same period of the last fiscal year.
Adjusted EBITDA
Adjusted EBITDA for the period was RMB196.7 million, as compared to adjusted EBITDA loss of RMB0.5 million for the same period of the last fiscal year.
Cash and Working Capital
As of May 31, 2022, the Company's cash and cash equivalents and restricted cash were RMB1,371.6 million (US
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 and nine-month ended May 31, 2022 are solely for the convenience of the readers and were calculated at the rate of US
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 SG&A expenses, adjusted operating income/(loss), adjusted net earnings/(loss) per share attributable to ordinary shareholders 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) from continuing operations as gross profit/(loss) from continuing operations 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 expense and income/(loss) from discontinued operations, net of tax. We define adjusted net income/(loss) as net income/(loss) excluding share-based compensation expense, amortization of intangible assets, tax effect of amortization of intangible assets and income/(loss) from discontinued operations, net of tax. We define adjusted SG&A expenses from continuing operations as selling, general and administration expense from continuing operations excluding share-based compensation expense. We define adjusted operating income/(loss) from continuing operations as net operating income/(loss) from continuing operations excluding share-based compensation expense and amortization of intangible assets. Additionally, we define adjusted net earnings/(loss) per share attributable to ordinary shareholders, basic and diluted, as adjusted net income/(loss) attributable to ordinary shareholders (net income/(loss) to ordinary shareholders excluding share-based compensation expense, amortization of intangible assets, tax effect of amortization of intangible assets and income/(loss) from discontinued operations, net of tax) divided by the weighted average number of basic and diluted ordinary shares or American depositary shares, each representing one Class A ordinary share of the Company, on an as-converted basis.
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 from continuing operations, adjusted operating income/(loss) from continuing operations, adjusted net income/(loss), and adjusted net earnings/(loss) per share attributable to ordinary shareholders, basic and diluted. In addition, due to the impact of the amended Implementation Regulations of the Law on the Promotion of Private Education of the People's Republic of China (the "Implementation Rules"), the Affected Entities(7) deconsolidated is classified as discontinued operations, which is a non-recurring item. The exclusion facilitates comparisons of our operating performance on a period-to-period basis. Therefore, we provide exclusion of income/(loss) from discontinued operations, net of tax, to define adjusted net income/(loss), adjusted EBITDA, adjusted net earnings/(loss) per share attributable to ordinary shareholders, 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) from continuing operations, adjusted SG&A expenses from continuing operations, adjusted operating income/(loss) from continuing operations, adjusted net earnings/(loss) per share attributable to ordinary shareholders 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 expense, and without considering the impact of non-operating items such as interest income/(expense), net; income tax expense/benefit; share-based compensation expense; amortization of intangible assets, tax effect of amortization of intangible assets, and without considering the impact of non-recurring item, i.e. income/(loss) from discontinued operations. 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 income/(loss) from discontinued operations, 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.
7. Affected Entities refers to private schools, entities holding such private schools as well as other enterprises within China that are affected by the Implementation Rules effective on September 1, 2021. |
About Bright Scholar Education Holdings Limited
Bright Scholar is a global premier education service company, which primarily provides quality international education to global students and equip them with the critical academic foundation and skillsets necessary to succeed in the pursuit of higher education. Bright Scholar also complements its international offerings with Chinese government-mandated curriculum for students who wish to maintain the option of pursuing higher education in China.
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:
GCM Strategic Communications
Email: BEDU.IR@gcm.international
Media Contact:
Email: media@brightscholar.com
Phone: +86-757-6683-2507
BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED | |||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Amounts in thousands) | |||||||
As of | |||||||
August 31, | May 31, | ||||||
2021 | 2022 | ||||||
RMB | RMB | USD | |||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | 844,684 | 759,848 | 113,895 | ||||
Restricted cash | 669,029 | 610,092 | 91,447 | ||||
Short-term investments(1) | - | 1,234,799 | 185,086 | ||||
Accounts receivable, net | 41,723 | 21,197 | 3,177 | ||||
Amounts due from related parties, net | 15,087 | 305,489 | 45,790 | ||||
Other receivables, deposits and other assets, net | 81,119 | 115,790 | 17,356 | ||||
Inventories | 7,579 | 6,727 | 1,008 | ||||
Amount due from affected entities(2), net | 2,028,866 | - | - | ||||
Total current assets | 3,688,087 | 3,053,942 | 457,759 | ||||
Restricted cash - non current | 1,450 | 1,650 | 247 | ||||
Property and equipment, net | 519,452 | 397,853 | 59,635 | ||||
Intangible assets, net | 485,822 | 452,491 | 67,824 | ||||
Goodwill, net | 1,950,186 | 1,887,082 | 282,857 | ||||
Long-term investments | 75,443 | 80,001 | 11,991 | ||||
Prepayment for construction contract | 5,974 | 1,738 | 260 | ||||
Deferred tax assets, net | 64,096 | 131,832 | 19,760 | ||||
Other non-current assets, net | 68,217 | 12,360 | 1,856 | ||||
Operating lease right-of-use assets | 1,773,773 | 1,625,440 | 243,639 | ||||
Total non-current assets | 4,944,413 | 4,590,447 | 688,069 | ||||
TOTAL ASSETS | 8,632,500 | 7,644,389 | 1,145,828 | ||||
1. As of May 31, 2022, all short-term investments principal are guaranteed by a related party of the Company. | |||||||
2. The Affected Entities were deconsolidated on August 31, 2021, and became the related parties of the Company since September 1, 2021. | |||||||
BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED | |||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS-CONTINUED | |||||||
(Amounts in thousands) | |||||||
As of | |||||||
August 31, | May 31, | ||||||
2021 | 2022 | ||||||
RMB | RMB | USD | |||||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable (including accounts | 73,411 | 103,580 | 15,526 | ||||
Amounts due to related parties | 40,445 | 461,379 | 69,157 | ||||
Accrued expenses and other current | 234,036 | 297,540 | 44,597 | ||||
Short term loan (including short term | 753,754 | 480,000 | 71,948 | ||||
Bond payable (including bond payable | 1,836,362 | 1,492,044 | 223,644 | ||||
Income tax payable (including income | 178,213 | 123,480 | 18,509 | ||||
Contract liabilities (including contract | 425,954 | 344,941 | 51,704 | ||||
Refund liabilities (including refund | 32,362 | 19,384 | 2,906 | ||||
Operating lease liabilities (including | 123,215 | 112,260 | 16,827 | ||||
Amounts due to affected entities | 333,270 | - | - | ||||
Total current liabilities | 4,031,022 | 3,434,608 | 514,818 | ||||
Contract liabilities – non current | 1,421 | 2,419 | 363 | ||||
Deferred tax liabilities, net (including | 26,744 | 23,006 | 3,448 | ||||
Other non-current liabilities due to | 13,154 | 11,019 | 1,651 | ||||
Long term loan (including long term | 616 | 631 | 95 | ||||
Operating lease liabilities – non current | 1,752,667 | 1,592,818 | 238,750 | ||||
Total non-current liabilities | 1,794,602 | 1,629,893 | 244,307 | ||||
TOTAL LIABILITIES | 5,825,624 | 5,064,501 | 759,125 | ||||
EQUITY | |||||||
Share capital | 8 | 8 | 1 | ||||
Additional paid-in capital | 1,727,020 | 1,693,358 | 253,820 | ||||
Statutory reserves | 2,531 | 14,873 | 2,229 | ||||
Accumulated other comprehensive | 168,324 | 74,435 | 11,158 | ||||
Accumulated retained earnings | 648,944 | 578,335 | 86,687 | ||||
Shareholders' equity | 2,546,827 | 2,361,009 | 353,895 | ||||
Non-controlling interests | 260,049 | 218,879 | 32,808 | ||||
Total equity | 2,806,876 | 2,579,888 | 386,703 | ||||
TOTAL LIABILITIES AND EQUITY | 8,632,500 | 7,644,389 | 1,145,828 | ||||
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, | ||||||||||
2021 | 2022 | 2021 | 2022 | ||||||||
RMB | RMB | USD | RMB | RMB | USD | ||||||
Continuing operations | |||||||||||
Revenue | 362,446 | 437,549 | 65,585 | 1,081,759 | 1,311,054 | 196,516 | |||||
Cost of revenue | (310,007) | (302,158) | (45,291) | (908,562) | (916,742) | (137,412) | |||||
Gross profit | 52,439 | 135,391 | 20,294 | 173,197 | 394,312 | 59,104 | |||||
Selling, general and administrative expenses | (129,180) | (117,122) | (17,556) | (377,374) | (402,068) | (60,267) | |||||
Other operating income | 6,625 | 1,002 | 150 | 18,461 | 4,087 | 613 | |||||
Operating (loss)/income | (70,116) | 19,271 | 2,888 | (185,716) | (3,669) | (550) | |||||
Interest expense, net | (51,554) | (26,364) | (3,952) | (122,363) | (110,747) | (16,600) | |||||
Investment income | 39,321 | 28,155 | 4,220 | 87,406 | 107,109 | 16,055 | |||||
Other expenses | (948) | 926 | 139 | (7,102) | (5,229) | (785) | |||||
Loss before income taxes and share of equity in loss of | (83,297) | 21,988 | 3,295 | (227,775) | (12,536) | (1,880) | |||||
Income tax expense | (10,786) | (28,949) | (4,339) | (27,512) | (47,252) | (7,083) | |||||
Share of equity in loss of unconsolidated affiliates | (156) | (121) | (18) | (608) | (232) | (35) | |||||
Loss from continuing operations | (94,239) | (7,082) | (1,062) | (255,895) | (60,020) | (8,998) | |||||
Discontinued operations | |||||||||||
Income from discontinued operations, net of tax | 258,143 | - | - | 568,284 | - | - | |||||
Net income/(loss) | 163,904 | (7,082) | (1,062) | 312,389 | (60,020) | (8,998) | |||||
Net (loss)/income attributable to non-controlling interests | |||||||||||
Continuing operations | (7,621) | 1,857 | 278 | (1,253) | (1,753) | (264) | |||||
Discontinued operations | 1,173 | - | - | 1,696 | - | - | |||||
Net (loss)/ income attributable to ordinary shareholders | |||||||||||
Continuing operations | (86,618) | (8,939) | (1,340) | (254,642) | (58,267) | (8,734) | |||||
Discontinued operations | 256,970 | - | - | 566,588 | - | - | |||||
Net (loss)/earnings per share attributable to | |||||||||||
—Basic | |||||||||||
Continuing operations | (0.73) | (0.08) | (0.01) | (2.13) | (0.49) | (0.07) | |||||
Discontinued operations | 2.16 | - | - | 4.74 | - | - | |||||
—Diluted | |||||||||||
Continuing operations | (0.73) | (0.08) | (0.01) | (2.13) | (0.49) | (0.07) | |||||
Discontinued operations | 2.16 | - | - | 4.74 | - | - | |||||
Weighted average shares used in | |||||||||||
—Basic | |||||||||||
Continuing operations | 119,162,036 | 118,669,795 | 118,669,795 | 119,300,151 | 118,706,830 | 118,706,830 | |||||
Discontinued operations | 119,162,036 | - | - | 119,300,151 | - | - | |||||
—Diluted | |||||||||||
Continuing operations | 119,162,036 | 118,669,795 | 118,669,795 | 119,300,151 | 118,706,830 | 118,706,830 | |||||
Discontinued operations | 119,162,036 | - | - | 119,300,151 | - | - | |||||
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, | ||||||||||
2021 | 2022 | 2021 | 2022 | ||||||||
RMB | RMB | USD | RMB | RMB | USD | ||||||
Net cash (used in)/ generated from operating | (200,367) | 321,060 | 48,124 | (143,962) | (64,556) | (9,676) | |||||
Net cash used in investing activities | (307,578) | (20,750) | (3,110) | (2,520,180) | (1,202,394) | (180,228) | |||||
Net cash generated from/(used in) financing | 118,089 | (479,033) | (71,803) | 22,168 | 1,102,803 | 165,301 | |||||
Effect of exchange rate changes on cash | (40,493) | 57,693 | 8,647 | (113,873) | 20,574 | 3,082 | |||||
Net change in cash and cash equivalents, | (430,349) | (121,030) | (18,142) | (2,755,847) | (143,573) | (21,521) | |||||
Cash and cash equivalents, and restricted cash | 2,098,439 | 1,492,620 | 223,731 | 4,423,937 | 1,515,163 | 227,110 | |||||
Cash and cash equivalents, and restricted cash | 1,668,090 | 1,371,590 | 205,589 | 1,668,090 | 1,371,590 | 205,589 | |||||
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, | |||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||
RMB | RMB | USD | RMB | RMB | USD | |||||||
Gross profit from continuing operations | 52,439 | 135,391 | 20,294 | 173,197 | 394,312 | 59,104 | ||||||
Add: Amortization of intangible assets | 4,174 | 4,523 | 678 | 11,459 | 13,883 | 2,081 | ||||||
Adjusted gross profit from continuing operations | 56,613 | 139,914 | 20,972 | 184,656 | 408,195 | 61,185 | ||||||
Operating (loss)/income from continuing operations | (70,116) | 19,271 | 2,888 | (185,716) | (3,669) | (550) | ||||||
Add: Share-based compensation expense | 662 | - | - | 2,032 | (816) | (122) | ||||||
Add: Amortization of intangible assets | 4,174 | 4,523 | 678 | 11,459 | 13,883 | 2,081 | ||||||
Adjusted operating (loss)/income from continuing | (65,280) | 23,794 | 3,566 | (172,225) | 9,398 | 1,409 | ||||||
Net income/(loss) | 163,904 | (7,082) | (1,062) | 312,389 | (60,020) | (8,998) | ||||||
Add: Share-based compensation expense | 662 | - | - | 2,032 | (816) | (122) | ||||||
Add: Amortization of intangible assets | 4,174 | 4,523 | 678 | 11,459 | 13,883 | 2,081 | ||||||
Add: Tax effect of amortization of intangible assets | (838) | (958) | (144) | (2,314) | (2,953) | (443) | ||||||
Less: Income from discontinued operations, net of tax | 258,143 | - | - | 568,284 | - | - | ||||||
Adjusted net loss | (90,241) | (3,517) | (528) | (244,718) | (49,906) | (7,482) | ||||||
Net income/(loss) attributable to ordinary shareholders | 170,352 | (8,939) | (1,340) | 311,946 | (58,267) | (8,734) | ||||||
Add: Share-based compensation expense | 662 | - | - | 2,032 | (816) | (122) | ||||||
Add: Amortization of intangible assets | 4,174 | 4,523 | 678 | 11,459 | 13,883 | 2,081 | ||||||
Add: Tax effect of amortization of intangible assets | (838) | (958) | (144) | (2,314) | (2,953) | (443) | ||||||
Less: Income from discontinued operations, net of tax | 256,970 | - | - | 566,588 | - | - | ||||||
Adjusted net loss attributable to ordinary shareholders | (82,620) | (5,374) | (806) | (243,465) | (48,153) | (7,218) | ||||||
Net income/(loss) | 163,904 | (7,082) | (1,062) | 312,389 | (60,020) | (8,998) | ||||||
Add: Interest expense, net | 51,554 | 26,364 | 3,952 | 122,363 | 110,747 | 16,600 | ||||||
Add: Income tax expense | 10,786 | 28,949 | 4,339 | 27,512 | 47,252 | 7,083 | ||||||
Add: Depreciation and amortization | 34,442 | 20,760 | 3,112 | 103,522 | 99,492 | 14,913 | ||||||
Add: Share-based compensation expense | 662 | - | - | 2,032 | (816) | (122) | ||||||
Less: Income from discontinued operations, net of tax | 258,143 | - | - | 568,284 | - | - | ||||||
Adjusted EBITDA | 3,205 | 68,991 | 10,341 | (466) | 196,655 | 29,476 | ||||||
Selling, general and administrative expenses from | 129,180 | 117,122 | 17,556 | 377,374 | 402,068 | 60,267 | ||||||
Less: Share-based compensation expense | 662 | - | - | 2,032 | (816) | (122) | ||||||
Adjusted selling, general and administrative expenses | 128,518 | 117,122 | 17,556 | 375,342 | 402,884 | 60,389 | ||||||
Weighted average shares used | ||||||||||||
—Basic and Diluted | ||||||||||||
Continuing operations | 119,162,036 | 118,669,795 | 118,669,795 | 119,300,151 | 118,706,830 | 118,706,830 | ||||||
Discontinued operations | 119,162,036 | - | - | 119,300,151 | - | - | ||||||
Adjusted net loss per share attributable | ||||||||||||
—Basic | (0.69) | (0.05) | (0.01) | (2.04) | (0.41) | (0.06) | ||||||
—Diluted | (0.69) | (0.05) | (0.01) | (2.04) | (0.41) | (0.06) | ||||||
View original content:https://www.prnewswire.com/news-releases/bright-scholar-announces-unaudited-financial-results-for-the-third-fiscal-quarter-of-fiscal-2022-301599955.html
SOURCE Bright Scholar Education Holdings Ltd.
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