Four Seasons Education Reports First Half of Fiscal Year 2024 Unaudited Financial Results
- Revenue increased by 347.5%
- Gross profit increased by 650.1%
- Net income was RMB5.7 million (US$0.8 million)
- None.
Financial and Operational Highlights for the First Half of Fiscal Year 2024
- Revenue increased by
347.5% toRMB61.8 million (US ), compared to$8.5 million RMB13.8 million in the same period of last year. - Gross profit increased by
650.1% toRMB26.7 million (US ) from$3.7 million RMB3.6 million in the same period of last year. - Operating income was
RMB0.9 million (US ), compared to an operating loss of$0.1 million RMB25.3 million in the same period of last year. - Adjusted operating income(1) (non-GAAP) was
RMB2.7 million (US ), as compared to an adjusted operating loss of$0.4 million RMB23.3 million in the same period of last year. - Net income was
RMB5.7 million (US ), compared to a net loss of$0.8 million RMB23.9 million in the same period of last year. - Adjusted net income(2) (non-GAAP) was
RMB6.2 million (US ), as compared to an adjusted net loss of$0.9 million RMB18.4 million in the same period of last year. - Basic and diluted net income per American Depositary Share ("ADS") attributable to ordinary shareholders were both
RMB2.70 (US ), as compared to a net loss of$0.37 RMB11.23 in the same period of last year. Each ADS represents ten ordinary shares. - Adjusted basic and diluted net income per ADS attributable to ordinary shareholders(3) (non-GAAP) were both
RMB2.93 (US ), compared to a net loss of$0.41 RMB8.65 in the same period of last year.
(1) Adjusted operating income/loss is defined as operating income/loss excluding share-based compensation expenses. |
(2) Adjusted net income/loss is defined as net income/loss excluding share-based compensation expenses and fair value change of investments. |
(3) Adjusted basic/diluted net income/loss per ADS attributable to ordinary shareholders is defined as basic/diluted net income/loss per ADS attributable to ordinary shareholders excluding share-based compensation expenses per ADS attributable to ordinary shareholders and fair value change of investments per ADS attributable to ordinary shareholders. |
For more information on these adjusted financial measures, please see the section captioned under "About Non-GAAP Financial Measures" and the tables captioned "Reconciliation of GAAP and non-GAAP Results" set forth at the end of this release. |
Ms. Yi (Joanne) Zuo, Chief Executive Officer and Director of Four Seasons Education said, "We experienced a strong recovery in the six months ended August 31, 2023, evidenced by a triple-digit percentage growth in total revenues which drove our gross margin to approximately
"Excitingly, we experienced rapid growth in both our domestic and outbound tourism business for all ages. Furthermore, beyond the regular travel agency business, we capitalized on our abundant study resources and keen industry sense to roll out a broad array of themed enrichment learning trip programs for students. We are also actively developing and providing tourism programs tailored for senior adults. Meanwhile, operations and construction at our proprietary study camps are progressing well. We have been steadily expanding the service offerings of our study camps in operation and construction at our new camp in
"Furthermore, we witnessed encouraging progress in advancing our non-academic tutoring programs as we maintained our strategic focus on enriching and diversifying our non-academic offerings to meet learning needs across broader age groups. Moreover, we further expanded our footprint in school-based tutoring product solutions and training programs for teachers. Leveraging our in-depth expertise and experience in the education sector, we have recently embarked on our overseas learning preparation and consulting businesses, with the goal of providing our customer groups and communities with more comprehensive services.
"Moving forward, we plan to further explore new business opportunities that align with relevant rules and regulations in the tourism and education-related services sectors. As we navigate market dynamics and cycles, we remain committed to advancing our strategy to develop our business and increase shareholder value by further enriching our service offerings, diversifying our customer base and investing in our core capabilities," Ms. Zuo concluded.
First Half Fiscal Year 2024 Financial Results
Revenue increased by
Cost of revenue increased by
Gross profit increased by
General and administrative expenses decreased by
Sales and marketing expenses decreased by
Operating income was
Other income, net was
Income tax expense was
Net income was
Basic and diluted net income per ADS attributable to ordinary shareholders in the first half of fiscal year 2024 were both
Cash and cash equivalents. As of August 31, 2023, the Company had cash and cash equivalents of
About Four Seasons Education (Cayman) Inc.
Four Seasons Education (Cayman) Inc. is a service provider of both tourism and education-related services in
About Non-GAAP Financial Measures
In evaluating the Company's business, the Company considers and uses certain non-GAAP measures, including primarily adjusted operating income/loss, adjusted net income/loss and adjusted basic and diluted net income/loss per ADS attributable to ordinary shareholders, as supplemental measures to review and assess the Company's operating performance. Adjusted operating income/loss is defined as operating income/loss excluding share-based compensation expenses. Adjusted net income/loss is defined as net income/loss excluding share-based compensation expenses and fair value change of investments (net of tax effect). Adjusted basic/ diluted net income/loss per ADS attributable to ordinary shareholders is defined as basic/diluted net income/loss per ADS attributable to ordinary shareholders excluding share-based compensation expenses per ADS attributable to ordinary shareholders and fair value change of investments measured at fair value per ADS attributable to ordinary shareholders. 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
The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses, fair value change of investments measured at fair value and impairment loss on intangible assets and goodwill (where applicable) that may not be indicative of the Company's operating performance from a cash perspective. The Company believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance and liquidity. The Company also believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in the Company's financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges and fair value change of investments measured at fair value (where applicable) that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. The Company compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This press release contains statements of a forward-looking nature. These statements, including the statements relating to the Company's future financial and operating results, are made under the "safe harbor" provisions of the
For investor and media inquiries, please contact:
In
Four Seasons Education (Cayman) Inc.
Olivia Li
Tel: +86 (21) 6317-6177
E-mail: IR@fsesa.com
The Piacente Group, Inc.
Jenny Cai
Tel: +86-10-6508-0677
E-mail: fourseasons@tpg-ir.com
In
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: fourseasons@tpg-ir.com
FOUR SEASONS EDUCATION (CAYMAN) INC. | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(in thousands, except share data and per share data) | ||||||
As of | ||||||
February 28, | August 31, | August 31, | ||||
2023 | 2023 | 2023 | ||||
Unaudited | Unaudited | |||||
RMB | RMB | USD | ||||
Current assets | ||||||
Cash and cash equivalents | 175,696 | 221,191 | 30,475 | |||
Accounts receivable and contract assets | 887 | 6,217 | 857 | |||
Other receivables, deposits and other assets | 7,306 | 8,571 | 1,181 | |||
Amounts due from related parties, net | 11,127 | 10,412 | 1,435 | |||
Short-term investments | 24,332 | - | - | |||
Short-term investments under fair value | 156,639 | 136,645 | 18,826 | |||
Long-term investments under fair value – current | 135,201 | 139,773 | 19,257 | |||
Total current assets | 511,188 | 522,809 | 72,031 | |||
Non-current assets | ||||||
Restricted cash | 1,362 | 1,652 | 228 | |||
Property and equipment, net | 13,979 | 25,357 | 3,494 | |||
Operating lease right-of-use assets | 29,379 | 28,468 | 3,922 | |||
Intangible assets, net | 2,476 | 2,087 | 288 | |||
Goodwill | - | 1,125 | 155 | |||
Deferred tax assets | 601 | 881 | 121 | |||
Long-term investment | 27,500 | 36,500 | 5,029 | |||
Long-term investment under fair value – non-current | 13,583 | 14,124 | 1,946 | |||
Other non-current assets | 972 | 956 | 132 | |||
Total non-current assets | 89,852 | 111,150 | 15,315 | |||
TOTAL ASSETS | 601,040 | 633,959 | 87,346 | |||
Current liabilities | ||||||
Amounts due to related parties | 867 | 2,124 | 293 | |||
Accrued expenses and other current liabilities | 59,542 | 65,587 | 9,036 | |||
Operating lease liabilities – current | 2,531 | 1,768 | 244 | |||
Income tax payable | 17,171 | 17,549 | 2,418 | |||
Deferred revenue | 7,269 | 12,893 | 1,776 | |||
Total current liabilities | 87,380 | 99,921 | 13,767 |
FOUR SEASONS EDUCATION (CAYMAN) INC. | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(in thousands, except share data and per share data) | ||||||
As of | ||||||
February 28, | August 31, | August 31, | ||||
2023 | 2023 | 2023 | ||||
Unaudited | Unaudited | |||||
RMB | RMB | USD | ||||
Non-current liabilities | ||||||
Deferred tax liabilities | 575 | 575 | 79 | |||
Operating lease liabilities – non-current | 1,195 | 1,502 | 207 | |||
Total non-current liabilities | 1,770 | 2,077 | 286 | |||
TOTAL LIABILITIES | 89,150 | 101,998 | 14,053 | |||
EQUITY | ||||||
Total equity | 511,890 | 531,961 | 73,293 | |||
TOTAL LIABILITIES AND EQUITY | 601,040 | 633,959 | 87,346 |
FOUR SEASONS EDUCATION (CAYMAN) INC. | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
(in thousands, except share data and per share data) | ||||||
Six Months Ended August 31, | ||||||
2022 | 2023 | 2023 | ||||
RMB | RMB | USD | ||||
Revenue | ||||||
-- Revenue from third parties | 9,899 | 60,718 | 8,365 | |||
-- Revenue from related parties | 3,917 | 1,113 | 153 | |||
Total revenue | 13,816 | 61,831 | 8,518 | |||
Cost of revenue | (10,258) | (35,143) | (4,842) | |||
Gross profit | 3,558 | 26,688 | 3,676 | |||
General and administrative expenses | (26,343) | (23,549) | (3,244) | |||
Sales and marketing expenses | (2,526) | (2,244) | (309) | |||
Operating income (loss) | (25,311) | 895 | 123 | |||
Subsidy income | 1,238 | 49 | 7 | |||
Interest income, net | 377 | 2,224 | 306 | |||
Other income/ (expenses), net | (799) | 2,698 | 372 | |||
Income (loss) before income taxes | (24,495) | 5,866 | 808 | |||
Income tax benefit/ (expense) | 642 | (154) | (21) | |||
Net income (loss) | (23,853) | 5,712 | 787 | |||
Net income (loss) attributable to non-controlling interest | (1,940) | 664 | 91 | |||
Net income (loss) attributable to Four Seasons Education (Cayman) Inc. | (21,913) | 5,048 | 696 | |||
Net income (loss) per ordinary share: | ||||||
Basic | (1.03) | 0.24 | 0.03 | |||
Diluted | (1.03) | 0.24 | 0.03 | |||
Weighted average shares used in calculating net income (loss) per ordinary | ||||||
Basic | 21,238,806 | 21,189,215 | 21,189,215 | |||
Diluted | 21,238,806 | 21,189,215 | 21,189,215 |
FOUR SEASONS EDUCATION (CAYMAN) INC. | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||
(in thousands, except share data and per share data) | ||||||
Six Months Ended August 31, | ||||||
2022 | 2023 | 2023 | ||||
RMB | RMB | USD | ||||
Net income (loss) | (23,853) | 5,712 | 787 | |||
Other comprehensive income, net of tax of nil | ||||||
Foreign currency translation adjustments | 34,317 | 1,641 | 226 | |||
Comprehensive income | 10,464 | 7,353 | 1,013 | |||
Less: Comprehensive income (loss) attributable to non-controlling interest | (1,940) | 664 | 91 | |||
Comprehensive income attributable to Four Seasons Education (Cayman) Inc. | 12,404 | 6,689 | 922 |
FOUR SEASONS EDUCATION (CAYMAN) INC. | ||||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS | ||||||
(in thousands, except share data and per share data) | ||||||
Six Months Ended August 31, | ||||||
2022 | 2023 | 2023 | ||||
RMB | RMB | USD | ||||
Operating income (loss) | (25,311) | 895 | 123 | |||
Add: share-based compensation expenses | 2,012 | 1,800 | 248 | |||
Adjusted operating income (loss) (non-GAAP) | (23,299) | 2,695 | 371 | |||
Net income (loss) | (23,853) | 5,712 | 787 | |||
Add: share-based compensation expenses (net of tax effect of nil) | 2,012 | 1,800 | 248 | |||
Add: fair value change of investments, excluding foreign currency | 3,471 | (1,304) | (180) | |||
Adjusted net income (loss) (non-GAAP) | (18,370) | 6,208 | 855 | |||
Basic net income (loss) per ADS attributable to ordinary shareholders | (11.23) | 2.70 | 0.37 | |||
Add: share-based compensation expenses per ADS attributable to | 0.95 | 0.85 | 0.12 | |||
Add: fair value change of investments per ADS attributable to | 1.63 | (0.62) | (0.08) | |||
Adjusted basic net income (loss) per ADS attributable to | (8.65) | 2.93 | 0.41 | |||
Diluted net income (loss) per ADS attributable to | (11.23) | 2.70 | 0.37 | |||
Add: share-based compensation expenses per ADS attributable to | 0.95 | 0.85 | 0.12 | |||
Add: fair value change of investments per ADS attributable to | 1.63 | (0.62) | (0.08) | |||
Adjusted diluted net income (loss) per ADS attributable to | (8.65) | 2.93 | 0.41 | |||
Weighted average ADSs used in calculating earnings per ADS | ||||||
Basic | 2,123,881 | 2,118,922 | 2,118,922 | |||
Diluted | 2,123,881 | 2,118,922 | 2,118,922 |
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SOURCE Four Seasons Education Inc.
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