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TAL Education Group Announces Unaudited Financial Results for the First Fiscal Quarter Ended May 31, 2024

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TAL Education Group (NYSE: TAL), a smart learning solutions provider in China, announced its unaudited financial results for the first fiscal quarter ended May 31, 2024. Key highlights include:

Net revenues of US$414.2 million, up 50.4% from the prior year's US$275.4 million. Loss from operations was US$17.3 million, a significant improvement from the US$57.8 million loss in the prior year. On a Non-GAAP basis, income from operations was US$0.9 million, compared to a US$32.3 million loss previously. Net income attributable to TAL was US$11.4 million, shifting from a net loss of US$45.0 million. Non-GAAP net income was US$29.6 million, compared to a US$19.5 million loss. Basic and diluted net income per ADS was US$0.02, while non-GAAP basic and diluted net income per ADS was US$0.05.

Cash, cash equivalents, and short-term investments totaled US$3,418.6 million, up from US$3,303.3 million as of February 29, 2024. Deferred revenue was US$641.9 million, an increase from US$428.3 million.

TAL Education Group (NYSE: TAL), un fornitore di soluzioni di apprendimento intelligente in Cina, ha annunciato i suoi risultati finanziari non auditati per il primo trimestre fiscale chiuso il 31 maggio 2024. I punti salienti includono:

Ricavi netti di 414,2 milioni di dollari USA, in aumento del 50,4% rispetto ai 275,4 milioni di dollari dell'anno precedente. Perdita operativa di 17,3 milioni di dollari USA, con un significativo miglioramento rispetto alla perdita di 57,8 milioni di dollari dell'anno precedente. Su base Non-GAAP, il reddito operativo è stato di 0,9 milioni di dollari USA, rispetto a una perdita di 32,3 milioni di dollari in precedenza. Utile netto attribuibile a TAL è stato di 11,4 milioni di dollari USA, passando da una perdita netta di 45,0 milioni di dollari. L'utile netto Non-GAAP è stato di 29,6 milioni di dollari, rispetto a una perdita di 19,5 milioni di dollari. L'utile netto per ADS di base e diluito è stato di 0,02 dollari USA, mentre l'utile netto di base e diluito Non-GAAP per ADS è stato di 0,05 dollari USA.

Liquidità, equivalenti di liquidità e investimenti a breve termine hanno totalizzato 3.418,6 milioni di dollari USA, in aumento rispetto ai 3.303,3 milioni di dollari al 29 febbraio 2024. I ricavi differiti ammontavano a 641,9 milioni di dollari USA, in aumento rispetto ai 428,3 milioni di dollari.

TAL Education Group (NYSE: TAL), un proveedor de soluciones de aprendizaje inteligente en China, anunció sus resultados financieros no auditados para el primer trimestre fiscal que terminó el 31 de mayo de 2024. Los aspectos destacados incluyen:

Ingresos netos de 414,2 millones de dólares estadounidenses, un aumento del 50,4% con respecto a los 275,4 millones de dólares del año anterior. Pérdida de operaciones de 17,3 millones de dólares estadounidenses, una mejora significativa respecto a la pérdida de 57,8 millones de dólares del año anterior. En una base Non-GAAP, el ingreso de operaciones fue de 0,9 millones de dólares estadounidenses, comparado con una pérdida de 32,3 millones de dólares previamente. Ingreso neto atribuible a TAL fue de 11,4 millones de dólares estadounidenses, cambiando de una pérdida neta de 45,0 millones de dólares. El ingreso neto Non-GAAP fue de 29,6 millones de dólares, en comparación con una pérdida de 19,5 millones de dólares. El ingreso neto básico y diluido por ADS fue de 0,02 dólares estadounidenses, mientras que el ingreso neto básico y diluido Non-GAAP por ADS fue de 0,05 dólares estadounidenses.

Efectivo, equivalentes de efectivo e inversiones a corto plazo totalizaron 3.418,6 millones de dólares estadounidenses, un aumento desde los 3.303,3 millones de dólares al 29 de febrero de 2024. Los ingresos diferidos fueron de 641,9 millones de dólares, un incremento desde los 428,3 millones de dólares.

TAL Education Group (NYSE: TAL), 중국의 스마트 학습 솔루션 제공업체, 2024년 5월 31일 마감된 첫 분기 미감사 재무결과를 발표했습니다. 주요 사항은 다음과 같습니다:

순수익4억 1,420만 달러로, 지난해의 2억 7,540만 달러에서 50.4% 증가했습니다. 영업 손실1,730만 달러로, 지난해의 5,780만 달러 손실에서 상당한 개선을 보였습니다. 비GAAP 기준으로, 영업 수익은 90만 달러였으며, 이전의 3,230만 달러 손실에서 개선되었습니다. TAL에 귀속된 순이익1,140만 달러로, 4,500만 달러의 순손실에서 전환되었습니다. 비GAAP 순이익은 2,960만 달러로, 1,950만 달러의 손실에서 변화했습니다. 기본 및 희석된 ADS당 순이익은 0.02달러였고, 비GAAP 기본 및 희석된 ADS당 순이익은 0.05달러였습니다.

현금, 현금성 자산 및 단기 투자 총액은 34억 1,860만 달러로, 2024년 2월 29일의 33억 3,030만 달러에서 증가했습니다. 이연 수익은 6억 4,190만 달러로, 4억 2,830만 달러에서 증가했습니다.

TAL Education Group (NYSE: TAL), un fournisseur de solutions d'apprentissage intelligentes en Chine, a annoncé ses résultats financiers non audités pour le premier trimestre fiscal clos le 31 mai 2024. Les points clés comprennent :

Chiffre d'affaires net de 414,2 millions de dollars, en hausse de 50,4 % par rapport à 275,4 millions de dollars l'année précédente. Perte d'exploitation de 17,3 millions de dollars, une amélioration significative par rapport à la perte de 57,8 millions de dollars de l'année précédente. Sur une base Non-GAAP, le résultat d'exploitation était de 0,9 million de dollars, contre une perte de 32,3 millions de dollars précédemment. Résultat net attribuable à TAL de 11,4 millions de dollars, passant d'une perte nette de 45,0 millions de dollars. Le résultat net Non-GAAP était de 29,6 millions de dollars, contre une perte de 19,5 millions de dollars. Le résultat net de base et dilué par ADS était de 0,02 dollar, tandis que le résultat net de base et dilué Non-GAAP par ADS s'élevait à 0,05 dollar.

Les liquidités, équivalents de liquidités et investissements à court terme ont totalisé 3 418,6 millions de dollars, en hausse par rapport à 3 303,3 millions de dollars au 29 février 2024. Les revenus différés s'élevaient à 641,9 millions de dollars, contre 428,3 millions de dollars précédemment.

TAL Education Group (NYSE: TAL), ein Anbieter von intelligenten Lernlösungen in China, hat seine unauditierten finanziellen Ergebnisse für das erste Fiskalquartal zum 31. Mai 2024 bekannt gegeben. Die wichtigsten Punkte sind:

Nettoumsätze in Höhe von 414,2 Millionen US-Dollar, was einer Steigerung von 50,4 % im Vergleich zu 275,4 Millionen US-Dollar im Vorjahr entspricht. Betriebsverlust betrug 17,3 Millionen US-Dollar, eine deutliche Verbesserung im Vergleich zu einem Verlust von 57,8 Millionen US-Dollar im Vorjahr. Auf Non-GAAP-Basis betrug das Betriebsergebnis 0,9 Millionen US-Dollar, verglichen mit einem Verlust von 32,3 Millionen US-Dollar zuvor. Jahresüberschuss von TAL betrug 11,4 Millionen US-Dollar, im Vergleich zu einem Nettoverlust von 45,0 Millionen US-Dollar. Der Non-GAAP Nettogewinn betrug 29,6 Millionen US-Dollar, im Vergleich zu einem Verlust von 19,5 Millionen US-Dollar. Der Grund- und verwässerte Nettogewinn pro ADS betrug 0,02 US-Dollar, während der Non-GAAP Grund- und verwässerte Nettogewinn pro ADS 0,05 US-Dollar betrug.

Flüssige Mittel, flüssige Mitteläquivalente und kurzfristige Investitionen totalisierten 3.418,6 Millionen US-Dollar, ein Anstieg von 3.303,3 Millionen US-Dollar am 29. Februar 2024. Die aufgeschobenen Einnahmen betrugen 641,9 Millionen US-Dollar, ein Anstieg von 428,3 Millionen US-Dollar.

Positive
  • Net revenues increased by 50.4% to US$414.2 million.
  • Loss from operations reduced to US$17.3 million from US$57.8 million.
  • Net income attributable to TAL was US$11.4 million, compared to a net loss of US$45.0 million.
  • Non-GAAP net income attributable to TAL was US$29.6 million, compared to a US$19.5 million loss.
  • Cash, cash equivalents, and short-term investments increased to US$3,418.6 million.
Negative
  • Operating costs and expenses increased by 26.3% to US$432.1 million.
  • Cost of revenues increased by 43.4% to US$200.0 million.
  • Selling and marketing expenses increased by 25.4% to US$122.4 million.

Insights

TAL Education Group's Q1 FY2025 results show significant improvement, with a 50.4% year-over-year increase in net revenues to $414.2 million. The company has successfully turned around its bottom line, reporting a net income of $11.4 million compared to a net loss of $45.0 million in the same period last year. This remarkable 125.3% swing indicates effective cost management and operational efficiency.

Key positives include:

  • Gross margin improvement from 49.3% to 51.7%, suggesting better pricing power or cost control
  • Reduction in operating loss by 70% year-over-year
  • Strong cash position with $3.4 billion in cash and short-term investments
  • Significant increase in deferred revenue, up 49.9% from the previous quarter, indicating strong future revenue potential

However, investors should note the 26.3% increase in operating costs and expenses, which outpaced revenue growth. This could pressure margins if not managed carefully. The company's focus on product quality and operational efficiency appears to be paying off, but sustained profitability will be key to watch in coming quarters.

TAL Education's strong Q1 performance signals a potential turnaround in China's education sector following regulatory challenges. The 50.4% revenue growth suggests robust demand for smart learning solutions, possibly driven by the post-pandemic emphasis on digital education.

Key market insights:

  • The 49.9% quarter-over-quarter increase in deferred revenue indicates strong forward bookings and customer confidence
  • The 25.4% increase in selling and marketing expenses suggests aggressive customer acquisition efforts
  • The modest 4.5% increase in general and administrative expenses shows good cost discipline

The company's ability to grow revenue while improving profitability is particularly impressive given the challenging regulatory environment for education companies in China. This performance may indicate that TAL has successfully pivoted its business model to align with new regulations while meeting market demands.

Investors should monitor the sustainability of this growth trajectory and any potential regulatory developments that could impact the sector. The company's focus on product quality and operational efficiency appears well-aligned with current market trends favoring high-quality, technology-driven educational solutions.

BEIJING, Aug. 1, 2024 /PRNewswire/ -- TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a smart learning solutions provider in China, today announced its unaudited financial results for the first quarter of fiscal year 2025 ended May 31, 2024.

Highlights for the First Quarter of Fiscal Year 2025

  • Net revenues were US$414.2 million, compared to net revenues of US$275.4 million in the same period of the prior year.
  • Loss from operations was US$17.3 million, compared to loss from operations of US$57.8 million in the same period of the prior year.
  • Non-GAAP income from operations, which excluded share-based compensation expenses, was US$0.9 million, compared to non-GAAP loss from operations of US$32.3 million in the same period of the prior year.
  • Net income attributable to TAL was US$11.4 million, compared to net loss attributable to TAL of US$45.0 million in the same period of the prior year.
  • Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$29.6 million, compared to non-GAAP net loss attributable to TAL of US$19.5 million in the same period of the prior year.
  • Basic and diluted net income per American Depositary Share ("ADS") were both US$0.02. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.05. Three ADSs represent one Class A common share.
  • Cash, cash equivalents and short-term investments totaled US$3,418.6 million as of May 31, 2024, compared to US$3,303.3 million as of February 29, 2024.

 

Financial Data——First Quarter of Fiscal Year 2025
(In US$ thousands, except per ADS data and percentages)


Three Months Ended
May 31,


2023

2024

Pct. Change

Net revenues

275,440

414,187

50.4 %

Loss from operations

(57,773)

(17,330)

(70.0 %)

Non-GAAP (loss)/income from operations

(32,260)

876

(102.7 %)

Net (loss)/income attributable to TAL

(45,037)

11,402

(125.3 %)

Non-GAAP net (loss)/income attributable to
TAL

(19,524)

29,608

(251.6 %)

Net (loss)/income per ADS attributable to
TAL – basic

(0.07)

0.02

(126.5 %)

Net (loss)/income per ADS attributable to
TAL – diluted

(0.07)

0.02

(126.0 %)

Non-GAAP net (loss)/income per ADS
attributable to TAL – basic

(0.03)

0.05

(259.0 %)

Non-GAAP net (loss)/income per ADS
attributable to TAL – diluted

(0.03)

0.05

(256.0 %)

 

"In this quarter, our core focus remains on delivering quality products and managing our online and offline operational efficiency to serve learners effectively," said Alex Peng, TAL's President and Chief Financial Officer.

Mr. Peng added, "Looking forward, we will make ongoing investments to provide our users with quality learning experiences. Our product capabilities, combined with our operational efficiency, positions us to capitalize on market opportunities and deliver long-term value to our customers."

Financial Results for the First Quarter of Fiscal Year 2025

Net Revenues

In the first quarter of fiscal year 2025, TAL reported net revenues of US$414.2 million, representing a 50.4% increase from US$275.4 million in the first quarter of fiscal year 2024.

Operating Costs and Expenses

In the first quarter of fiscal year 2025, operating costs and expenses were US$432.1 million, representing a 26.3% increase from US$342.1 million in the first quarter of fiscal year 2024. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$413.9 million, representing a 30.7% increase from US$316.6 million in the first quarter of fiscal year 2024.

Cost of revenues increased by 43.4% to US$200.0 million from US$139.5 million in the first quarter of fiscal year 2024. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 44.2% to US$197.6 million, from US$137.1 million in the first quarter of fiscal year 2024.

Selling and marketing expenses increased by 25.4% to US$122.4 million from US$97.7 million in the first quarter of fiscal year 2024. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 30.8% to US$118.1 million, from US$90.2 million in the first quarter of fiscal year 2024.

General and administrative expenses increased by 4.5% to US$109.7 million from US$104.9 million in the first quarter of fiscal year 2024. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 10.0% to US$98.2 million, from US$89.2 million in the first quarter of fiscal year 2024.

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 28.6% to US$18.2 million in the first quarter of fiscal year 2025 from US$25.5 million in the same period of fiscal year 2024.

Gross Profit                                                                                                                                 

Gross profit increased by 57.6% to US$214.2 million from US$135.9 million in the first quarter of fiscal year 2024. The gross margin for the first quarter of fiscal year 2025 was 51.7%, compared to 49.3% in the same period of the prior year.

Loss from Operations

Loss from operations was US$17.3 million in the first quarter of fiscal year 2025, compared to loss from operations of US$57.8 million in the first quarter of fiscal year 2024. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$0.9 million, compared to Non-GAAP loss from operations of US$32.3 million in the same period of the prior year.

Other (Expense)/Income

Other income was US$13.2 million for the first quarter of fiscal year 2025, compared to other expense of US$6.8 million in the first quarter of fiscal year 2024.

Impairment Loss on Long-term Investments

Impairment loss on long-term investment was US$3.8 million for the first quarter of fiscal year 2025, compared to nil for the first quarter of fiscal year 2024.

Income Tax Expense

Income tax expense was US$2.3 million in the first quarter of fiscal year 2025, compared to US$3.5 million of income tax expense in the first quarter of fiscal year 2024.

Net (Loss)/Income Attributable to TAL Education Group

Net income attributable to TAL was US$11.4 million in the first quarter of fiscal year 2025, compared to net loss attributable to TAL of US$45.0 million in the first quarter of fiscal year 2024. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$29.6 million, compared to Non-GAAP net loss attributable to TAL of US$19.5 million in the first quarter of fiscal year 2024.

Basic and Diluted Net (Loss)/Income per ADS

Basic and diluted net income per ADS were both US$0.02 in the first quarter of fiscal year 2025. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.05 in the first quarter of fiscal year 2025.

Cash Flow 

Net cash provided by operating activities for the first quarter of fiscal year 2025 was US$246.8 million.

Cash, Cash Equivalents, and Short-Term Investments

As of May 31, 2024, the Company had US$2,222.6 million of cash and cash equivalents and US$1,196.0 million of short-term investments, compared to US$2,208.7 million of cash and cash equivalents and US$1,094.6 million of short-term investments as of February 29, 2024.

Deferred Revenue

As of May 31, 2024, the Company's deferred revenue balance was US$641.9 million, compared to US$428.3 million as of February 29, 2024.

Conference Call

The Company will host a conference call and live webcast to discuss its financial results for the first fiscal quarter of fiscal year 2025 ended May 31, 2024 at 8:00 a.m. Eastern Time on August 1, 2024 (8:00 p.m. Beijing time on August 1, 2024).

Please note that you will need to pre-register for conference call participation at https://register.vevent.com/register/BI0948a7548cbb4383b037c2d80666f8ec.

Upon registration, you will receive an email containing participant dial-in numbers and unique Direct Event Passcode. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.100tal.com/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, TAL Education Group's strategic and operational plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to continue to provide competitive learning services and products; the Company's ability to continue to recruit, train and retain talents; the Company's ability to improve the content of current course offerings and develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.

About TAL Education Group

TAL Education Group is a smart learning solutions provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life", which reflects our vision to promote top learning opportunities for students through both high-quality teaching and content, as well as leading edge application of technology in the education experience. TAL Education Group offers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China. Our ADSs trade on the New York Stock Exchange under the symbol "TAL".

About Non-GAAP Financial Measures

In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP operating costs and expenses, non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP (loss)/income from operations, non-GAAP net (loss)/income attributable to TAL, non-GAAP basic and non-GAAP diluted net (loss)/income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. 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 GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. TAL 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 TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. Management 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.

For further information, please contact:

Jackson Ding
Investor Relations
TAL Education Group
Tel: +86 10 5292 6669-8809
Email: ir@tal.com

 

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)



As of

February 29,
2024


As of

May 31,
2024

ASSETS








Current assets




   Cash and cash equivalents

$ 2,208,756


$ 2,222,591

Restricted cash-current

167,656


275,966

Short-term investments

1,094,593


1,195,981

    Inventory

68,328


80,984

Amounts due from related parties-current

343


376

    Income tax receivables

-


1,543

    Prepaid expenses and other current assets

159,498


153,159

Total current assets

3,699,174


3,930,600

    Restricted cash-non-current

81,064


79,865

    Property and equipment, net

405,319


438,670

    Deferred tax assets

4,620


4,938

    Rental deposits

16,947


18,523

    Intangible assets, net

1,988


1,637

    Land use right, net

189,049


186,862

    Amounts due from related parties-non-current

59


59

Long-term investments

284,266


279,852

Long-term prepayments and other non-current assets

14,359


21,600

Operating lease right-of-use assets

231,104


340,231

Total assets

$ 4,927,949


$ 5,302,837





LIABILITIES AND EQUITY








Current liabilities




Accounts payable

$ 127,321


$ 132,267

Deferred revenue-current

400,286


613,470

Amounts due to related parties-current

96


95

Accrued expenses and other current liabilities

491,911


519,899

Operating lease liabilities, current portion

62,604


72,269

Total current liabilities

1,082,218


1,338,000

Deferred revenue-non-current

27,993


28,438

Deferred tax liabilities

2,360


2,254

Operating lease liabilities, non-current portion

176,614


273,461

Total liabilities

1,289,185


1,642,153





Equity




Class A common shares

152


153

Class B common shares

49


49

Additional paid-in capital

4,256,957


4,275,160

Statutory reserve

165,138


165,033

Accumulated deficit

(694,270)


(682,763)

Accumulated other comprehensive loss

(65,928)


(73,659)

Total TAL Education Group's equity

3,662,098


3,683,973

Noncontrolling interests

(23,334)


(23,289)

Total equity

3,638,764


3,660,684

Total liabilities and equity

$ 4,927,949


$ 5,302,837

 

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars, except share, ADS, per share and per ADS data) 



       For the Three Months Ended

        May 31,



2023


2024

 

Net revenues


 

$ 275,440


 

$ 414,187

Cost of revenues (note 1)


139,513


200,008

Gross profit


135,927


214,179

Operating expenses (note 1)





  Selling and marketing


97,657


122,428

  General and administrative


104,923


109,682

Total operating expenses


202,580


232,110

Government subsidies


8,880


601

Loss from operations


(57,773)


(17,330)

Interest income


22,981


22,522

Other (expense)/income


(6,845)


13,151

Impairment loss on long-term investments


-


(3,767)

(Loss)/Income before income tax expense and

loss from equity method investments


(41,637)


14,576

Income tax expense


(3,519)


(2,295)

Loss from equity method investments


(71)


(985)

Net (loss)/income


$ (45,227)


$ 11,296

Add: Net loss attributable to noncontrolling interests


190


106

Total net (loss)/income attributable to TAL
    Education Group


$ (45,037)


$ 11,402

Net (loss)/income per common share





Basic


$ (0.21)


$ 0.06

Diluted


(0.21)


0.06

Net (loss)/income per ADS (note 2)





Basic


$ (0.07)


$ 0.02

Diluted


(0.07)


0.02

 

Weighted average shares used in calculating net
    (loss)/income per common share





   Basic


211,319,973


201,567,132

   Diluted


211,319,973


205,382,443


Note1: Share-based compensation expenses are included in the operating costs and expenses as follows:







For the Three Months


Ended May 31,



2023


2024

Cost of revenues


$ 2,409


$ 2,362

Selling and marketing expenses


7,428


4,375

General and administrative expenses


15,676


11,469

Total


$ 25,513


$ 18,206


Note 2: Three ADSs represent one Class A common Share. 

 

 

 

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE (LOSS)/INCOME  

(In thousands of U.S. dollars)





For the Three Months Ended

 May 31,



2023


2024







Net (loss)/income

$ (45,227)


$ 11,296


Other comprehensive loss, net of tax

(23,813)


(7,580)


Comprehensive (loss)/income

(69,040)


3,716


Add: Comprehensive income attributable to
   noncontrolling interests

(461)


(45)


Comprehensive (loss)/income attributable to 

TAL Education Group

$ (69,501)


$ 3,671


 

 

 

TAL EDUCATION GROUP

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

CASH FLOWS

(In thousands of U.S. dollars)



For the Three Months
Ended

May 31,


2023


2024

Net cash provided by operating activities

$ 125,516


$ 246,793

Net cash provided by/(used in) investing activities

160,915


(124,635)

Net cash (used in)/provided by financing activities

(151,237)


5

Effect of exchange rate changes

(4,510)


(1,217)





Net increase in cash, cash equivalents and restricted cash

130,684


120,946

Cash, cash equivalents and restricted cash at the beginning of
   period

2,294,907


2,457,476





Cash, cash equivalents and restricted cash at the end of period

$ 2,425,591


$ 2,578,422

 

 

 

TAL EDUCATION GROUP

Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures

(In thousands of U.S. dollars, except share, ADS, per share and per ADS data)





  For the Three Months 

   Ended May 31,



2023


2024







Cost of revenues

$ 139,513


$ 200,008


Share-based compensation expenses in cost of

  revenues

2,409


2,362


Non-GAAP cost of revenues

137,104


197,646







Selling and marketing expenses

97,657


122,428


Share-based compensation expenses in selling and

  marketing expenses

7,428


4,375


Non-GAAP selling and marketing expenses

90,229


118,053


 

General and administrative expenses

 

104,923


 

109,682


Share-based compensation expenses in general and

  administrative expenses

15,676


11,469


Non-GAAP general and administrative expenses

89,247


98,213







Operating costs and expenses

342,093


432,118


Share-based compensation expenses in operating

  costs and expenses

25,513


18,206


Non-GAAP operating costs and expenses

316,580


413,912







Loss from operations

(57,773)


(17,330)


Share based compensation expenses

25,513


18,206


Non-GAAP (loss)/income from operations (note 3)

(32,260)


876







Net (loss)/income attributable to TAL Education 
Group

(45,037)


11,402


Share based compensation expenses

25,513


18,206


Non-GAAP net (loss)/income attributable to 
TAL Education Group (note 3)

$ (19,524)


$ 29,608


 

Net (loss)/income per ADS


Basic

$ (0.07)


$ 0.02


Diluted

(0.07)


0.02


Non-GAAP Net (loss)/income per ADS 





Basic

$ (0.03)


$ 0.05


Diluted

(0.03)


0.05


ADSs used in calculating net (loss)/income per 
ADS





Basic

633,959,919


604,701,396


Diluted

633,959,919


616,147,329


ADSs used in calculating Non-GAAP net
(loss)/income per
 ADS





 Basic

633,959,919


604,701,396


 Diluted

633,959,919


616,147,329







Note 3: The tax effect of share-based compensation expenses was immaterial in the first quarter of fiscal year 2025.


 

Cision View original content:https://www.prnewswire.com/news-releases/tal-education-group-announces-unaudited-financial-results-for-the-first-fiscal-quarter-ended-may-31-2024-302212162.html

SOURCE TAL Education Group

FAQ

What were TAL Education Group's net revenues for Q1 FY 2025?

TAL's net revenues for Q1 FY 2025 were US$414.2 million, a 50.4% increase from the previous year.

What was TAL Education Group's net income for Q1 FY 2025?

Net income attributable to TAL for Q1 FY 2025 was US$11.4 million, compared to a net loss of US$45.0 million in the prior year.

How much did TAL Education Group's cash and investments total as of May 31, 2024?

As of May 31, 2024, TAL had cash, cash equivalents, and short-term investments totaling US$3,418.6 million.

What was TAL Education Group's non-GAAP net income for Q1 FY 2025?

Non-GAAP net income for Q1 FY 2025 was US$29.6 million, compared to a non-GAAP net loss of US$19.5 million in the prior year.

What were TAL Education Group's operating costs and expenses for Q1 FY 2025?

TAL's operating costs and expenses for Q1 FY 2025 were US$432.1 million, representing a 26.3% increase from the prior year.

TAL Education Group

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