Ahold Delhaize Usa providers firm Retail Organization Expert services has an eye toward equity with the creation of its new Variety, Fairness & Inclusion (DE&I) Council. The group will perform to generate consciousness, adoption and acceleration of the company’s DE&I system, as properly as a dedication to generating a welcoming place of work.
Retail Small business Solutions President Roger Wheeler will chair the council, with DE&I Supervisor Valencia Seals serving as vice chair. Each and every of the company’s source groups will have representation, alongside with just about every member of the leadership team, five at-massive users and a council coordinator.
The new council will meet up with around the system of two decades to assist the organization foster a lifestyle of belonging although also making motion designs to overcome barriers.
“At Retail Organization Products and services, we maintain ourselves accountable for fostering an natural environment the place all associates truly feel welcome and know they do the job for a enterprise where they belong,” said Wheeler. “In standing up the Council, we are equipped to additional our journey and accelerate motion.”
Retail Enterprise Products and services is established to release its next once-a-year DE&I Progress Report this spring, which will aid give staff an concept of how the corporation is progressing on its journey toward equity.
The group has been fast paced this yr with the introduction of its Accelerator Indication-On Incentive System, which offers a indication-on bonus of $20,000 to recently hired tech associates who use for IT architect positions in just the company. Those people personnel will help the corporation produce technologies products and services, systems and capabilities to assistance Ahold Delhaize’s omnichannel expansion strategies.
Retail Organization Providers also lately introduced its fourth annual SEED immersion software, aiming to assistance business owners and startups in provide chain, grocery retail, logistics, warehouse management, supply chain analytics and forecasting accelerate their path to marketplace.
Retail Organization Services presents services to 5 omnichannel grocery brands, including the Large Co., Foods Lion, Giant Meals, Hannaford and Prevent & Store. It leverages the scale of the regional brand names to push synergies and presents insights and analytics to community manufacturers to guidance their approaches as a result of Small business Integrity Expert services (lawful, possibility administration, good quality assurance) Company Companies (HR technological know-how devices and system administration) Communications and Omnichannel Support Finance Enterprise Expert services Monetary Preparing and Examination Human Resources Indirect Sourcing Information and facts Technological know-how Pharmacy Expert services Retail Innovation Retail store Advancement Leasing and Facilities Guidance and Tactic and Business Growth.
In the news release, China Online Education Group Announces Full Year 2021 Results, issued 24-Mar-2022 by China Online Education Group over PR Newswire, we are advised by the company that there are some figures and words updates based on the original copy. The complete, corrected release follows:
China Online Education Group Announces Full Year 2021 Results
BEIJING, March 24, 2022 /PRNewswire/ — China Online Education Group (“51Talk” or the “Company”) (NYSE: COE), a leading online education platform in China, with core expertise in English education, announced its unaudited financial results for the third quarter ended September 30, 2021, as well as the fourth quarter and full year ended December 31, 2021.
Full Year 2021 Financial and Operating Highlights
Net revenues were RMB2,166.5 million (US$340.0 million), a 5.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB2,054.1 million for the full year 2020.
Gross margin was 74.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with 71.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the full year 2020.
GAAP net income was RMB105.7 million(US$16.6 million), compared with GAAP net income RMB147.0 million for the full year 2020.
Non-GAAP net income1 was RMB132.7 million (US$20.8million), compared with non-GAAP net income RMB 173.7 million for the full year 2020.
Operating cash outflow was RMB676.1 million (US$106.1 million), compared with RMB719.2 million cash inflow for the full year 2020.
Fourth Quarter 2021 Financial and Operating Metrics
Net revenues were RMB412.8 million (US$64.8 million), a 22.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB535.1 million for the fourth quarter of 2020.
Gross margin was 78.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with 72.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the fourth quarter of 2020.
Net income was RMB52.0million (US$8.2 million), compared with net income of RMB31.8 million for the fourth quarter of 2020.
Non-GAAP net income was RMB55.0 million (US$8.6 million), compared with non-GAAP net income of RMB38.6 million for the fourth quarter of 2020.
Operating cash outflow was RMB268.6 million (US$42.1 million), compared with RMB188.5 million of operating cash inflow for the fourth quarter of 2020.
Cash, cash equivalents, restricted cash, time deposits and short-term investments balance stood at RMB992.6 million (US$155.8 million) as of December 31, 2021.
Third Quarter 2021 Financial and Operating Metrics
Net revenues were RMB573.6 million (US$90.0 million), a 6.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB538.5 million for the third quarter of 2020.
Gross margin was 73.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with 72.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the third quarter of 2020.
Net income was RMB 72.7 million (US$11.4 million), compared with net income of RMB31.6 million for the third quarter of 2020.
Non-GAAP net income1 was RMB78.7 million (US$12.3 million), compared with non-GAAP net income of RMB38.5 million for the third quarter of 2020.
Operating cash outflow was RMB376.7 million (US$59.1 million), compared with RMB186.1 million of operating cash inflow for the third quarter of 2020.
Cash, cash equivalents, time deposits and short-term investments balance stood at RMB1,265.7 million (US$198.6 million) as of September 30, 2021.
Active students with attended lesson consumption [2]
(in thousands)
376.5
299.1
455.9
Active students with general lesson consumption[3]
(in thousands)
338.0
406.2
20.2
353.8
363.8
2.8
470.7
483.5
2.7
“In response to the changes in regulations related to After-School Tutoring (“AST”) promulgated by the Chinese government, we have taken measures to restructure our business so that the Company’s 2022 strategy will keenly focus on overseas business. In the fourth quarter, net gross billings of overseas business have reached $2.9 million, representing 222.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} sequential growth,” said Mr. Jack Jiajia Huang, Founder, Chairman and Chief Executive Officer of 51Talk.,
“As the overseas business momentum continue to build, we have extended our product offerings to students in more than 50 countries and regions outside Mainland China. We have been able to leverage our strength in high quality teacher resources, interactive curriculum, and advanced technology platform to quickly establish presence in a new market. We will stick with our business model which balances growth with profitability and was proven in Mainland China market. We are excited in exploring opportunities in oversea markets and allow our Filipino teachers to help more students to be able to talk to the world,” concluded Mr. Huang.
[1] For more information on non-GAAP financial measures, please see the section of “Use of Non-GAAP Financial Measures” and the table captioned “Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures” set forth in this press release.
[2] An “active student with attended lesson consumption” for a specified period refers to a student who attended at least one paid lesson, excluding those students who only attended paid live broadcasting lessons or trial lessons.
[3] An “active student with general lesson consumption” for a specified period refers to a student who consumed at least one paid lesson credit, in attendance or due to minimum consumption or expiration,excluding those students who only attended paid live broadcasting lessons or trial lessons.
Third Quarter 2021 Financial Results
Net Revenues
Net revenues for the third quarter of 2021 were RMB573.6 million (US$90.0 million), a 6.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB538.5 million for the same quarter last year. The increase was primarily attributed to an increase in the number of active students, partially offset by a decrease in average revenue per active student. The number of active students with general lesson consumption in the third quarter of 2021 was 406,200, a 20.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from 338,000 for the same quarter last year. The number of active students with attended lesson consumption in the third quarter of 2021 was 376,500.
Cost of Revenues
Cost of revenues for the third quarter of 2021 was RMB151.9 million (US$23.8 million), a 3.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB146.7 million for the same quarter last year. The increase was primarily driven by an increase in total service fees paid to teachers, mainly due to an increased number of paid lessons.
Gross Profit and Gross Margin
Gross profit for the third quarter of 2021 was RMB421.8 million (US$66.2 million), a 7.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB391.8 million for the same quarter last year.
Gross margin for the third quarter of 2021 was 73.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with 72.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year. The increase was mainly attributable to the decrease of the cost per lesson, partially offset by the decrease of the revenue per lesson.
Operating Expenses
Total operating expenses for the third quarter of 2021 were RMB369.3 million (US$58.0 million), a 2.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB379.6 million for the same quarter last year. The decrease was mainly due to a decrease in sales and marketing expenses and product development expenses, partially offset by an increase of general and administrative expenses and goodwill and intangibles impairment.
Sales and marketing expenses for the third quarter of 2021 were RMB191.9 million (US$30.1 million), a 32.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB282.8 million for the same quarter last year. The decrease was mainly due to decrease in the number of personnel and lower marketing and branding expenses. Excluding share-based compensation expenses, non-GAAP sales and marketing expenses for the third quarter of 2021 were RMB191.0 million (US$30.0 million), a 31.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB280.6 million for the same quarter last year.
Product development expenses for the third quarter of 2021 were RMB40.7 million (US$6.4 million), a 6.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB43.8 million for the same quarter last year. The decrease was primarily due to lower product development personnel costs related to decrease in the number of personnel. Excluding share-based compensation expenses, non-GAAP product development expenses for the third quarter of 2021 were RMB39.3 million (US$6.2 million), a 6.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB42.1 million for the same quarter last year.
General and administrative expenses for the third quarter of 2021 were RMB104.9 million (US$16.5 million), a 97.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB53.0 million for the same quarter last year. The increase was primarily due to restructuring cost of RMB 51.4 million during the quarter. Excluding share-based compensation expenses, non-GAAP general and administrative expenses for the third quarter were RMB101.1 million (US$15.9 million), a 102.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB50.0 million for the same quarter last year. Excluding restructuring cost and share-based compensation expenses, general and administrative expenses for the third quarter would have been RMB 49.7 million (US$7.8 million), a 0.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB50.0 million for the same quarter last year.
Goodwill and intangibles impairment for the third quarter of 2021 was RMB31.8 million (US$4.9 million), compared with nil for the same quarter last year. The goodwill and intangible impairment was mainly due to the decline of fair value related to the intangible assets and goodwill in connection with the acquisition of 91waijiao.com completed in January 2015, assets acquisition of GKid completed in December 2020, and business combination of Kaola Reading completed in the second quarter of 2021. Considering recent regulatory policies on further alleviating the burden of homework and after-school tutoring for students and the changes in operating environment, the Company recognized impairment losses of the intangible assets and goodwill in the third quarter of 2021.
Other income
The exemption for the value added tax (VAT) of consumer services has been stopped as of March 31, 2021. This exemption, which covers a wide range of consumer services, was part of the Chinese government’s effort to ease the burden of businesses affected by the COVID-19 pandemic. The income obtained by taxpayers from providing essential services shall be exempted from VAT. The favorable impact of such COVID-19 relief policies was nil and RMB7.6 million in the third quarter of 2021 and 2020 respectively.
On September 30, 2019, the Ministry of Finance and the State Taxation Administration announced that from October 1, 2019 to December 31, 2021, taxpayers engaging in the provision of essential services are allowed to deduct an extra 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the deductible input value-added tax for the current period from the payable value-added tax. The impact of the policy of additional value-added tax credit for the income generated by the essential services provided by enterprises was RMB6.0 million and RMB1.7 million in the third quarter of 2021 and 2020 respectively.
Income from Operations
Operating income for the third quarter of 2021 was RMB58.4 million (US$9.2 million), compared with operating income of RMB21.4 million for the same quarter last year. Operating margin for the third quarter was 10.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with operating margin of 4.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Non-GAAP operating income for the third quarter of 2021 was RMB64.4 million (US$10.1million), compared with non-GAAP operating income of RMB28.3 million for the same quarter last year. Non-GAAP operating margin for the third quarter was 11.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with non-GAAP operating margin of 5.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Net income
Net income for the third quarter of 2021 was RMB72.7 million (US$11.4 million), compared with net income of RMB31.6 million for the same quarter last year. Net margin for the third quarter was 12.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with net margin of 5.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Non-GAAP net income for the third quarter of 2021 was RMB78.7 million (US$12.3 million), compared with non-GAAP net income of RMB38.5 million for the same quarter last year. Non-GAAP net margin for the third quarter was 13.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with non-GAAP net margin of 7.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Interest income for the third quarter of 2021 was negative RMB7.0 million, due to RMB15.0 million reversal of interest income accrual from the time-deposits early withdraw, partially offset by interest income of RMB8.0 million.
Income tax benefits for the third quarter of 2021 was RMB20.5 million.
Basic net income per share attributable to ordinary shareholders for the third quarter of 2021 was RMB0.22(US$0.03), compared with basic net income per share of RMB0.10 for the same quarter last year. Diluted net income per share attributable to ordinary shareholders for the third quarter of 2021 was RMB0.21(US$0.03), compared with diluted net income per share of RMB0.09 for the same quarter last year.
Non-GAAP basic net income per share attributable to ordinary shareholders for the third quarter of 2021 was RMB0.24(US$0.04), compared with non-GAAP basic net income per share attributable to ordinary shareholders of RMB0.12 for the same quarter last year. Non-GAAP diluted net income per share attributable to ordinary shareholders for the third quarter of 2021 was RMB0.23(US$0.04), compared with non-GAAP diluted net income per share attributable to ordinary shareholders of RMB0.11 for the same quarter last year.
Basic net income per American depositary share (“ADS”) attributable to ordinary shareholders for the third quarter of 2021 was RMB3.28(US$0.51), compared with basic net income per ADS of RMB1.46 for the same quarter last year. Diluted net income per ADS attributable to ordinary shareholders for the third quarter of 2021 was RMB3.22(US$0.51), compared with diluted net income per ADS of RMB1.38 for the same quarter last year. Each ADS represents 15 Class A ordinary shares.
Non-GAAP basic net income per ADS attributable to ordinary shareholders for the third quarter of 2021 was RMB3.56(US$0.56), compared with non-GAAP basic net income per ADS attributable to ordinary shareholders of RMB1.78 for the same quarter last year. Non-GAAP diluted net income per ADS attributable to ordinary shareholders for the third quarter of 2021 was RMB3.49(US$0.55), compared with non-GAAP diluted net income per ADS attributable to ordinary shareholders of RMB1.68 for the same quarter last year.
Balance Sheet
As of September 30, 2021, the Company had total cash, cash equivalents, time deposits and short-term investments of RMB1,265.7 million (US$198.6 million), compared with RMB1,727.7 million as of December 31, 2020. As a part of cash, cash equivalents, time deposits and short-term investments, the Company had non-current time deposits of RMB30.0 million (US$4.7 million), compared with RMB414.0 million as of December 31, 2020.
As of September 30, 2021, the Company has a consolidated net current liability of RMB919.9 million, compared with net current liability of RMB1,400.4 million as of December 31, 2020. The Company had advances from students[4] (current and non-current) of RMB2,262.5 million (US$355.0 million) as of September 30, 2021, compared with RMB2,721.0 million as of December 31, 2020.
[4] “Advances from students,” which is defined as the amount of obligation to transfer good or service to students or business partners for which consideration has been received from students in advance. The deposits from students are also presented in the total amount of “advances from students”.
Fourth Quarter 2021 Financial Results
Net Revenues
Net revenues for the fourth quarter of 2021 were RMB412.8 million (US$64.8 million), a 22.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB535.1 million for the same quarter last year. The decrease was primarily attributed to a decrease in the number of lessons booked, partially offset by an increase in the number of active students with general lesson consumption. The number of active students with general lesson consumption in the fourth quarter of 2021 was 363,800, a 2.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from 353,800 for the same quarter last year. The number of active students with attended lesson consumption in the fourth quarter of 2021 was 299,100.
Cost of Revenues
Cost of revenues for the fourth quarter of 2021 was RMB 88.3 million (US$13.9 million), a 39.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB146.1 million for the same quarter last year. The decrease was primarily driven by a decrease in total service fees paid to teachers, mainly due to a decreased number of paid lessons.
Gross Profit and Gross Margin
Gross profit for the fourth quarter of 2021 was RMB324.5 million (US$50.9 million), a 16.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB388.9million for the same quarter last year.
Gross margin for the fourth quarter of 2021 was 78.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with 72.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year. The increase was mainly attributable to the decrease of the cost per lesson and the increase of the revenue per lesson.
Operating Expenses
Total operating expenses for the fourth quarter of 2021 were RMB321.2 million (US$50.4 million), a 16.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB385.7 million for the same quarter last year. The decrease was mainly due to a decrease in sales and marketing expenses and product development expenses, partially offset by an increase in general and administrative expenses.
Sales and marketing expenses for the fourth quarter of 2021 were RMB235.8 million (US$37.0 million), a 17.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB284.5 million for the same quarter last year. The decrease was mainly due to decrease in the number of personnel and lower marketing and branding expenses. Excluding share-based compensation expenses, non-GAAP sales and marketing expenses for the fourth quarter of 2021 were RMB235.4 million (US$36.9 million), a 16.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB282.6 million for the same quarter last year.
Product development expenses for the fourth quarter of 2021 were RMB15.3 million (US$2.4 million), a 65.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB44.6 million for the same quarter last year. The decrease was primarily due to lower product development personnel costs related to decrease in the number of personnel. Excluding share-based compensation expenses, non-GAAP product development expenses for the fourth quarter of 2021 were RMB15.6 million (US$2.4 million), a 64.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB43.3 million for the same quarter last year.
General and administrative expenses for the fourth quarter of 2021 were RMB69.7 million (US$10.9 million), a 23.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB56.6 million for the same quarter last year. The increase was primarily due to restructuring cost of RMB 25.8 million during the quarter. Excluding share-based compensation expenses, non-GAAP general and administrative expenses for the fourth quarter were RMB66.7 million (US$10.5 million), a 26.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB53.0 million for the same quarter last year. Excluding restructuring cost and share-based compensation expenses, general and administrative expenses for the fourth quarter would have been RMB40.9 million (US$6.4 million), a 22.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB53.0 million for the same quarter last year.
Goodwill and intangibles impairment for the fourth quarter of 2021 was RMB0.4 million (US$0.1 million), compared with nil for the same quarter last year. The goodwill and intangibles impairment was mainly due to the decline of fair value related to the system for employee performance evaluation. Considering recent regulatory policies on further alleviating the burden of homework and after-school tutoring for students and the changes in operating environment, the Company recognized impairment losses of the intangible assets in the fourth quarter of 2021.
Other income
The exemption for the VAT of consumer services has been stopped as of March 31, 2021. This exemption, which covers a wide range of consumer services, was part of the Chinese government’s effort to ease the burden of businesses affected by the COVID-19 pandemic. The income obtained by taxpayers from providing essential services shall be exempted from VAT. The favorable impact of such COVID-19 relief policies was nil and RMB7.5 million in the fourth quarter of 2021 and 2020 respectively.
On December 31, 2019, the Ministry of Finance and the State Taxation Administration announced that from October 1, 2019 to December 31, 2021, taxpayers engaging in the provision of essential services are allowed to deduct an extra 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the deductible input value-added tax for the current period from the payable value-added tax. The impact of the policy of additional value-added tax credit for the income generated by the essential services provided by enterprises was RMB0.6 million and RMB0.3 million in the fourth quarter of 2021 and 2020 respectively.
Income from Operations
Operating income for the fourth quarter of 2021 was RMB3.9 million (US$0.6 million), compared with operating income of RMB11.0 million for the same quarter last year. Operating margin for the fourth quarter was 0.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with operating margin of 2.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Non-GAAP operating income for the fourth quarter of 2021 was RMB6.9 million (US$1.1 million), compared with non-GAAP operating income of RMB17.8 million for the same quarter last year. Non-GAAP operating margin for the fourth quarter was 1.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with non-GAAP operating margin of 3.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Net income
Net income for the fourth quarter of 2021 was RMB52.0 million (US$8.2 million), compared with net income of RMB31.8million for the same quarter last year. Net margin for the fourth quarter was 12.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with net margin of 5.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Non-GAAP net income for the fourth quarter of 2021 was RMB55.0 million (US$8.6 million), compared with non-GAAP net income of RMB38.6 million for the same quarter last year. Non-GAAP net margin for the fourth quarter was 13.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with non-GAAP net margin of 7.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same quarter last year.
Income tax benefits for the fourth quarter of 2021 was RMB34.7 million.
Basic net income per share attributable to ordinary shareholders for the fourth quarter of 2021 was RMB0.16(US$0.02), compared with basic net income per share of RMB0.10 for the same quarter last year. Diluted net income per share attributable to ordinary shareholders for the fourth quarter of 2021 was RMB0.15(US$0.02), compared with diluted net income per share of RMB0.09 for the same quarter last year.
Non-GAAP basic net income per share attributable to ordinary shareholders for the fourth quarter of 2021 was RMB0.17(US$0.03), compared with non-GAAP basic net income per share attributable to ordinary shareholders of RMB0.12 for the same quarter last year. Non-GAAP diluted net income per share attributable to ordinary shareholders for the fourth quarter of 2021 was RMB0.16(US$0.03), compared with non-GAAP diluted net income per share attributable to ordinary shareholders of RMB0.11 for the same quarter last year.
Basic net income per ADS attributable to ordinary shareholders for the fourth quarter of 2021 was RMB2.34(US$0.37), compared with basic net income per ADS of RMB1.48 for the same quarter last year. Diluted net income per ADS attributable to ordinary shareholders for the fourth quarter of 2021 was RMB2.31(US$0.36), compared with diluted net income per ADS of RMB1.39 for the same quarter last year. Each ADS represents 15 Class A ordinary shares.
Non-GAAP basic net income per ADS attributable to ordinary shareholders for the fourth quarter of 2021 was RMB2.48(US$0.39), compared with non-GAAP basic net income per ADS attributable to ordinary shareholders of RMB1.79 for the same quarter last year. Non-GAAP diluted net income per ADS attributable to ordinary shareholders for the fourth quarter of 2021 was RMB2.45(US$0.38), compared with non-GAAP diluted net income per ADS attributable to ordinary shareholders of RMB1.68 for the same quarter last year.
Balance Sheet
As of December 31, 2021, the Company had total cash, cash equivalents,restricted cash, time deposits and short-term investments of RMB992.6 million (US$155.8 million)and among which RMB50.6 million of restricted cash, compared with RMB1,727.7 million as of December 31, 2020 with nil of restricted cash. As a part of cash, cash equivalents, time deposits and short-term investments, the Company had non-current time deposits of RMB100.9 million (US$15.8 million), compared with RMB414.0 million as of December 31, 2020.
As of December 31, 2021, the Company has a consolidated net current liability of RMB944.4 million, compared with net current liability of RMB1,400.4 million as of December 31, 2020. The Company had advances from students (current and non-current) of RMB1,767.2 million (US$277.3 million) as of December 31, 2021, compared with RMB2,721.0 million as of December 31, 2020.
Full Year 2021 Financial Results
Net Revenues
Net revenues for 2021 were RMB2,166.5 million (US$340.0 million), a 5.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB2,054.1 million for 2020. The increase was primarily attributed to an increase in the number of active students with general lesson consumption.
Cost of Revenues
Cost of revenues for 2021 was RMB558.0 million (US$87.6 million), a 3.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB580.4 million for 2020. The decrease was primarily driven by a decrease in total service fees paid to teachers, mainly due to the decrease of cost per lesson driven from cost control.
Gross Profit and Gross Margin
Gross profit for 2021 was RMB1,608.6 million (US$252.4 million), a 9.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB1,473.7 million for 2020.
Gross margin for 2021 was 74.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with 71.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for 2020.
Operating Expenses
Total operating expenses for 2021 were RMB1,597.4 million (US$250.7 million), a 13.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB1,412.7 million for 2020. The increase was mainly the result of the increases in sales and marketing expenses, general and administrative expenses, product development expenses and goodwill and intangibles impairment.
Sales and marketing expenses for 2021 were RMB1,062.5 million (US$166.7 million), a 2.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB1,035.6 million for 2020. The increase was mainly due to increase in the sales and marketing personnel costs. Excluding share-based compensation expenses, non-GAAP sales and marketing expenses for 2021 were RMB1,056.3 million (US$165.8 million), a 2.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB1,026.8 million for 2020.
Product development expenses for 2021 were RMB178.8 million (US$28.1 million), a 9.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB162.8 million for 2020. Excluding share-based compensation expenses, non-GAAP product development expenses for 2021 were RMB174.3 million (US$27.4 million), a 10.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB158.4 million for 2020.
General and administrative expenses for 2021 were RMB324.0 million (US$50.8 million), a 51.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB214.2 million for 2020. The increase was primarily due to restructuring cost of RMB 85.9 million during the year. Excluding share-based compensation expenses, non-GAAP general and administrative expenses for 2021 were RMB307.5 million (US$48.3 million), a 53.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from RMB200.8 million for 2020. Excluding restructuring cost and share-based compensation expenses, general and administrative expenses for 2021 would have been RMB221.6 million (US$34.8 million), a 10.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from RMB200.8 million for 2020.
Goodwill and intangibles impairment for 2021 was RMB32.2 million (US$5.0 million), compared with nil for the same quarter last year. The goodwill and intangibles impairment was mainly due to the decline of fair value related to the acquisition of 91waijiao.com completed in January 2015, the assets acquisition of GKid completed in December 2020, the acquisition of Kaola Reading completed in the second quarter of 2021, and the system for employee performance evaluation. Considering recent regulatory policies on further alleviating the burden of homework and after-school tutoring for students and the changes in operating environment, the company recognized impairment losses of the intangible assets in 2021.
Other income
As part of Chinese government’s effort to ease the burden of businesses affected by the coronavirus (COVID-19) outbreak, the State Taxation Administration (STA) exempted a wide range of consumer services from VAT from January 2020. The income obtained by taxpayers from providing essential services shall be exempted from VAT. The favorable impact of coronavirus relief policies was RMB10.7 million and RMB32.3 million in 2021 and 2020, respectively.
On September 30, 2019, Ministry of Finance and the State Taxation Administration announced that from October 1,2019 to December 31, 2021, the taxpayers engaging in the provision of essential services are allowed to deduct an extra 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the deductible input tax for the current period from the payable tax. The impact of the policy of additional value-added tax credit for the income generated by the essential services provided by enterprises was RMB12.5 million and RMB11.1 million in 2021 and 2020, respectively.
Income from Operations
Operating income for 2021 was RMB34.4 million (US$5.4 million), compared with RMB104.4 million for 2020. Operating margin for 2021 was 1.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with operating margin of 5.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for 2020.
Non-GAAP operating income for 2021 was RMB61.4 million (US$9.6 million), compared with RMB131.2 million for 2020. Non-GAAP operating margin for 2021 was 2.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with non-GAAP operating margin of 6.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for 2020.
The favorable impact of coronavirus relief policies was RMB10.7 million in 2021. Excluding the favorable impact, operating income and non-GAAP operating income for 2021 would have been RMB23.7 million (US$3.7 million) and RMB50.7 million (US$8.0 million), representing operating margin of 1.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} and 2.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} respectively.
Net income
Net income for 2021 was RMB105.7 million (US$16.6 million), compared with RMB147.0 million for 2020. Net margin for 2021 was 4.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with net margin of 7.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for 2020.
Non-GAAP net income for 2021 was RMB132.7 million (US$20.8 million), compared with RMB173.7 million for 2020. Non-GAAP net margin for 2021 was 6.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, compared with non-GAAP net margin of 8.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for 2020.
The favorable impact of coronavirus relief policies was RMB10.7 million in 2021. Excluding the favorable impact, net income and non-GAAP net income for 2021 would have been RMB95.0 million (US$14.9 million) and RMB122.0 million (US$19.1 million), representing net margin of 4.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} and 5.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} respectively.
Income tax benefits for the fourth quarter of 2021 was RMB46.1 million.
Basic net income per ADS attributable to ordinary shareholders for 2021 was RMB4.82(US$0.76), compared with basic net income per ADS of RMB6.90 for 2020. Diluted net income per ADS attributable to ordinary shareholders for 2021 was RMB4.66(US$0.73), compared with diluted net income per ADS of RMB6.46 for 2020. Each ADS represents 15 Class A ordinary shares.
Non-GAAP basic net income per ADS attributable to ordinary shareholders for 2021 was RMB6.06(US$0.95), compared with non-GAAP basic net income per ADS of RMB8.15 for 2020. Non-GAAP diluted net income per American depositary share (“ADS”) attributable to ordinary shareholders for 2021 was RMB5.86(US$0.92), compared with non-GAAP diluted net income per ADS of RMB7.63 for 2020. Each ADS represents 15 Class A ordinary shares.
The favorable impact of coronavirus relief policies was RMB10.7 million in 2021. Excluding the favorable impact, basic net income per ADS attributable to ordinary shareholders for 2021 was RMB4.33(US$0.68) and non-GAAP basic net income ADS attributable to ordinary shareholders for 2021 was RMB5.57(US$0.87), respectively. Excluding the favorable impact, diluted net income ADS attributable to ordinary shareholders for 2021 was RMB4.19(US$0.66) and non-GAAP diluted net income per American depositary share (“ADS”) attributable to ordinary shareholders for 2020 was RMB5.38(US$0.84), respectively.
Outlook
For the first quarter of 2022, the Company currently expects net gross billings of oversea business to be between $4.4 million and $4.6 million,representing sequential growth of 51.7 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to 58.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
The above outlook is based on current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.
In addition, the Company’s future operational and financial performance depends on the future development of the implementation of the Opinion and the success of the Company’s business adjustment plans, which is subject to inherent uncertainties at this time.
Conference Call
The Company’s management will host an earnings conference call at 8:30 AM U.S. Eastern Time on March 24, 2022 (8:30 PM Beijing/Hong Kong time on March 24, 2022).
Dial-in details for the earnings conference call are as follows:
United States (toll free):
1-800-239-9838
International:
1-323-794-2551
Mainland China:
400-120-9101
Hong Kong (toll free):
800-961-105
Hong Kong:
852-3008-1527
Participants should dial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for “China Online Education Group.”
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.51talk.com.
A replay of the conference call will be accessible until December3, 2021, by dialing the following telephone numbers:
United States (toll free):
1-888-203-1112
International:
1-719-457-0820
Replay Access Code:
8412792
About China Online Education Group
China Online Education Group (NYSE: COE) is a leading online education platform in China, with core expertise in English education. The Company’s mission is to make quality education accessible and affordable. The Company’s online and mobile education platforms enable students to take live interactive English lessons, on demand. The Company connects its students with a large pool of highly qualified teachers that it assembled using a shared economy approach, and employs student and teacher feedback and data analytics to deliver a personalized learning experience to its students.
Use of Non-GAAP Financial Measures
In evaluating its business, 51Talk 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 sales and marketing expenses, non-GAAP product development expenses, non-GAAP general and administrative expenses, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to ordinary shareholders, and non-GAAP net income attributable to ordinary shareholders per share and 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 press release.
51Talk believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. 51Talk 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 51Talk’s historical performance. 51Talk computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. 51Talk 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 expenses that have been and will continue to be for the foreseeable future a significant recurring expense in the 51Talk’s business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying table at the end of this press release provides 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 U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.3726 to US$1.00, the rate in effect as of December 31, 2021 as certified for customs purposes by the Federal Reserve Bank of New York.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to 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”, “aims”, “future”, “intends”, “plans”, “believes”, “estimates”, “likely to” and similar statements. Among other things, 51Talk’s quotations from management in this announcement, as well as 51Talk’s strategic and operational plans, contain forward-looking statements. 51Talk may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Statements that are not historical facts, including statements about 51Talk’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: 51Talk’s goals and strategies; 51Talk’s expectations regarding demand for and market acceptance of its brand and platform; 51Talk’s ability to retain and increase its student enrollment; 51Talk’s ability to offer new courses; 51Talk’s ability to engage, train and retain new teachers; 51Talk’s future business development, results of operations and financial condition; 51Talk’s ability to maintain and improve infrastructure necessary to operate its education platform; competition in the online education industry in China; the expected growth of, and trends in, the markets for 51Talk’s course offerings in China; relevant government policies and regulations relating to 51Talk’s corporate structure, business and industry; general economic and business condition in China, the Philippines and elsewhere and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in 51Talk’s filings with the SEC. All information provided in this press release is as of the date of this press release, and 51Talk does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
CHINA ONLINE EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
As of
Dec. 31,
Sep.30,
Dec. 31,
Dec. 31,
2020
2021
2021
2021
RMB
RMB
RMB
US$
ASSETS
Current assets
Cash and cash equivalents
326,647
412,462
214,732
33,696
Restricted cash
–
–
50,550
7,932
Time deposits
477,408
212,436
48,437
7,601
Short-term investments
509,636
610,843
577,970
90,696
Inventory
1,935
1,656
1,080
169
Prepaid expenses and other current assets
302,057
295,309
72,450
11,369
Total current assets
1,617,683
1,532,706
965,219
151,463
Non-current assets
Property and equipment, net
21,175
28,973
17,017
2,670
Intangible assets, net
20,302
12,187
11,211
1,759
Goodwill
4,223
–
–
–
Right-of-use assets
98,001
57,312
36,907
5,792
Time deposits
414,000
30,000
100,868
15,828
Deferred tax assets
10,268
23,694
56,868
8,924
Other non-current assets
23,896
17,572
5,496
862
Total non-current assets
591,865
169,738
228,367
35,835
Total assets
2,209,548
1,702,444
1,193,586
187,298
LIABILITIES
AND SHAREHOLDERS’ DEFICIT
Current liabilities
Advances from students
2,718,776
2,261,052
1,766,032
277,129
Accrued expenses and other current liabilities
237,101
139,860
96,205
15,097
Lease liability
42,949
25,680
19,400
3,044
Taxes payable
19,288
26,001
28,027
4,398
Total current liabilities
3,018,114
2,452,593
1,909,664
299,668
Non-current liabilities
Advances from students
2,270
1,438
1,126
177
Lease liability
53,594
33,894
19,340
3,035
Other non-current liabilities
2,508
2,723
1,547
243
Total non-current liabilities
58,372
38,055
22,013
3,455
Total liabilities
3,076,486
2,490,648
1,931,677
303,123
Total shareholders’ deficit
(866,938)
(788,204)
(738,091)
(115,825)
Total liabilities and shareholders’ deficit
2,209,548
1,702,444
1,193,586
187,298
CHINA ONLINE EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands except for number of shares and per share data)
For the three months ended
For the year ended
Dec. 31,
Sep. 30,
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
2020
2021
2021
2021
2020
2021
2021
RMB
RMB
RMB
US$
RMB
RMB
US$
Net revenues
535,074
573,621
412,773
64,773
2,054,095
2,166,549
339,979
Cost of revenues
(146,134)
(151,852)
(88,276)
(13,852)
(580,417)
(557,974)
(87,558)
Gross profit
388,940
421,769
324,497
50,921
1,473,678
1,608,575
252,421
Operating expenses
Sales and marketing expenses
(284,493)
(191,909)
(235,838)
(37,008)
(1,035,620)
(1,062,523)
(166,733)
Product development expenses
(44,577)
(40,735)
(15,260)
(2,395)
(162,829)
(178,750)
(28,050)
General and administrative expenses
(56,626)
(104,907)
(69,681)
(10,934)
(214,224)
(323,968)
(50,838)
Goodwill and intangibles impairment
–
(31,780)
(396)
(62)
–
(32,176)
(5,049)
Total operating expenses
(385,696)
(369,331)
(321,175)
(50,399)
(1,412,673)
(1,597,417)
(250,670)
Other income
7,766
5,962
552
87
43,414
23,223
3,644
Income from operations
11,010
58,400
3,874
609
104,419
34,381
5,395
Interest income
11,711
(6,972)
5,735
900
38,508
21,120
3,314
Interest expense and other expenses, net
193
785
7,683
1,206
(66)
4,014
630
Income before income tax expenses
22,914
52,213
17,292
2,715
142,861
59,515
9,339
Income tax benefits
8,905
20,452
34,691
5,444
4,101
46,139
7,240
Net income attributable to ordinary shareholders
31,819
72,665
51,983
8,159
146,962
105,654
16,579
Weighted average number of ordinary shares used in computing basic income per share
Richard (Prosperous) Harmon joins Sims as Govt Running Director, Head of Public Finance Education and learning to direct the firm’s group, furnishing taxable and tax-exempt financing, as very well as options for early stage cash, for schooling companies nationwide. Abundant provides 30+ years’ knowledge in investment decision and commercial banking, owning very first released his occupation with Lancaster Pollard. In the course of his vocation, Rich has focused his work to education and constructed just one of the top charter school investment decision banking methods in the region. He most not long ago served as Head of Public Finance with BB&T Cash Marketplaces/Truist Securities. Prosperous acquired his bachelor’s diploma in arithmetic and economics at Denison College and a J.D. degree from Cash College Legislation School. Wealthy is based mostly in Columbus, Ohio.
Robert (Rob) Nickell joins Sims as Government Vice President, even more building the general public finance training exercise. Rob commenced his investment banking profession as an analyst at Wells Fargo about 20 several years in the past. Due to the fact then, he has been a key driver in partnering with Rich to build a single of the preeminent charter school tactics nationwide. Rob gained his bachelor’s diploma in organization administration from Emory College and his MBA from The University of Texas. Based mostly in Dallas, TX, Rob also actively performs on the West Coast.
“We are thrilled that Loaded Harmon and Rob Nickell have joined Sims to increase our education and learning exercise. Sims has a extended heritage of functioning with companies that are fully commited to serving other folks in have to have, and share in our main values that are the hallmark of Sims. Loaded and Rob are passionate about increasing and increasing the high quality of schooling, specially for those people children that are most vulnerable, and supporting their communities flourish,” claimed Aaron Rulnick, Handling Principal, HJ Sims.
Rulnick continued, “Rich and Rob have a solid history of creating terrific groups, which is in large section owing to their extraordinary reputations and relationships in the schooling sector. We appear ahead to the business expertise and funding expertise that Wealthy and Rob deliver to Sims and to working closely with them to construct out our instruction follow.”
As 1 of America’s revolutionary economical providers firms and well-recognized for its taxable and tax-exempt municipal financings in the senior residing sector, this key expansion of Sims’ education and learning follow supports the firm’s determination to enriching communities, companies and the lives of its customers. “The whole Sims group, particularly the firm’s non-public prosperity workforce, are eager to operate with Rich and Rob broadening the marketplace for constitution university bonds. We are deeply dedicated to serving our customers with determination, knowledge, enthusiasm and integrity,” explained William Sims, Controlling Principal, HJ Sims.
“With our specialist underwriting workforce, potent institutional and personal consumer distribution networks, and the addition of two this kind of remarkably regarded bankers, Sims is properly-positioned and committed to assembly the needs of our clientele in the training sector,” explained Jeffrey Sands, Running Principal, HJ Sims. “Our focused workforce of monetary pros foresee partnering with our instruction sector clientele to supply the ground breaking funding answers we are so happy to execute for all shoppers. Our biggest satisfaction is getting a correct companion in our clients’ good results. We know Abundant and Rob share this sentiment,” explained Sands.
ABOUT HJ SIMS: Launched in 1935, HJ Sims is a privately held financial investment financial institution and wealth administration firm. Headquartered in Fairfield, CT, Sims has nationwide financial commitment banking, private wealth administration and buying and selling spots. Member FINRA, SIPC. Testimonials may perhaps not be agent of another client’s knowledge. Previous effectiveness is no assurance of upcoming effects. Facebook, LinkedIn, Twitter, Instagram.
BEIJING, Feb. 21, 2022 /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 third quarter of fiscal year 2022 ended November 30, 2021.
Highlights for the Third Quarter of Fiscal Year 2022
Net revenues decreased by 8.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year to US$1,020.9 million from US$1,119.1 million in the same period of the prior year.
Loss from operations was US$108.4 million, compared to loss from operations of US$127.4 million in the same period of the prior year.
Non-GAAP loss from operations, which excluded share-based compensation expenses, was US$67.6 million, compared to non-GAAP loss from operations of US$73.4 million in the same period of the prior year.
Net loss attributable to TAL was US$99.4 million, compared to net loss attributable to TAL of US$43.6 million in the same period of the prior year.
Non-GAAP net loss attributable to TAL, which excluded share-based compensation expenses, was US$58.6 million, compared to non-GAAP net income attributable to TAL of US$10.4 million in the same period of the prior year.
Basic and diluted net loss per American Depositary Share (“ADS”) were both US$0.15. Non-GAAP basic and diluted net loss per ADS, which excluded share-based compensation expenses, were both US$0.09. Three ADSs represent one Class A common share.
Cash, cash equivalents and short-term investments totaled US$2,837.2 million as of November 30, 2021, compared to US$5,937.5 million as of February 28, 2021.
Highlights for the Nine Months Ended November 30, 2021
Net revenues increased by 22.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year to US$3,849.8 million from US$3,133.1 million in the same period of the prior year.
Loss from operations was US$615.2 million, compared to loss from operations of US$141.0 million in the same period of the prior year.
Non-GAAP loss from operations, which excluded share-based compensation expenses, was US$440.5 million, compared to non-GAAP loss from operations of US$16.4 million in the same period of the prior year.
Net loss attributable to TAL was US$1,028.0 million, compared to net income attributable to TAL of US$53.0 million in the same period of the prior year.
Non-GAAP net loss attributable to TAL, which excluded share-based compensation expenses, was US$853.3 million, compared to non-GAAP net income attributable to TAL of US$177.6 million in the same period of the prior year.
Basic and diluted net loss per ADS were both US$1.60. Non-GAAP basic and diluted net loss per ADS, excluding share-based compensation expenses, were both US$1.33.
Financial Data——Third Quarter and First Nine Months of Fiscal Year 2022
(In US$ thousands, except per ADS data and percentages)
Financial Results for the Third Quarter of Fiscal Year 2022
Net Revenues
In the third quarter of fiscal year 2022, TAL reported net revenues of US$1,020.9 million, representing an 8.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from US$1,119.1 million in the third quarter of fiscal year 2021.
Operating Costs and Expenses
In the third quarter of fiscal year 2022, operating costs and expenses were US$1,139.3 million, representing a 9.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from US$1,255.9 million in the third quarter of fiscal year 2021. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$1,098.5 million, representing an 8.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease from US$1,201.8 million in the third quarter of fiscal year 2021.
Cost of revenues increase by 0.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$519.5 million from US$516.0 million in the third quarter of fiscal year 2021. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increase by 0.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$519.2 million, from US$515.2 million in the third quarter of fiscal year 2021.
Selling and marketing expenses decreased by 35.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$273.6 million from US$420.7 million in the third quarter of fiscal year 2021. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, decreased by 36.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$258.6 million, from US$406.4 million in the third quarter of fiscal year 2021.
General and administrative expenses increased by 5.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$300.0 million from US$283.8 million in the third quarter of fiscal year 2021. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 12.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$274.4 million, from US$244.5 million in the third quarter of fiscal year 2021.
Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 24.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$40.8 million in the third quarter of fiscal year 2022 from US$54.0 million in the same period of fiscal year 2021.
Impairment loss on intangible assets and goodwill was $46.2 million for the third quarter of fiscal year 2022, compared to US$35.7 million for the third quarter of fiscal year 2021.
Gross Profit
Gross profit decreased by 16.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$501.4 million from US$603.6 million in the third quarter of fiscal year 2021.
Loss from Operations
Loss from operations was US$108.4 million in the third quarter of fiscal year 2022, compared to loss from operations of US$127.4 million in the third quarter of fiscal year 2021. Non-GAAP loss from operations was US$67.6 million, compared to Non-GAAP loss from operations of US$73.4 million in the same period of the prior year.
Other Income
Other income was US$9.5 million for the third quarter of fiscal year 2022, compared to other income of US$45.5 million in the third quarter of fiscal year 2021.
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was nil for the third quarter of fiscal year 2022, compared to US$11.5 million for the third quarter of fiscal year 2021.
Income Tax Benefit/(expense)
Income tax expense was US$25.6 million in the third quarter of fiscal year 2022, compared to US$13.9 million of income tax benefit in the third quarter of fiscal year 2021.
Net Loss/(income) Attributable to TAL Education Group
Net loss attributable to TAL was US$99.4 million in the third quarter of fiscal year 2022, compared to net loss attributable to TAL of US$43.6 million in the third quarter of fiscal year 2021. Non-GAAP net loss attributable to TAL, which excluded share-based compensation expenses, was US$58.6 million, compared to Non-GAAP net income attributable to TAL of US$10.4 million in the third quarter of fiscal year 2021.
Basic and Diluted Net Loss per ADS
Basic and diluted net loss per ADS were both US$0.15 in the third quarter of fiscal year 2022. Non-GAAP basic and diluted net loss per ADS, which excluded share-based compensation expenses, were both US$0.09, in the third quarter of fiscal year 2022.
Cash, Cash Equivalents, and Short-Term Investments
As of November 30, 2021, the Company had US$1,347.9 million of cash and cash equivalents and US$1,489.3 million of short-term investments, compared to US$3,243.0 million of cash and cash equivalents and US$2,694.5 million of short-term investments as of February 28, 2021.
Financial Results for the First Nine Months of Fiscal Year 2022
Net Revenues
For the first nine months of fiscal year 2022, TAL reported net revenues of US$3,849.8 million, representing a 22.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from US$3,133.1 million in the first nine months of fiscal year 2021.
Operating Costs and Expenses
In the first nine months of fiscal year 2022, operating costs and expenses were US$4,480.0 million, a 36.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from US$3,291.5 million in the first nine months of fiscal year 2021. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$4,305.3 million, a 35.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase from US$3,166.9 million in the first nine months of fiscal year 2021.
Cost of revenues increased by 36.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$2,005.3 million from US$1,467.1 million in the first nine months of fiscal year 2021. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 36.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$2,004.3 million from US$1,466.0 million in the first nine months of fiscal year 2021.
Selling and marketing expenses decreased by 0.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$1,014.7 million from US$1,019.6 million in the first nine months of fiscal year 2021. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, decreased by 3.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$951.2 million from US$988.0 million in the first nine months of fiscal year 2021.
General and administrative expenses increased by 28.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$987.6 million from US$768.7 million in the first nine months of fiscal year 2021. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 29.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$877.3 million from US$676.9 million in the first nine months of fiscal year 2021.
Total share-based compensation expenses allocated to the related operating costs and expenses increased by 40.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$174.7 million in the first nine months of fiscal year 2022 from US$124.6 million in the same period of fiscal year 2021.
Impairment loss on intangible assets and goodwill was US$472.4 million for the first nine months of fiscal year 2022, compared to US$36.0 million for the same period of fiscal year 2021.
Gross Profit
Gross profit grew by 10.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to US$1,844.5 million from US$1,666.0 million in the first nine months of fiscal year 2021.
Loss from Operations
Loss from operations was US$615.2 million in the first nine months of fiscal year 2022, compared to loss from operations of US$141.0 million in the same period of the prior year. Non-GAAP loss from operations, which excluded share-based compensation expenses, was US$440.5 million for the first nine months of fiscal year 2022, compared to non-GAAP loss from operations, which excluded share-based compensation expenses, was US$16.4 million in the first nine months of fiscal year 2021.
Other Income
Other income was US$17.6 million for the first nine months of fiscal year 2022, compared to other income of US$132.9 million for the first nine months of fiscal year 2021.
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was US$178.1 million for the first nine months of fiscal year 2022, compared to US$18.4 million for the first nine months of fiscal year 2021.
Income Tax Expense
Income tax expense was US$367.1 million in the first nine months of fiscal year 2022, compared to US$10.6 million of income tax expense in the first nine months of fiscal year 2021.
Net Loss/(income) Attributable to TAL Education Group
Net loss attributable to TAL was US$1,028.0 million in the first nine months of fiscal year 2022, compared to net income attributable to TAL of US$53.0 million in the first nine months of fiscal year 2021. Non-GAAP net loss attributable to TAL, which excluded share-based compensation expenses, was US$853.3 million in the first nine months of fiscal year 2022, compared to Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$177.6 million in the first nine months of fiscal year 2021.
Basic and Diluted Net Loss per ADS
Basic and diluted net loss per ADS were both US$1.60, in the first nine months of fiscal year 2022. Non-GAAP basic and Non-GAAP diluted net loss per ADS, which excluded share-based compensation expenses, were both US$1.33, in the first nine months of fiscal year 2022.
Recent Development
On November 12, 2021, the Company issued a press release to announce that in response to the regulatory developments relating to after-school tutoring services, including the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education, published in July 2021 by the General Office of the CPC Central Committee and the General Office of the State Council (the “Opinion”) and the related implementation rules, regulations and measures promulgated by competent authorities, the Company decided to cease offering academic subjects to students from kindergarten through grade nine (“K9 Academic AST Services”) in the mainland of China by the end of December 2021.
The Company has completed the cessation by the due date and expects that the cessation will have a substantial adverse impact on the Company’s revenues for the fiscal year ending February 28, 2022 and subsequent periods. In the fiscal year ended February 28, 2021, the revenues from offering K9 Academic AST Services accounted for a substantial majority of the Company’s total revenues in the year. Therefore, the Company believes that the financial results for the fiscal periods ended November 30, 2021 would not be indicative for its performance going forward.
By leveraging its leading-edge education technology, high quality content and extensive experience, the Company will continue to operate and develop the portion of its business other than K9 Academic AST Services, and will also explore other opportunities to provide learning solutions in accordance with relevant rules and regulations.
The Company will continue to seek guidance from and cooperate with government authorities in various provinces and municipalities in China in connection with its efforts to comply with the policy directives in the Opinion and any related implementation rules, regulations and measures. The Company will further adjust its business operations as required, and provide updates to its shareholders as appropriate.
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 services to students from pre-school to the twelfth grade primarily through three flexible class formats: small classes, personalized premium services, and online courses. Our learning services 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 income from operations, non-GAAP net income attributable to TAL, non-GAAP basic and non-GAAP diluted net 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.
TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
As of
February 28, 2021
As of
November 30, 2021
ASSETS
Current assets
Cash and cash equivalents
$ 3,242,953
$ 1,347,934
Restricted cash-current
1,758,937
1,110,112
Short-term investments
2,694,555
1,489,245
Inventory
38,675
22,239
Amounts due from related parties-current
2,964
2,093
Income tax receivables
15,641
20,926
Prepaid expenses and other current assets
403,110
178,349
Total current assets
8,156,835
4,170,898
Restricted cash-non-current
16,094
377,898
Property and equipment, net
511,415
358,914
Deferred tax assets
317,189
8,524
Rental deposits
102,555
94,234
Intangible assets, net
66,041
16,776
Land use right, net
216,702
216,942
Goodwill
454,413
18,836
Amounts due from related parties- non-current
–
63
Long-term investments
667,636
557,974
Long-term prepayments and other non-current assets
57,694
19,943
Operating lease right-of-use assets
1,545,735
828,980
Total assets
$ 12,112,309
$ 6,669,982
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$ 353,778
$ 150,867
Deferred revenue-current
1,387,493
538,979
Amounts due to related parties-current
3,488
312
Accrued expenses and other current liabilities
911,283
928,463
Income tax payable
65,138
33,297
Current portion of long-term debt
270,000
–
Operating lease liabilities, current portion
382,671
247,344
Total current liabilities
3,373,851
1,899,262
Deferred revenue-non-current
30,005
20
Deferred tax liabilities
10,333
17,898
Bond payable
2,300,000
–
Operating lease liabilities, non-current portion
1,193,564
634,295
Total liabilities
6,907,753
2,551,475
Mezzanine equity
Redeemable non-controlling interests
1,775
–
Equity
Class A common shares
148
166
Class B common shares
67
49
Additional paid-in capital
4,369,125
4,358,131
Statutory reserve
121,285
111,151
Retained earnings/(accumulated deficit)
624,883
(392,975)
Accumulated other comprehensive income
86,321
68,888
Total TAL Education Group’s equity
5,201,829
4,145,410
Noncontrolling interest
952
(26,903)
Total equity
5,202,781
4,118,507
Total liabilities, mezzanine equity and equity
$ 12,112,309
$ 6,669,982
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 November 30,
For the Nine Months Ended November 30,
2020
2021
2020
2021
Net revenues
$ 1,119,135
$ 1,020,932
$ 3,133,066
$ 3,849,755
Cost of revenues (note 1)
515,560
519,483
1,467,112
2,005,252
Gross profit
603,575
501,449
1,665,954
1,844,503
Operating expenses (note 1)
Selling and marketing
420,747
273,629
1,019,598
1,014,666
General and administrative
283,827
299,963
768,719
987,595
Impairment loss on intangible assets and goodwill
35,727
46,247
36,031
472,437
Total operating expenses
740,301
619,839
1,824,348
2,474,698
Government subsidies
9,337
9,961
17,380
15,035
Loss from operations
(127,389)
(108,429)
(141,014)
(615,160)
Interest income
28,879
12,747
79,065
84,644
Interest expense
(2,714)
(1,821)
(9,378)
(7,871)
Other income
45,507
9,520
132,948
17,611
Impairment loss on long-term investments
(11,472)
–
(18,357)
(178,063)
(Loss)/income before provision for income tax and income from equity method investments
(67,189)
(87,983)
43,264
(698,839)
Income tax benefit/(expense)
13,887
(25,562)
(10,556)
(367,120)
Income from equity method investments
411
6,423
6,352
10,471
Net (loss)/income
(52,891)
(107,122)
39,060
(1,055,488)
Add: Net loss attributable to noncontrolling interest
9,283
7,754
13,952
27,496
Total net (loss)/income attributable to TAL Education Group
$ (43,608)
$ (99,368)
$ 53,012
$ (1,027,992)
Net (loss)/income per common share
Basic
$ (0.22)
$ (0.46)
$ 0.26
$ (4.79)
Diluted
(0.22)
(0.46)
0.25
(4.79)
Net (loss)/income per ADS (note 2)
Basic
$ (0.07)
$ (0.15)
$ 0.09
$ (1.60)
Diluted
(0.07)
(0.15)
0.08
(1.60)
Weighted average shares used in calculating net (loss)/income per common share
Basic
202,039,751
214,672,624
200,786,811
214,619,651
Diluted
202,039,751
214,672,624
208,710,216
214,619,651
Note1: Share-based compensation expenses are included in the operating costs and expenses as follows:
For the Three Months
For the Nine Months
Ended November 30,
Ended November 30,
2020
2021
2020
2021
Cost of revenues
$ 404
$ 262
$ 1,158
$ 996
Selling and marketing expenses
14,322
15,008
31,644
63,440
General and administrative expenses
39,309
25,548
91,805
110,261
Total
$ 54,035
$ 40,818
$ 124,607
$ 174,697
Note 2: Three ADSs represent one Class A common Share.
TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME/(LOSS)
(In thousands of U.S. dollars)
For the Three Months Ended
November 30,
For the Nine Months Ended
November 30,
2020
2021
2020
2021
Net (loss)/income
$ (52,891)
$ (107,122)
$ 39,060
$ (1,055,488)
Other comprehensive income/(loss), net of tax
54,944
6,053
87,834
(17,796)
Comprehensive income/(loss)
2,053
(101,069)
126,894
(1,073,284)
Add: Comprehensive loss attributable to noncontrolling interest
8,581
8,106
12,872
27,855
Comprehensive income/(loss) attributable to TAL Education Group
$ 10,634
$ (92,963)
$ 139,766
$ (1,045,429)
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 November 30,
For the Nine Months Ended November 30,
2020
2021
2020
2021
Cost of revenues
$ 515,560
$ 519,483
$ 1,467,112
$ 2,005,252
Share-based compensation expense in cost of revenues
404
262
1,158
996
Non-GAAP cost of revenues
515,156
519,221
1,465,954
2,004,256
Selling and marketing expenses
420,747
273,629
1,019,598
1,014,666
Share-based compensation expense in selling and marketing expenses
14,322
15,008
31,644
63,440
Non-GAAP selling and marketing expenses
406,425
258,621
987,954
951,226
General and administrative expenses
283,827
299,963
768,719
987,595
Share-based compensation expense in general and administrative expenses
39,309
25,548
91,805
110,261
Non-GAAP general and administrative expenses
244,518
274,415
676,914
877,334
Operating costs and expenses
1,255,861
1,139,322
3,291,460
4,479,950
Share-based compensation expense in operating costs and expenses
54,035
40,818
124,607
174,697
Non-GAAP operating costs and expenses
1,201,826
1,098,504
3,166,853
4,305,253
Loss from operations
(127,389)
(108,429)
(141,014)
(615,160)
Share based compensation expenses
54,035
40,818
124,607
174,697
Non-GAAP loss from operations
(73,354)
(67,611)
(16,407)
(440,463)
Net (loss)/income attributable to TAL Education Group
(43,608)
(99,368)
53,012
(1,027,992)
Share based compensation expenses
54,035
40,818
124,607
174,697
Non-GAAP net income/(loss) attributable to TAL Education Group
$ 10,427
$ (58,550)
$ 177,619
$ (853,295)
Net (loss)/income per ADS
Basic
$ (0.07)
$ (0.15)
$ 0.09
$ (1.60)
Diluted
(0.07)
(0.15)
0.08
(1.60)
Non-GAAP Net income/(loss) per ADS
Basic
$ 0.02
$ (0.09)
$ 0.29
$ (1.33)
Diluted
0.02
(0.09)
0.28
(1.33)
ADSs used in calculating net (loss)/income per ADS
Basic
606,119,253
644,017,872
602,360,433
643,858,953
Diluted
606,119,253
644,017,872
626,130,648
643,858,953
ADSs used in calculating Non-GAAP income/(loss) per ADS
Purchaser and animal welfare advocates are decrying higher-cost financial loans they say are remaining offered at pet suppliers across the U.S. to aid men and women obtain puppies.
Ogden, Utah-dependent Transportation Alliance Financial institution, or TAB Bank, is encouraging a lending enterprise called EasyPay Finance bypass state curiosity price caps and make pet financial loans with yearly fascination prices of in between 130{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} and almost 189{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, the National Purchaser Law Center said in a report. Those premiums are illegal in most states for non-bank creditors.
But EasyPay troubles its financial loans through TAB, enabling the dollars to be classified as bank financial loans exempt from point out laws, according to the advocacy group. That practice is identified as “hire-a-financial institution.”
The NCLC is amid those petitioning the Federal Deposit Coverage Corporation — the agency that supervises banks like TAB — to ban hire-a-bank lending techniques.
A different coalition of shopper and civil legal rights teams previously this month termed on the FDIC to cease four Utah financial institutions together with TAB from becoming a “entrance for predatory lenders evading state curiosity level limitations.” People lenders include things like Carlsbad, California-based EasyPay, which labored with TAB to manufactured financial loans of up to 188.99{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} APR by way of firms providing auto repairs, home furnishings, house appliances, tires and pets, among other products and solutions, the team stated.
“TAB Financial institution is misusing its bank charter by fronting for abusive financial loans that bleed individuals dry,” Nadine Chabrier, plan and litigation counsel at the Middle for Accountable Lending, claimed Tuesday in a assertion. “Responsible merchants should prevent peddling predatory EasyPay financial loans, and the FDIC ought to conclusion TAB Bank’s participation in this plan.”
The FDIC declined to comment. EasyPay and TAB Financial institution did not return requests for comment.
“I am at a decline”
Hundreds of individuals have complained on regulator and shopper web sites about loans from EasyPay, also regarded as Duvera Billing Expert services, which describes alone as a purchaser lending assistance that caters to vehicle-repair and retail merchants.
According to a single complaint lodged with the Consumer Financial Defense Bureau in Oct 2020, a Florida few obtaining a puppy priced at $3,000 agreed to the pet shop’s suggestion that they utilize for financing, which lined $2,200, leaving them to spend one more $800 in funds.
Assured the puppy dog experienced all his shots and was in outstanding health and fitness, they took him property that working day. But the pup soon shown significant overall health troubles that led to 1000’s of bucks of veterinarian bills and his demise a 12 months afterwards. Duvera Billing Products and services “is reporting I owe $5,500 on my credit rating report owing to fascination,” even immediately after a year of payments, the complaint mentioned.
The case was marked as shut, with Duvera outlining that it “thinks it acted appropriately as approved by agreement or legislation,” according to the CFPB web site.
An Oct 2021 grievance to the Improved Company Bureau concerned the acquire of a dog at zero desire for 90 days, which then jumped to 79{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}. The doggy owner explained currently being stuck paying bi-weekly payments of $179, with only $34 heading to the principal.
“I am at a decline,” stated the individual, who mentioned he’ll have paid $6,400 for his pet by the time the contract ends.
Puppies for gain
Outside of harming shoppers, the predatory dog financial loans assistance finance what animal legal rights groups call dog mills— large-quantity doggy-breeding amenities that churn out puppies for significant profits.An approximated 10,000 this kind of services offer the the greater part of pups offered in pet retailers and online, according to the Humane Modern society of the United States.
The sale of dogs and cats in pet merchants is prohibited in California and Maryland, alongside with hundreds of communities, from Riverhead, New York, to Chicago. Elizabethtown, Kentucky, is amongst the newest to go these an ordinance.
A Human Culture of United States undercover investigation uncovered ill and dying puppies in a Manhattan pet keep in 2021, in accordance to the team.
Humane Culture of the United States
“Pushing financed buys is just another way puppy dog mills and their pet store profits stores get absent with promoting puppies for hundreds of bucks to unsuspecting shoppers, numerous of whom end up with exceptionally substantial desire rates and concealed costs they commonly can not afford,” John Goodwin, the animal welfare group’s senior director of the Prevent Dog Mills marketing campaign, said in a information launch. “Some pet stores have documented that 80{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the puppies they provide are financed, indicating that these predatory financial loans are a crucial component of the pup mill to pet retailer pipeline.”
The HSUS advises all those wanting for a pet to find a accountable breeder, but only immediately after initial checking animal shelters and rescue teams.
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The Company Services group has a good deal of wonderful shares, but buyers should normally be wanting for businesses that are outperforming their peers. Is Mitie Team PLC. (MITFY) 1 of those people shares appropriate now? Let us acquire a closer search at the stock’s year-to-date overall performance to locate out.
Mitie Team PLC. is a member of our Organization Providers group, which features 308 distinctive providers and at present sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 diverse teams, measuring the regular Zacks Rank of the individual stocks inside the sector to gauge the toughness of every single group.
The Zacks Rank is a successful inventory-choosing product that emphasizes earnings estimates and estimate revisions. The technique highlights a selection of diverse shares that could be poised to outperform the broader marketplace about the subsequent one particular to three months. Mitie Group PLC. is currently sporting a Zacks Rank of #2 (Purchase).
In excess of the previous 3 months, the Zacks Consensus Estimate for MITFY’s whole-calendar year earnings has moved 11.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} better. This signifies that analyst sentiment is much better and the stock’s earnings outlook is improving.
Primarily based on the newest out there data, MITFY has obtained about .9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} so considerably this calendar year. In the meantime, the Business Services sector has returned an typical of -9.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} on a 12 months-to-date foundation. This signifies that Mitie Group PLC. is outperforming the sector as a entire this yr.
Another inventory in the Company Services sector, Randstad Keeping NV (RANJY), has outperformed the sector so much this 12 months. The stock’s 12 months-to-date return is .7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.
For Randstad Holding NV, the consensus EPS estimate for the present-day year has enhanced .7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} more than the past three months. The inventory at the moment has a Zacks Rank #2 (Buy).
To break items down far more, Mitie Group PLC. belongs to the Small business – Expert services sector, a team that includes 27 particular person corporations and at present sits at #84 in the Zacks Marketplace Rank. This group has lost an normal of 19.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} so much this calendar year, so MITFY is executing better in this place.
On the other hand, Randstad Keeping NV belongs to the Staffing Corporations business. This 16-inventory marketplace is now ranked #12. The market has moved -1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} yr to date.
Going ahead, buyers interested in Business Products and services shares should really continue to shell out close notice to Mitie Team PLC. and Randstad Keeping NV as they could preserve their stable performance.
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