FOSHAN, China, Dec. 21, 2021 /PRNewswire/—Bright Scholar
Education Holdings Limited ("Bright Scholar," the "Company," "we"
or "our") (NYSE: BEDU), a global premier education service company,
today announced its unaudited financial results for the fourth
fiscal quarter and fiscal year ended August
31, 2021.
IMPACT OF IMPLEMENTATION RULES FOR PRIVATE EDUCATION
LAWS
Implementation Rules: On April 7,
2021, the State Council of the
People's Republic of China promulgated the amended
Implementation Regulations of the Law on the Promotion of Private
Education of the People's Republic of
China (the "Implementation Rules"), which became
effective on September 1, 2021. The
Implementation Rules prohibit social organizations and individuals
from controlling private schools that provide compulsory education
and not-for-profit kindergartens through, among other methods,
mergers, acquisitions and contractual arrangements. Additionally,
the Implementation Rules prohibit any private schools providing
compulsory education from conducting transactions with its related
parties. As a result, the Implementation Rules affected the
Company's control over the affiliated entities providing compulsory
education and not-for-profit kindergartens as well as the sponsor
entities (collectively referred to as the "Affected Entities").
Actions: In compliance with the Implementation Rules and
other applicable PRC regulations, the Company has determined to
cease VIE contractual arrangements with schools providing
compulsory education, not-for-profit kindergartens, and the sponsor
entities, and classified them as discontinued operations. As of the
date of this earnings release, the Company is still in the process
of working with advisors and relevant authorities to ascertain the
manner and definitive scope of the Business Disposal Plan (the
"Plan") as specified in the Company's EGM Proxy Statement, dated
November 15, 2021, furnished to the
Company's shareholders by its board of directors. Moreover, the
Company has been actively engaging with the Affected Entities in
the negotiation of possible future cooperation in the provision of
operation services as well as management services such as
consultation for school operation, catering and accommodation,
property management and maintenance, administrative management,
student recruiting and school branding.
Financial Impact: Based on above and the relevant
accounting standard in accordance with U.S. GAAP, the Company was
deemed to have lost control over the Affected Entities on
August 31, 2021. The discontinued
operations of the Affected Entities had a substantial adverse
impact on the Company's revenues for fourth fiscal quarter and
fiscal year ended August 31, 2021. As
of the date of this earnings release, revenue for the discontinued
operations was RMB470.7 million for
the fourth fiscal quarter and RMB2,303.3
million for the year ended August 31,
2021.
The definitive financial impact from the implementation of the
Plan may vary subject to the actual scope of entities that are to
be disposed of pursuant to the Plan.
Guidance for Fiscal Year 2022: As the scope of entities
to be disposed of pursuant to the Business Disposal Plan has yet to
be finalized, the management is currently not in a position to
provide a meaningful estimate of the Company's future financial
performance. For that reason, the Company has decided not to
provide a financial guidance for fiscal year 2022 until the Company
has a better and more definitive understanding of the outcomes of
the impact the Business Disposal Plan will have on the Company's
financial performance.
FINANCIAL PERFORMANCE HIGHLIGHTS
Fourth Fiscal Quarter Ended August 31,
2021 Financial Highlights
(in comparison to the
same period of the last fiscal year):
RMB in
million Except
EPS and %
|
Fourth Fiscal
Quarter Ended August
31, 2021
|
Fourth Fiscal
Quarter
Ended August 31, 2020
|
YoY
% Change
|
Revenue from
continuing operations
|
320.0
|
259.5
|
23.3%
|
Gross Profit from
continuing operations
|
48.3
|
23.5
|
105.6%
|
Operating Loss from
continuing operations
|
(204.0)
|
(128.6)
|
(58.6%)
|
(Loss)/income from discontinued operations, net
of tax
|
(198.9)
|
1.0
|
(21,041.2%)
|
Net Loss for the
quarter
|
(478.2)
|
(148.6)
|
(221.8%)
|
|
|
|
|
Adjusted Gross Profit
from continuing operations (1)
|
53.0
|
28.4
|
86.6%
|
Adjusted Operating
Loss from continuing operations (2)
|
(99.2)
|
(109.6)
|
9.5%
|
Adjusted Net Loss
(3) for the quarter
|
(175.5)
|
(131.4)
|
(33.5%)
|
Adjusted EBITDA
(4) for the quarter
|
(29.8)
|
(59.7)
|
50.1%
|
|
|
|
|
Basic and Diluted
Loss per Share from continuing operations
|
(2.40)
|
(1.31)
|
(83.2%)
|
Basic and Diluted
(Loss)/earnings per Share from discontinued operations
|
(0.66)
|
0.02
|
(3,400.0%)
|
Adjusted Basic and
Diluted Loss per Share (5) for the
quarter
|
(1.53)
|
(1.16)
|
(31.9%)
|
Fiscal Year 2021 Ended August 31,
2021 Financial Highlights
(in comparison to the
same period of the last fiscal year):
RMB in
million Except
EPS and %
|
Fiscal Year
2021 Ended August 31,
2021
|
Fiscal Year
2020 Ended August 31,
2020
|
YoY
% Change
|
Revenue from
continuing operations
|
1,401.8
|
1,476.3
|
(5.1%)
|
Gross Profit from
continuing operations
|
221.5
|
416.8
|
(46.9%)
|
Operating Loss from
continuing operations
|
(389.7)
|
(123.8)
|
(214.8%)
|
Income from
discontinued operations, net of tax
|
369.3
|
471.5
|
(21.7%)
|
Net (Loss)/income for
the year
|
(165.8)
|
164.2
|
(201.0%)
|
|
|
|
|
Adjusted Gross Profit
from continuing operations (1)
|
237.7
|
443.6
|
(46.4%)
|
Adjusted Operating
Loss from continuing operations (2)
|
(271.4)
|
(94.9)
|
186.0%
|
Adjusted Net Loss
(3) for the year
|
(420.2)
|
(283.6)
|
48.2%
|
Adjusted EBITDA
(4) for the year
|
(30.3)
|
39.7
|
(176.2%)
|
|
|
|
|
Basic and Diluted
Loss per Share from continuing
operations
|
(4.54)
|
(2.64)
|
(72.0%)
|
Basic and Diluted
Earnings per Share from discontinued operations
|
4.09
|
3.98
|
2.8%
|
Adjusted Basic and
Diluted Loss per Share (5) for the year
|
(3.57)
|
(2.44)
|
(46.3%)
|
______________________________________________________________________________________________
1. Adjusted gross profit/(loss) from continuing
operations is defined as gross profit/(loss) from continuing
operations excluding amortization of intangible assets.
2. Adjusted operating income/(loss) from continuing
operations is defined as operating income/(loss) from continuing
operations excluding share-based compensation expense, amortization
of intangible assets, impairment loss on operating lease
right-of-use assets and impairment loss on goodwill.
3. Adjusted net income/(loss) is defined as net
income/(loss) excluding share-based compensation expense,
amortization of intangible assets, tax effect of amortization of
intangible assets, impairment loss on operating lease right-of-use
assets, impairment loss on goodwill and income/(loss) from
discontinued operations, net of tax.
4. Adjusted EBITDA is defined as net income/(loss)
excluding interest income/(expense), net; income tax
expense/benefit; depreciation and amortization, share-based
compensation expense, impairment loss on operating lease
right-of-use assets, impairment loss on goodwill and income/(loss)
from discontinued operations, net of tax.
5. Adjusted basic and diluted earnings/(loss) per
share is defined as adjusted net income/(loss) attributable to
ordinary shareholders (net income/(loss) attributable to ordinary
shareholders excluding share-based compensation expense,
amortization of intangible assets, tax effect of amortization of
intangible assets, impairment loss on operating lease right-of-use
assets, impairment loss on goodwill and income/(loss) from
discontinued operations, net of tax.) divided by the weighted
average number of basic and diluted ordinary shares or American
depositary shares (each an "ADS"), each representing one Class A
ordinary share of the Company, on an as-converted basis.
For more information on these adjusted financial measures,
please see the section captioned under "Non-GAAP Financial
Measures" and the tables captioned "Reconciliations of GAAP and
Non-GAAP Results" set forth at the end of this release.
BUSINESS PERFORMANCE HIGHLIGHTS – CONTINUING
OPERATIONS
(in comparison to the same period of the last
fiscal year)
Overseas Schools (CATS Global Schools)
CATS Global
Schools include 6 Stafford House locations in UK and Canada, 4 CATS Colleges in US and UK,
Cambridge School of Visual & Performing Arts and 3 independent
boarding schools in UK as of August 31,
2021.
- Revenue amounted to RMB75.5
million, compared to RMB69.1
million in the same fiscal quarter last year, and accounted
for 23.6% of the total revenue for the fourth fiscal quarter.
- For the fiscal year, revenue amounted to RMB502.6 million, compared to RMB835.9 million in the same period of last
fiscal year, and accounted for 35.9% of the total revenue.
Complementary Education Services
The complementary education services business comprises of language
training, overseas study counselling, career counselling, study
tour and camps as well as international contest training and
others.
- Revenue amounted to RMB182.6
million and accounted for 57.1% of the total revenue for the
fourth fiscal quarter.
- For the fiscal year, revenue amounted to RMB625.6 million and accounted for 44.6% of the
total revenue.
Domestic Kindergartens & K-12 Operation
Services
The domestic kindergartens & K-12
operation services business comprises of for-profit kindergartens
and operation services for domestic K-12 schools including catering
and procurement services.
- Revenue amounted to RMB61.9
million and accounted for 19.3% of the total revenue for the
fourth fiscal quarter.
- For the fiscal year, revenue amounted to RMB273.6 million and accounted for 19.5% of
the total revenue.
"Despite the significant financial impact from the discontinued
operations of the affected entities in our domestic K-12 business
segment, we capped off a challenging fiscal year 2021 with a solid
fiscal fourth quarter. Our financial performance reflects the
strength of our multi-faceted growth strategy and the agility of
our diversified portfolio of businesses," said Mr. Jerry He, Executive Vice Chairman of Bright
Scholar. "For continuing operations in the quarter, we recorded a
23.3% growth in revenue and 105.6% in gross profit as compared to
the same period of fiscal year. On a full fiscal year basis, our
revenue was RMB1.4 billion, down by
5.1% as compared to fiscal year 2020."
"China's COVID-19 containment
strategy provides a stable operating environment for continuous
recovery," said Ms. Wanmei Li, Chief
Executive Officer of Domestic Kindergartens and K-12 Operation
Services. "Providing high quality education services is the key
component of our mission. Our performance demonstrates our
unwavering commitment in delivering quality education. As of
August 31, 2021, approximately 93.5%
of our 2021 graduating class were admitted to global top 50
institutions and 97.7% were admitted to global top 100
institutions. For our 2022 graduating class, we made a historical
breakthrough and obtained one offer from Princeton University as of the date of this
earnings release. We also have been leveraging our collaboration
with CATS Global School to enrich our offerings and at the same
time expand into management services to include school operation,
property management and maintenance, administrative management,
student recruiting and school branding in preparation for
future partnership with third party schools and
kindergartens."
"Bright Scholar is well positioned within an evolving regulatory
environment in China designed to
address quality, equity and all-round development in China's education system," Ms. Li
concluded.
"For Complementary Education Services, Bright Scholar is in full
alignment with the blueprint of the government policy that focuses
on all-round development for students," said Mr. Zi Chen, Chief Executive Officer. "Our strategic
roadmap is based on our conviction that both school and non-school
contexts are critical to children's learning and achievement. Over
the years, we have been expanding our complementary learning
programs including study tours and camps, and strengthened our
offerings by incorporating overseas study counseling, international
contest training and career counseling. We continue to see
tremendous market opportunities coming our way as demands for
non-school supplementary services has been growing at a phenomenal
pace."
"In the fiscal fourth quarter, revenue for Complementary
Education Services grew by 16.5% year-over-year to RMB182.6 million. The pace of growth has been
affected by the ongoing travel restrictions from regional outbreak
of pandemic in China and across
the globe. However, in light of the speedy response from
governments in offering booster shots, we are optimistic that the
pandemic will soon be contained again. In the meantime, we continue
to execute on our strategy to expand our brand awareness, broaden
our service offerings, diversify revenue sources and be ready to
seize market opportunities when operating environments return to
normal," Mr. Chen concluded.
Mr. He commented on the performance of overseas school business,
"Recovery in the overseas markets continues to be slow but steady
despite the travel restrictions that have been on and off amid the
emergence of new variants. However, our strategic initiative to
streamline the businesses, rebuild revenue growth and optimize cost
synergies through our shared-service center in UK yielded early
results. In the quarter, revenue recorded an encouraging
year-over-year increase of 9.2%."
"Overseas business which recently grouped and branded under CATS
Global Schools (CGS) is of strategic importance to us. It is one of
the key building blocks to advance our ambition as a global premier
education service company. Our long-term vision is to build a
business that scales, with market-leading global family of schools,
recognized for education excellence," Mr. He continued. "I am
pleased to report that we have completed the corporate branding
campaign with great success and has progressed to the next phase
that focuses on integration as well as establishment of high
performing operating model for our group of schools. We are
organizing our business for a post-pandemic future and to be a
future-ready company."
"We are very pleased about the operational improvements that
we've demonstrated in fiscal year 2021 and the progress made on
enhancing capabilities that provide a path toward our long-term
goals," said Mr. He. "Heading into fiscal 2022, we are optimistic
that our business will have a strong long-term recovery. Our
business fundamentals are strong, and we remain well positioned to
navigate the current operating environment. The overarching
strategy of Bright Scholar is to continue to expand our business
portfolios, strengthen operational performance across our global
businesses, optimize synergies across the network, broaden our
service offerings in complementary education business, expand into
management service for domestic K-12 schools and diversify our
revenue streams to bring the most value to our students and
stakeholders."
UNAUDITED FINANCIAL RESULTS FOR THE FOURTH FISCAL QUARTER
ENDED AUGUST 31, 2021
Revenue from Continuing Operations
Revenue for the quarter was RMB320.0
million, representing a 23.3% increase from RMB259.5 million for the same period of the last
fiscal year.
Overseas Schools: Revenue contribution for the
quarter was RMB75.5 million and
accounted for 23.6% of total revenue. It represented a 9.2%
increase from RMB69.1 million for the
same period of the last fiscal year, which accounted for 26.6% of
total revenue in that period.
Complementary Education Services: Revenue
contribution for the quarter was RMB182.6
million and accounted for 57.1% of total revenue. It
represented a 16.5% increase from RMB156.8
million for the same period of the last fiscal year, which
accounted for 60.4% of total revenue in that period.
Domestic Kindergartens & K-12 Operation
Services: Revenue contribution for the quarter was
RMB61.9 million and accounted for
19.3% of total revenue. It represented an 84.2% increase from
RMB33.6 million for the same period
of the last fiscal year, which accounted for 13.0% of total revenue
in that period.
Cost of Revenue from Continuing Operations
Cost of revenue for the quarter was RMB271.7 million, as
compared to RMB236.0 million for the same period of the
last fiscal year.
Gross Profit, Gross Margin and Adjusted Gross
Profit from Continuing Operations
Gross profit for the quarter was RMB48.3
million, representing a 105.6% increase from RMB23.5 million for the same period of the last
fiscal year. Gross margin was 15.1% for the quarter, as compared to
9.1% for the same period of the last fiscal year.
Adjusted gross profit for the quarter was RMB53.0 million, representing an 86.6% increase
from RMB28.4 million for the same
period of the last fiscal year. Adjusted gross margin was 16.6% for
the quarter, as compared to 10.9% for the same period of the last
fiscal year.
Selling, General and Administrative Expenses and
Adjusted SG&A Expenses from Continuing
Operations (6)
Total SG&A expenses for the quarter were RMB158.5 million, representing a 1.4% decrease
from RMB160.7 million for the same
period of the last fiscal year. Adjusted SG&A expenses for the
quarter were RMB158.7 million,
representing a 0.4% decrease from RMB159.3
million for the same period of the last fiscal year.
_____________________________________________________________________________________________
6. Adjusted SG&A expenses from continuing
operations is defined as selling, general and administrative
expenses from continuing operations excluding share-based
compensation expense.
Operating Loss, Operating Margin and Adjusted Operating
Loss from Continuing Operations
Operating loss for the quarter was RMB204.0 million, as compared to operating loss
of RMB128.6 million for the same
period of the last fiscal year. Operating margin was (63.7%) for
the quarter, as compared to (49.6%) for the same period of the last
fiscal year.
Adjusted operating loss for the quarter was RMB99.2 million, as compared to adjusted
operating loss of RMB109.6 million
for the same period of the last fiscal year. Adjusted operating
margin was (31.0%) for the quarter, as compared to (42.2%) for the
same period of the last fiscal year.
Net Loss and Adjusted Net
Income/Loss
Net loss for the quarter was RMB478.2 million, as compared
to net loss of RMB148.6 million for
the same period of the last fiscal year. Net loss for the quarter
consist of RMB279.3 million loss from
continuing operations and RMB198.9
million loss from discontinued operations. Due to the impact
of the Implementation Rules, which became effective from
September 1, 2021, the Affected
Entities were deconsolidated from the unaudited condensed
consolidated financial statement of the Company starting from the
end of August 31, 2021. As a result,
one-off losses upon deconsolidation of the Affected Entities
amounting to RMB261.3 million were
recognized and included in loss from discontinued operations for
the quarter. Except for one-off losses, the discontinued
operations generated RMB62.4 million
profit for the quarter.
Adjusted net loss for the quarter was RMB175.5 million, as compared to adjusted net
loss of RMB131.4 million for the same
period of the last fiscal year.
Earnings/Loss per ordinary share/ADS and Adjusted Earnings
per ordinary share/ADS
Basic and diluted net loss per ordinary share/ADS attributable
to ordinary shareholders/ADS holders from continuing operations for
the quarter were RMB2.40 and RMB2.40, respectively, as
compared to loss of RMB1.31 and
RMB1.31, respectively, for the same
period of the last fiscal year.
Basic and diluted net loss per ordinary share/ADS attributable
to ordinary shareholders/ADS holders from discontinued operations
for the quarter were RMB0.66 and
RMB0.66, respectively, as compared to
earnings of RMB0.02 and RMB0.02, respectively, for the same period of the
last fiscal year.
Adjusted basic and diluted net loss per ordinary share/ADS
attributable to ordinary shareholders/ADS holders for the quarter
were RMB1.53 and RMB1.53, respectively, as compared to
loss of RMB1.16 and RMB1.16, respectively, for the same period of the
last fiscal year.
Adjusted EBITDA
Adjusted EBITDA loss for the quarter was RMB29.8 million, compared to loss of RMB59.7 million for the same period of the last
fiscal year.
UNAUDITED FINANCIAL RESULTS for the Fiscal
year ENDED August 31,
2021
Revenue from Continuing Operations
Revenue for fiscal year 2021 was RMB1,401.8 million, as compared to RMB1,476.3 million for the last fiscal year.
Overseas Schools: Revenue contribution for the
fiscal year was RMB502.6 million, as
compared to RMB835.9 million for the
same period of the last fiscal year. It accounted for 35.9% of
total revenue, as compared to 56.6% of total revenue of the last
fiscal year.
Complementary Education Services: Revenue contribution
for the fiscal year was RMB625.6
million and accounted for 44.6% of total revenue. It
represented a 15.8% increase from RMB540.4
million for the same period of the last fiscal year, which
accounted for 36.6% of total revenue of the last fiscal year.
Domestic Kindergartens & K-12 Operation
Services: Revenue contribution for the fiscal year was
RMB273.6 million and accounted for
19.5% of total revenue. It represented a 173.4% increase from
RMB100.0 million for the same period
of the last fiscal year, which accounted for 6.8% of total revenue
of the last fiscal year.
Cost of Revenue from Continuing Operations
Cost of revenue for the fiscal year was RMB1,180.3 million,
as compared to RMB1,059.5 million for the last fiscal
year.
Gross Profit, Gross Margin and Adjusted Gross Profit from
Continuing Operations
Gross profit for the fiscal year was RMB221.5 million, as compared to RMB416.8 million for the last fiscal year. Gross
margin was 15.8% for the period, as compared to 28.2% for the last
fiscal year.
Adjusted gross profit for the fiscal year was RMB237.7 million, as compared to RMB443.6 million for the last fiscal year.
Adjusted gross margin was 17.0% for the fiscal year, as compared to
30.0% for the last fiscal year.
Selling, General and Administrative Expenses and
Adjusted SG&A Expenses from Continuing
Operations (6)
Total SG&A expenses for the fiscal year were RMB535.9 million, representing a 4.7% decrease
from RMB562.6 million for the last
fiscal year.
Adjusted SG&A expenses for the fiscal year were RMB534.0 million, representing a 6.8% decrease
from RMB573.2 million for the last
fiscal year.
______________________________________________________________________________________________
6. Adjusted SG&A expenses from continuing
operations is defined as selling, general and administrative
expenses from continuing operations excluding share-based
compensation expense.
Operating Loss, Operating Margin and Adjusted Operating Loss
from Continuing Operations
Operating loss for the fiscal year was RMB389.7 million, as compared to operating loss
of RMB123.8 million for the last
fiscal year. Operating margin was (27.8%) for the fiscal year,
as compared to (8.4%) for the last fiscal year.
Adjusted operating loss for the fiscal year was RMB271.4 million, as compared to adjusted
operating loss of RMB94.9 million for
the last fiscal year. Adjusted operating margin was (19.4%) for the
fiscal year, as compared to (6.4%) for the last fiscal year.
Net Loss and Adjusted Net
Income/Loss
Net loss for the fiscal year was RMB165.8 million, as
compared to net income of RMB164.2
million for the last fiscal year. Net loss for the fiscal
year consist of RMB535.1 million loss
from continuing operations and RMB369.3
million profit from discontinued operations. Due to the
impact of the Implementation Rules, which became effective from
September 1, 2021, the Affected
Entities were deconsolidated from the unaudited condensed
consolidated financial statement of the Company starting from the
end of August 31, 2021. As a result,
one-off losses upon deconsolidation of the Affected Entities
amounting to RMB261.3 million were
recognized and included in income from discontinued operations for
the fiscal year. Except for one-off losses, the discontinued
operations generated RMB630.6 million
profit for the fiscal year.
Adjusted net loss for the fiscal year was RMB420.2 million, as compared to adjusted net
loss of RMB283.6 for the last fiscal
year.
Earnings/Loss per ordinary share/ADS and Adjusted Earnings
per ordinary share/ADS
Basic and diluted loss per ordinary share/ADS attributable to
ordinary shareholders/ADS holders from continuing operations for
the fiscal year were RMB4.54 and RMB4.54, respectively,
as compared to loss of RMB2.64 and
RMB2.64, respectively, for the last
fiscal year.
Basic and diluted earnings per ordinary share/ADS attributable
to ordinary shareholders/ADS holders from discontinued operations
for the fiscal year was RMB4.09 and
RMB4.09, respectively as compared to
earnings of RMB3.98 and RMB3.98, respectively, for the last fiscal
year.
Adjusted basic and diluted loss per ordinary share/ADS
attributable to ordinary shareholders/ADS holders for the fiscal
year were RMB3.57 and RMB3.57, respectively, as compared
to loss of RMB2.44 and RMB2.44, respectively, for the last fiscal
year.
Adjusted EBITDA
Adjusted EBITDA loss for the fiscal year was RMB30.3 million, as compared to adjusted EBITDA
of RMB39.7 million for the last
fiscal year.
Cash and Working Capital
As of August 31, 2021, the
Company's cash and cash equivalents and restricted cash were
RMB1,515.2 million (US$234.5 million), as compared to RMB2,011.9 million as of August 31, 2020. The company also had
amount due from affected entities of RMB2,028.9 million as of August 31, 2021, most of which was settled as of
this earnings release date.
Conference Call
BEDU's management will host a conference call
at 8:00 am US Eastern Time
(9:00 pm Beijing/Hong Kong Time) on December 22, 2021 to discuss
its quarterly results and recent business activities.
To participate in the conference call, please dial the following
number five to ten minutes prior to the scheduled conference call
time:
Mainland China:
400-120-9264
Hong
Kong: 852-301-88394
Singapore: 65-6394-9910
United
States:
1-323-701-0160
Canada: 1-613-903-5719
International:
1-323-701-0160
When prompted, provide the confirmation code or event title:
Event Title: Bright Scholar Fourth Fiscal Quarter and
Fiscal Year 2021 Earnings Conference Call
Confirmation Code: 1023813
The Company will also broadcast a live audio webcast of the
conference call. The webcast will be available
at http://ir.brightscholar.com/.
Following the earnings conference call, an archive of the call
will be available by dialling:
United States Toll Free:
888-203-1112
Canada Toll
Free: 888-203-1112
International:
1-719-457-0820
Replay
Passcode:
1023813
Replay End
Date:
December 29, 2021
CONVENIENCE TRANSLATION
The Company's reporting currency is Renminbi ("RMB"). However,
periodic reports made to shareholders will include current period
amounts translated into U.S. dollars using the
prevailing exchange rates at the balance sheet date, for the
convenience of readers. Translations of balances in the
condensed consolidated balance sheets, and the related
condensed consolidated statements of operations, and cash
flows from RMB into U.S. dollars as of and for the quarter and
fiscal year 2021 ended August 31,
2021 are solely for the convenience of the readers and were
calculated at the rate of US$1.00=RMB6.4604,
representing the noon buying rate set forth in the H.10 statistical
release of the U.S. Federal Reserve Board on August 31, 2021. No representation is made that
the RMB amounts could have been, or could be, converted, realized
or settled into US$ at that rate on August
31, 2021 or at any other rate.
NON-GAAP FINANCIAL MEASURES
In evaluating our business, we consider and use certain non-GAAP
measures, including primarily adjusted EBITDA, adjusted net
income/(loss), adjusted gross profit/(loss), adjusted SG&A
expenses, adjusted operating income/(loss), adjusted net
earnings/(loss) per share attributable to ordinary shareholders
basic and diluted as supplemental measures to review and
assess our operating performance. The presentation of these
non-GAAP financial measures is not intended to be considered in
isolation or as a substitute for the financial information prepared
and presented in accordance with U.S. GAAP. We define adjusted
gross profit/(loss) from continuing operations as gross
profit/(loss) from continuing operations excluding amortization of
intangible assets, and adjusted gross margin from continuing
operations as adjusted gross profit/(loss) from continuing
operations divided by revenue from continuing operations. We
define adjusted EBITDA as net income/(loss) excluding interest
income/(expense), net, income tax expense/benefit,
depreciation and amortization, share-based compensation expense,
impairment loss on operating lease right-of-use
assets, impairment loss on goodwill and income/(loss)
from discontinued operations, net of tax. We define adjusted
net income/(loss) as net income/(loss) excluding share-based
compensation expense, amortization of intangible assets, tax effect
of amortization of intangible assets, impairment loss on
operating lease right-of-use assets, impairment loss on goodwill
and income/(loss) from discontinued operations, net of tax. We
define adjusted SG&A expenses from continuing operations as
selling, general and administration expense from continuing
operations excluding share-based compensation expense. We define
adjusted operating income/(loss) from continuing operations as net
operating income/(loss) from continuing operations excluding
share-based compensation expense and amortization of intangible
assets impairment loss on operating lease right-of-use assets and
impairment loss on goodwill. Additionally, we define adjusted net
earnings/(loss) per share attributable to ordinary shareholders,
basic and diluted, as adjusted net income/(loss) attributable
to ordinary shareholders (net income/(loss) to ordinary
shareholders excluding share-based compensation expense,
amortization of intangible assets, tax effect of amortization of
intangible assets, impairment loss on operating lease right-of-use
assets, impairment loss on goodwill and income/(loss) from
discontinued operations, net of tax) divided by the
weighted average number of basic and diluted ordinary shares or
American depositary shares, each representing one Class A ordinary
share of the Company, on an as-converted basis.
We incur amortization expense of intangible assets related to
various acquisitions that have been made in recent years. These
intangible assets are valued at the time of acquisition and are
then amortized over a period of several years after the
acquisition. We believe that exclusion of these expenses allows
greater comparability of operating results that are consistent over
time for the Company's newly-acquired and long-held business as the
related intangibles do not have significant connection to the
growth of the business. Therefore, we provide exclusion
of amortization of intangible assets to define adjusted
gross profit from continuing operations, adjusted operating
income/(loss) from continuing operations, adjusted net
income/(loss), and adjusted net earnings/(loss) per share
attributable to ordinary shareholders, basic and diluted. In
addition, due to the impact of the Implementation Rules, the
Affected Entities deconsolidated is classified as discontinued
operations, which is a non-recurring item. The exclusion
facilitates comparisons of our operating performance on a
period-to-period basis. Therefore, we provide exclusion of
income/(loss) from discontinued operations, net of tax, to define
adjusted net income/(loss), adjusted EBITDA, adjusted net
earnings/(loss) per share attributable to ordinary shareholders,
basic and diluted.
We present the non-GAAP financial measures because they are used
by our management to evaluate our operating performance and
formulate business plans. Such non-GAAP measures include adjusted
EBITDA, adjusted net income/(loss), adjusted gross
profit/(loss) from continuing operations, adjusted SG&A
expenses from continuing operations, adjusted operating
income/(loss) from continuing operations, adjusted net
earnings/(loss) per share attributable to ordinary shareholders
basic and diluted. Non-GAAP financial measures enable our
management to assess our operating results without considering the
impact of non-cash charges, including depreciation and amortization
and share-based compensation expense, and without considering the
impact of non-operating items such as interest income/(expense),
net; income tax expense/benefit; share-based compensation
expense; amortization of intangible assets, tax effect of
amortization of intangible assets, and without considering the
impact of non-recurring item, i.e. income/(loss) from discontinued
operations. We also believe that the use of these non-GAAP measures
facilitates investors' assessment of our operating performance.
The non-GAAP financial measures are not defined under U.S. GAAP
and are not presented in accordance with U.S. GAAP. The non-GAAP
financial measures have limitations as analytical tools. One of the
key limitations of using these non-GAAP financial measures is that
they do not reflect all items of income and expense that affect our
operations. Interest income/(expense), net; income tax
expense/benefit; depreciation and amortization; share-based
compensation expense; and tax effect of amortization of intangible
assets, have been and may continue to be incurred in our
business and are not reflected in the presentation of these
non-GAAP measures, including adjusted EBITDA or adjusted net
income/(loss). Further, these non-GAAP measures may differ from the
non-GAAP information used by other companies, including peer
companies, and therefore their comparability may be limited.
About Bright Scholar Education Holdings
Limited
Bright Scholar is a global premier education service company,
which primarily provides quality international education to global
students and equip them with the critical academic foundation and
skillsets necessary to succeed in the pursuit of higher education.
Bright Scholar also complements its international offerings with
Chinese government-mandated curriculum for students who wish to
maintain the option of pursuing higher education in China.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements include,
without limitation, the Company's business plans and development,
which can be identified by terminology such as "may," "will,"
"expect," "anticipate," "aim," "estimate," "intend," "plan,"
"believe," "potential," "continue," "is/are likely to" or other
similar expressions. Such statements are based upon management's
current expectations and current market and operating conditions
and relate to events that involve known or unknown risks,
uncertainties and other factors, all of which are difficult to
predict and many of which are beyond the Company's control, which
may cause the Company's actual results, performance or achievements
to differ materially from those in the forward-looking statements.
Further information regarding these and other risks, uncertainties
or factors is included in the Company's filings with the U.S.
Securities and Exchange Commission. The Company does not undertake
any obligation to update any forward-looking statement as a result
of new information, future events or otherwise, except as required
under law.
IR Contact:
GCM Strategic
Communications
Email: BEDU.IR@gcm.international
Media Contact:
Email: media@brightscholar.com
Phone: +86-757-6683-2507
BRIGHT SCHOLAR
EDUCATION HOLDINGS LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
August
31,
|
|
August
31,
|
|
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
972,803
|
|
844,684
|
|
130,748
|
|
|
Restricted
cash
|
1,037,653
|
|
669,029
|
|
103,558
|
|
|
Short-term
investments
|
13,695
|
|
-
|
|
-
|
|
|
Accounts receivable,
net
|
14,785
|
|
41,723
|
|
6,458
|
|
|
Amounts due from
related parties, net
|
16,513
|
|
15,087
|
|
2,335
|
|
|
Other receivables,
deposits and other assets, net
|
166,216
|
|
81,119
|
|
12,558
|
|
|
Inventories
|
5,993
|
|
7,579
|
|
1,173
|
|
|
Amount due from
affected entities, net
|
2,140,534
|
|
2,028,866
|
|
314,046
|
|
|
Current assets belong
to discontinued operations
|
2,998,616
|
|
-
|
|
-
|
|
Total current
assets
|
7,366,808
|
|
3,688,087
|
|
570,876
|
|
|
Restricted cash - non
current
|
1,400
|
|
1,450
|
|
224
|
|
|
Property and
equipment, net
|
557,528
|
|
519,452
|
|
80,406
|
|
|
Intangible assets,
net
|
504,515
|
|
485,822
|
|
75,200
|
|
|
Goodwill,
net
|
2,052,723
|
|
1,950,186
|
|
301,868
|
|
|
Long-term
investments
|
55,136
|
|
75,443
|
|
11,678
|
|
|
Prepayment for
construction contract
|
3,348
|
|
5,974
|
|
925
|
|
|
Deferred tax assets,
net
|
32,907
|
|
64,096
|
|
9,921
|
|
|
Other non-current
assets, net
|
6,813
|
|
68,217
|
|
10,559
|
|
|
Operating lease
right-of-use assets
|
1,816,721
|
|
1,773,773
|
|
274,561
|
|
|
Non-Current Assets
belong to discontinued operations
|
1,091,588
|
|
-
|
|
-
|
|
Total non-current
assets
|
6,122,679
|
|
4,944,413
|
|
765,342
|
TOTAL
ASSETS
|
13,489,487
|
|
8,632,500
|
|
1,336,218
|
BRIGHT SCHOLAR
EDUCATION HOLDINGS LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS-CONTINUED
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
August
31,
|
|
August
31,
|
|
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
USD
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Accounts payable
(including accounts
payable of the consolidated VIEs
without recourse to Bright Scholar of
RMB 3,834 and RMB 10,941 as of
August 31, 2020 and August 31, 2021,
respectively)
|
(68,233)
|
|
(73,411)
|
|
(11,363)
|
|
|
Amounts due to
related parties (including
amounts due to related parties of the
consolidated VIEs without recourse to
Bright Scholar of RMB 11,897 and
RMB 5,641 as of August 31, 2020 and
August 31, 2021, respectively)
|
(45,893)
|
|
(40,445)
|
|
(6,260)
|
|
|
Accrued expenses and
other current
liabilities (including accrued expenses
and other current liabilities of the
consolidated VIEs without recourse to
Bright Scholar of RMB 11,548 and
RMB 6,984 as of August 31, 2020 and
August 31, 2021, respectively)
|
(264,132)
|
|
(234,036)
|
|
(36,226)
|
|
|
Short term loan
(including short term loan
of the consolidated VIEs without
recourse to Bright Scholar of RMB nil
and RMB nil as of August 31, 2020 and
August 31, 2021, respectively)
|
(930,800)
|
|
(753,754)
|
|
(116,673)
|
|
|
Bond payable
(including bond payable of
the consolidated VIEs without recourse
to Bright Scholar of RMB nil and RMB
nil as of August 31, 2020 and August
31, 2021, respectively)
|
-
|
|
(1,836,362)
|
|
(284,249)
|
|
|
Income tax payable
(including income tax
payable of the consolidated VIEs
without recourse to Bright Scholar of
RMB 9,587 and RMB 19,091 as of
August 31, 2020 and August 31, 2021,
respectively)
|
(93,310)
|
|
(178,213)
|
|
(27,585)
|
|
|
Contract liabilities
(including contract
liabilities of the consolidated VIEs
without recourse to Bright Scholar of
RMB 134,090 and RMB 139,126 as of
August 31, 2020 and August 31, 2021,
respectively)
|
(386,493)
|
|
(425,954)
|
|
(65,933)
|
|
|
Refund liabilities
(including refund
liabilities of the consolidated VIEs
without recourse to Bright Scholar of
RMB 9,876 and RMB 10,398 as of
August 31, 2020 and August 31, 2021,
respectively)
|
(56,783)
|
|
(32,362)
|
|
(5,009)
|
|
|
Operating lease
liabilities (including
operating lease liabilities of the
consolidated VIEs without recourse to
Bright Scholar of RMB 16,648 and
RMB 12,005 as of August 31, 2020 and
August 31, 2021, respectively)
|
(196,129)
|
|
(123,215)
|
|
(19,072)
|
|
|
Amounts due to
affected entities (including
Amounts due to affected entities of the
consolidated VIEs without recourse to
Bright Scholar of RMB 14,067 and
RMB 283,270 as of August 31, 2020
and August 31, 2021, respectively)
|
(525,643)
|
|
(333,270)
|
|
(51,587)
|
|
|
Current liabilities
belong to discontinued
operations
|
(3,543,803)
|
|
-
|
|
-
|
|
Total current
liabilities
|
(6,111,219)
|
|
(4,031,022)
|
|
(623,959)
|
|
|
Contract liabilities
– non current (including
contract
liabilities – non current of the
consolidated VIEs without recourse to
Bright Scholar of RMB 1,772 and RMB
1,084 as of August 31, 2020 and August
31, 2021, respectively)
|
(1,772)
|
|
(1,421)
|
|
(220)
|
|
|
Deferred tax
liabilities, net (including
deferred tax liabilities of the
consolidated VIEs without recourse to
Bright Scholar of RMB 8,007 and RMB
9,561 as of August 31, 2020 and August
31, 2021, respectively)
|
(31,193)
|
|
(26,744)
|
|
(4,140)
|
|
|
Other non-current
liabilities due to related
parties (including non-current liabilities
due to related parties of the consolidated
VIEs without recourse to Bright Scholar
of RMB 26,843 and RMB 13,154 as of
August 31, 2020 and August 31, 2021,
respectively)
|
(26,843)
|
|
(13,154)
|
|
(2,036)
|
|
|
Other non-current
liabilities (including non-
current
liabilities of the consolidated
VIEs without recourse to Bright Scholar
of RMB 3,771 and RMB nil as of
August 31, 2020 and August 31, 2021,
respectively)
|
(12,019)
|
|
-
|
|
-
|
|
|
Bond payable
(including bond payable of
the consolidated VIEs without recourse
to Bright Scholar of RMB nil and RMB
nil as of August 31, 2020 and August
31, 2021, respectively)
|
(2,017,369)
|
|
-
|
|
-
|
|
|
Long term loan
(including long term loan of
the consolidated VIEs without recourse
to Bright Scholar of RMB nil and RMB
nil as of August 31, 2020 and August
31, 2021, respectively)
|
(419)
|
|
(616)
|
|
(95)
|
|
|
Operating lease
liabilities – non current
(including operating lease liabilities –
non current of the consolidated VIEs
without recourse to Bright Scholar of
RMB 83,077 and RMB 29,693 as of
August 31, 2020 and August 31, 2021,
respectively)
|
(1,662,928)
|
|
(1,752,667)
|
|
(271,294)
|
|
|
Non-Current
Liabilities belong to
discontinued operations
|
(501,344)
|
|
-
|
|
-
|
|
Total non-current
liabilities
|
(4,253,887)
|
|
(1,794,602)
|
|
(277,785)
|
TOTAL
LIABILITIES
|
(10,365,106)
|
|
(5,825,624)
|
|
(901,744)
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Share
capital
|
(8)
|
|
(8)
|
|
(1)
|
|
|
Additional paid-in
capital
|
(1,854,262)
|
|
(1,727,020)
|
|
(267,324)
|
|
|
Statutory
reserves
|
(65,567)
|
|
(2,531)
|
|
(392)
|
|
|
Accumulated other
comprehensive income
|
(185,371)
|
|
(168,324)
|
|
(26,055)
|
|
|
Accumulated retained
earnings
|
(632,722)
|
|
(648,944)
|
|
(100,449)
|
|
Shareholders'
equity
|
(2,737,930)
|
|
(2,546,827)
|
|
(394,221)
|
|
Non-controlling
interests
|
(386,451)
|
|
(260,049)
|
|
(40,253)
|
|
Total
equity
|
(3,124,381)
|
|
(2,806,876)
|
|
(434,474)
|
TOTAL LIABILITIES
AND EQUITY
|
(13,489,487)
|
|
(8,632,500)
|
|
(1,336,218)
|
BRIGHT SCHOLAR
EDUCATION HOLDINGS LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands, except for shares and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
August 31,
|
|
Twelve Months
Ended August 31,
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
259,509
|
|
320,021
|
|
49,536
|
|
1,476,347
|
|
1,401,780
|
|
216,980
|
Cost of
revenue
|
(236,004)
|
|
(271,701)
|
|
(42,057)
|
|
(1,059,537)
|
|
(1,180,263)
|
|
(182,692)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
23,505
|
|
48,320
|
|
7,479
|
|
416,810
|
|
221,517
|
|
34,288
|
Selling, general and
administrative expenses
|
(160,738)
|
|
(158,504)
|
|
(24,535)
|
|
(562,600)
|
|
(535,878)
|
|
(82,948)
|
Impairment loss on
goodwill impairment loss
|
-
|
|
(84,730)
|
|
(13,115)
|
|
-
|
|
(84,730)
|
|
(13,115)
|
Impairment loss on
operating lease right-of use assets
|
(12,772)
|
|
(15,575)
|
|
(2,411)
|
|
(12,772)
|
|
(15,575)
|
|
(2,411)
|
Other operating
income
|
21,378
|
|
6,508
|
|
1,007
|
|
34,761
|
|
24,969
|
|
3,865
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(128,627)
|
|
(203,981)
|
|
(31,575)
|
|
(123,801)
|
|
(389,697)
|
|
(60,321)
|
Interest expense,
net
|
(54,063)
|
|
(47,330)
|
|
(7,326)
|
|
(162,912)
|
|
(169,693)
|
|
(26,267)
|
Investment
income
|
35,576
|
|
42,169
|
|
6,527
|
|
54,166
|
|
129,575
|
|
20,057
|
Other
expenses
|
(8,112)
|
|
(3,035)
|
|
(469)
|
|
(10,364)
|
|
(10,137)
|
|
(1,569)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes and share of equity in loss of
|
(155,226)
|
|
(212,177)
|
|
(32,843)
|
|
(242,911)
|
|
(439,952)
|
|
(68,100)
|
unconsolidated
affiliates
|
|
|
|
|
|
Income tax
benefit/(expense)
|
6,015
|
|
(66,664)
|
|
(10,319)
|
|
(63,815)
|
|
(94,176)
|
|
(14,577)
|
Share of equity in
loss of unconsolidated affiliates
|
(343)
|
|
(410)
|
|
(63)
|
|
(595)
|
|
(1,018)
|
|
(158)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations
|
(149,554)
|
|
(279,251)
|
|
(43,225)
|
|
(307,321)
|
|
(535,146)
|
|
(82,835)
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) from
discontinued operations, net of tax
|
950
|
|
(198,941)
|
|
(30,794)
|
|
471,495
|
|
369,343
|
|
57,170
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
(148,604)
|
|
(478,192)
|
|
(74,019)
|
|
164,174
|
|
(165,803)
|
|
(25,665)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
attributable to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
7,093
|
|
6,875
|
|
1,064
|
|
9,557
|
|
5,622
|
|
870
|
Discontinued
operations
|
(1,859)
|
|
(120,316)
|
|
(18,624)
|
|
(6,388)
|
|
(118,620)
|
|
(18,361)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)/
incomeattributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
(156,647)
|
|
(286,126)
|
|
(44,289)
|
|
(316,878)
|
|
(540,768)
|
|
(83,705)
|
Discontinued
operations
|
2,809
|
|
(78,625)
|
|
(12,170)
|
|
477,883
|
|
487,963
|
|
75,532
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/earnings per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
—Basic
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
(1.31)
|
|
(2.40)
|
|
(0.37)
|
|
(2.64)
|
|
(4.54)
|
|
(0.70)
|
Discontinued
operations
|
0.02
|
|
(0.66)
|
|
(0.10)
|
|
3.98
|
|
4.09
|
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
—Diluted
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
(1.31)
|
|
(2.40)
|
|
(0.37)
|
|
(2.64)
|
|
(4.54)
|
|
(0.70)
|
Discontinued
operations
|
0.02
|
|
(0.66)
|
|
(0.10)
|
|
3.98
|
|
4.09
|
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in
|
|
|
|
|
|
|
|
|
|
|
|
calculating net earnings per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
—Basic
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
119,641,203
|
|
118,983,474
|
|
118,983,474
|
|
120,158,001
|
|
119,220,331
|
|
119,220,331
|
Discontinued
operations
|
119,641,203
|
|
118,983,474
|
|
118,983,474
|
|
120,158,001
|
|
119,220,331
|
|
119,220,331
|
|
|
|
|
|
—Diluted
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
119,641,203
|
|
118,983,474
|
|
118,983,474
|
|
120,158,001
|
|
119,220,331
|
|
119,220,331
|
Discontinued
operations
|
119,641,203
|
|
118,983,474
|
|
118,983,474
|
|
120,158,001
|
|
119,220,331
|
|
119,220,331
|
BRIGHT SCHOLAR
EDUCATION HOLDINGS LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
August 31,
|
|
Twelve Months
Ended August 31,
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Net cash generated
from operating activities
|
685,176
|
|
842,770
|
|
130,452
|
|
491,227
|
|
698,808
|
|
108,168
|
Net cash generated
from/(used in) investing activities
|
1,829,279
|
|
(558,856)
|
|
(86,505)
|
|
72,567
|
|
(3,079,036)
|
|
(476,601)
|
Net cash (used
in)/generated from financing activities
|
(112,211)
|
|
(468,702)
|
|
(72,550)
|
|
675,703
|
|
(446,534)
|
|
(69,119)
|
Effect of exchange
rate changes on cash
|
(70,281)
|
|
31,861
|
|
4,932
|
|
(80,574)
|
|
(82,012)
|
|
(12,695)
|
Net change in cash
and cash equivalents, and restricted cash
|
2,331,963
|
|
(152,927)
|
|
(23,671)
|
|
1,158,923
|
|
(2,908,774)
|
|
(450,247)
|
Cash and cash
equivalents, and restricted cash
at beginning of the period
|
2,091,974
|
|
1,668,090
|
|
258,202
|
|
3,265,014
|
|
4,423,937
|
|
684,778
|
Cash and cash
equivalents, and restricted cash at end of the period
|
4,423,937
|
|
1,515,163
|
|
234,531
|
|
4,423,937
|
|
1,515,163
|
|
234,531
|
BRIGHT SCHOLAR
EDUCATION HOLDINGS LIMITED
|
Reconciliations of
GAAP and Non-GAAP Results
|
(Amounts in
thousands, except for shares and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
August 31,
|
|
Twelve Months
Ended August 31,
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Gross profit from
continuing operations
|
23,505
|
|
48,320
|
|
7,479
|
|
416,810
|
|
221,517
|
|
34,288
|
Add:
Amortization of intangible assets
|
4,897
|
|
4,680
|
|
724
|
|
26,754
|
|
16,141
|
|
2,498
|
Adjusted gross
profit from continuing operations
|
28,402
|
|
53,000
|
|
8,203
|
|
443,564
|
|
237,658
|
|
36,787
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
from continuing operations
|
(128,627)
|
|
(203,981)
|
|
(31,575)
|
|
(123,801)
|
|
(389,697)
|
|
(60,321)
|
Add:
Share-based compensation expense
|
1,406
|
|
(167)
|
|
(26)
|
|
(10,631)
|
|
1,865
|
|
289
|
Add:
Amortization of intangible assets
|
4,897
|
|
4,680
|
|
724
|
|
26,754
|
|
16,141
|
|
2,498
|
Add:Impairment loss on operating lease right-of-use
assets
|
12,772
|
|
15,575
|
|
2,411
|
|
12,772
|
|
15,575
|
|
2,411
|
Add:
Impairment loss on goodwill
|
-
|
|
84,730
|
|
13,115
|
|
-
|
|
84,730
|
|
13,115
|
Adjusted operating
loss from continuing operations
|
(109,552)
|
|
(99,163)
|
|
(15,349)
|
|
(94,906)
|
|
(271,386)
|
|
(42,008)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
(148,604)
|
|
(478,192)
|
|
(74,019)
|
|
164,174
|
|
(165,803)
|
|
(25,665)
|
Add:
Share-based compensation expense
|
1,406
|
|
(167)
|
|
(26)
|
|
(10,631)
|
|
1,865
|
|
289
|
Add:
Amortization of intangible assets
|
4,897
|
|
4,680
|
|
724
|
|
26,754
|
|
16,141
|
|
2,498
|
Add: Tax
effect of amortization of intangible assets
|
(959)
|
|
(1,029)
|
|
(159)
|
|
(5,148)
|
|
(3,343)
|
|
(517)
|
Add:Impairment loss on operating lease right-of-use
assets
|
12,772
|
|
15,575
|
|
2,411
|
|
12,772
|
|
15,575
|
|
2,411
|
Add:
Impairment loss on goodwill
|
-
|
|
84,730
|
|
13,115
|
|
-
|
|
84,730
|
|
13,115
|
Less:
Loss/(income) from discontinued operations, net of tax
|
950
|
|
(198,941)
|
|
(30,794)
|
|
471,495
|
|
369,343
|
|
57,170
|
Adjusted net
loss
|
(131,438)
|
|
(175,462)
|
|
(27,160)
|
|
(283,574)
|
|
(420,178)
|
|
(65,039)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)/income
attributable to ordinary shareholders
|
(153,838)
|
|
(364,751)
|
|
(56,459)
|
|
161,005
|
|
(52,805)
|
|
(8,174)
|
Add:
Share-based compensation expense
|
1,406
|
|
(167)
|
|
(26)
|
|
(10,631)
|
|
1,865
|
|
289
|
Add:
Amortization of intangible assets
|
4,897
|
|
4,680
|
|
724
|
|
26,754
|
|
16,141
|
|
2,498
|
Add: Tax effect
of amortization of intangible assets
|
(959)
|
|
(1,029)
|
|
(159)
|
|
(5,148)
|
|
(3,343)
|
|
(517)
|
Add:Impairment
loss on operating lease right-of-use assets
|
12,772
|
|
15,575
|
|
2,411
|
|
12,772
|
|
15,575
|
|
2,411
|
Add: Impairment
loss on goodwill
|
-
|
|
84,730
|
|
13,115
|
|
-
|
|
84,730
|
|
13,115
|
Less:
Loss/(income) from discontinued operations, net of tax
|
2,809
|
|
(78,625)
|
|
(12,170)
|
|
477,883
|
|
487,963
|
|
75,532
|
Adjusted net loss
attributable to ordinary shareholders
|
(138,531)
|
|
(182,337)
|
|
(28,224)
|
|
(293,131)
|
|
(425,800)
|
|
(65,909)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
(148,604)
|
|
(478,192)
|
|
(74,019)
|
|
164,174
|
|
(165,803)
|
|
(25,665)
|
Add:
Interest expense, net
|
54,063
|
|
47,330
|
|
7,326
|
|
162,912
|
|
169,693
|
|
26,267
|
Add:
Income tax (benefit)/expense
|
(6,015)
|
|
66,664
|
|
10,319
|
|
63,815
|
|
94,176
|
|
14,577
|
Add:
Depreciation and amortization
|
27,629
|
|
35,325
|
|
5,468
|
|
118,160
|
|
138,847
|
|
21,492
|
Add:
Share-based compensation expense
|
1,406
|
|
(167)
|
|
(26)
|
|
(10,631)
|
|
1,865
|
|
289
|
Add:Impairment loss on operating lease right-of-use
assets
|
12,772
|
|
15,575
|
|
2,411
|
|
12,772
|
|
15,575
|
|
2,411
|
Add:
Impairment loss on goodwill
|
-
|
|
84,730
|
|
13,115
|
|
-
|
|
84,730
|
|
13,115
|
Less:
(Loss)/income from discontinued operations, net of tax
|
950
|
|
(198,941)
|
|
(30,794)
|
|
471,495
|
|
369,343
|
|
57,170
|
Adjusted
EBITDA
|
(59,699)
|
|
(29,794)
|
|
(4,612)
|
|
39,707
|
|
(30,260)
|
|
(4,684)
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative expenses from continuing
operations
|
(160,738)
|
|
(158,504)
|
|
(24,535)
|
|
(562,600)
|
|
(535,878)
|
|
(82,948)
|
Add:
Share-based compensation expense
|
1,406
|
|
(167)
|
|
(26)
|
|
(10,631)
|
|
1,865
|
|
289
|
Adjusted selling,
general and administrative expenses from continuing
operations
|
(159,332)
|
|
(158,671)
|
|
(24,561)
|
|
(573,231)
|
|
(534,013)
|
|
(82,659)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in calculating earnings per ordinary
share:
|
|
|
|
|
|
|
|
|
|
|
|
—Basic and
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
119,641,203
|
|
118,983,474
|
|
118,983,474
|
|
120,158,001
|
|
119,220,331
|
|
119,220,331
|
Discontinued
operations
|
119,641,203
|
|
118,983,474
|
|
118,983,474
|
|
120,158,001
|
|
119,220,331
|
|
119,220,331
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss
per share attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
—Basic
|
(1.16)
|
|
(1.53)
|
|
(0.24)
|
|
(2.44)
|
|
(3.57)
|
|
(0.55)
|
—Diluted
|
(1.16)
|
|
(1.53)
|
|
(0.24)
|
|
(2.44)
|
|
(3.57)
|
|
(0.55)
|
View original
content:https://www.prnewswire.com/news-releases/bright-scholar-announces-unaudited-financial-results-for-the-fourth-fiscal-quarter-and-fiscal-year-2021-301449467.html
SOURCE Bright Scholar Education Holdings Ltd.