BEIJING, April 29, 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 fourth quarter
and the fiscal year ended February 28,
2022.
Highlights for the Fourth Quarter of Fiscal Year 2022
- Net revenues decreased by 60.3% year-over-year to US$541.2 million from US$1,362.7 million in the same period of the
prior year.
- Income from operations was US$0.6
million, compared to loss from operations of US$297.2 million in the same period of the prior
year.
- Non-GAAP income from operations, which excluded share-based
compensation expenses, was US$0.8
million, compared to non-GAAP loss from operations of
US$216.9 million in the same period
of the prior year.
- Net loss attributable to TAL was US$108.1 million, compared to net loss
attributable to TAL of US$169.0
million in the same period of the prior year.
- Non-GAAP net loss attributable to TAL, which excluded
share-based compensation expenses, was US$108.0 million, compared to non-GAAP net loss
attributable to TAL of US$88.7
million in the same period of the prior year.
- Basic and diluted net loss per American Depositary Share
("ADS") were both US$0.17. Non-GAAP
basic and diluted net loss per ADS, which excluded share-based
compensation expenses, were both US$0.17. Three ADSs represent one Class A common
share.
- Cash, cash equivalents and short-term investments totaled
US$2,708.7 million as of February 28, 2022, compared to US$5,937.5 million as of February 28, 2021.
Highlights for the Fiscal Year Ended February 28, 2022
- Net revenues decreased by 2.3% year-over-year to US$4,390.9 million from US$4,495.8 million in fiscal year 2021.
- Loss from operations was US$614.5
million, compared to loss from operations of US$438.2 million in fiscal year 2021.
- Non-GAAP loss from operations, which excluded share-based
compensation expenses, was US$439.7
million, compared to non-GAAP loss from operations of
US$233.3 million in fiscal year
2021.
- Net loss attributable to TAL was US$1,136.1 million, compared to net loss
attributable to TAL of US$116.0
million in fiscal year 2021.
- Non-GAAP net loss attributable to TAL, which excluded
share-based compensation expenses, was US$961.3 million, compared to non-GAAP net income
attributable to TAL of US$89.0
million in fiscal year 2021.
- Basic and diluted net loss per ADS were both US$1.76. Non-GAAP basic and diluted net loss per
ADS, excluding share-based compensation expenses, were both
US$1.49.
Financial and
Operating Data——Fourth Quarter and Fiscal Year 2022
|
(In US$ thousands,
except per ADS data and percentages)
|
|
|
Three Months
Ended
|
|
February
28,
|
|
2021
|
2022
|
Pct.
Change
|
Net revenues
|
1,362,689
|
541,152
|
(60.3%)
|
Operating
(loss)/income
|
(297,210)
|
644
|
(100.2%)
|
Non-GAAP operating
(loss)/income
|
(216,872)
|
779
|
(100.4%)
|
Net loss attributable
to TAL
|
(169,002)
|
(108,123)
|
(36.0%)
|
Non-GAAP net loss
attributable to TAL
|
(88,664)
|
(107,988)
|
21.8%
|
Net loss per ADS
attributable to TAL – basic
|
(0.27)
|
(0.17)
|
(37.0%)
|
Net loss per ADS
attributable to TAL – diluted
|
(0.27)
|
(0.17)
|
(37.0%)
|
Non-GAAP net loss per
ADS attributable to TAL – basic
|
(0.14)
|
(0.17)
|
20.0%
|
Non-GAAP net loss per
ADS attributable to TAL – diluted
|
(0.14)
|
(0.17)
|
20.0%
|
|
|
|
|
|
Fiscal Year
Ended
|
|
February
28,
|
|
2021
|
2022
|
Pct.
Change
|
Net revenues
|
4,495,755
|
4,390,907
|
(2.3%)
|
Operating
loss
|
(438,224)
|
(614,516)
|
40.2%
|
Non-GAAP operating
loss
|
(233,279)
|
(439,684)
|
88.5%
|
Net loss attributable
to TAL
|
(115,990)
|
(1,136,115)
|
879.5%
|
Non-GAAP net
income/(loss) attributable to TAL
|
88,955
|
(961,283)
|
(1,180.6%)
|
Net loss per ADS
attributable to TAL – basic
|
(0.19)
|
(1.76)
|
828.3%
|
Net loss per ADS
attributable to TAL – diluted
|
(0.19)
|
(1.76)
|
828.3%
|
Non-GAAP net
income/(loss) per ADS attributable to TAL – basic
|
0.15
|
(1.49)
|
(1,124.2%)
|
Non-GAAP net
income/(loss) per ADS attributable to TAL – diluted
|
0.14
|
(1.49)
|
(1,162.6%)
|
Financial Results for the Fourth Quarter of Fiscal Year
2022
Net Revenues
In the fourth quarter of fiscal year 2022, TAL reported net
revenues of US$541.2 million,
representing a 60.3% decrease from US$1,362.7 million in the fourth quarter of
fiscal year 2021.
Operating Costs and Expenses
In the fourth quarter of fiscal year 2022, operating costs and
expenses were US$546.3 million,
representing a 67.1% decrease from US$1,662.0 million in the fourth quarter of
fiscal year 2021. Non-GAAP operating costs and expenses, which
excluded share-based compensation expenses, were US$546.2 million, representing a 65.5% decrease
from US$1,581.7 million in the fourth
quarter of fiscal year 2021.
Cost of revenues decreased by 65.9% to US$198.1 million from US$581.4 million in the fourth quarter of fiscal
year 2021. Non-GAAP cost of revenues, which excluded share-based
compensation expenses, decreased by 65.9% to US$197.9 million, from US$580.8 million in the fourth quarter of fiscal
year 2021.
Selling and marketing expenses decreased by 84.3% to
US$103.5 million from US$660.5 million in the fourth quarter of fiscal
year 2021. Non-GAAP selling and marketing expenses, which excluded
share-based compensation expenses, decreased by 82.2% to
US$113.1 million, from US$635.5 million in the fourth quarter of fiscal
year 2021.
General and administrative expenses decreased by 39.2% to
US$212.1 million from US$348.6 million in the fourth quarter of fiscal
year 2021. Non-GAAP general and administrative expenses, which
excluded share-based compensation expenses, decreased by 31.1% to
US$202.5 million, from US$293.9 million in the fourth quarter of fiscal
year 2021.
Total share-based compensation expenses allocated to the related
operating costs and expenses decreased by 99.8% to US$0.1 million in the fourth quarter of fiscal
year 2022 from US$80.3 million in the
same period of fiscal year 2021.
Impairment loss on intangible assets and goodwill was
US$32.6 million for the fourth
quarter of fiscal year 2022, compared to US$71.5 million for the fourth quarter of fiscal
year 2021.
Gross
Profit
Gross profit decreased by 56.1% to US$343.1 million from US$781.2 million in the fourth quarter of fiscal
year 2021.
(Loss)/Income from Operations
Income from operations was US$0.6
million in the fourth quarter of fiscal year 2022, compared
to loss from operations of US$297.2
million in the fourth quarter of fiscal year 2021. Non-GAAP
income from operations, which excluded share-based compensation
expenses, was US$0.8 million,
compared to Non-GAAP loss from operations of US$216.9 million in the same period of the prior
year.
Other Income/ (Expense)
Other expense was US$0.7 million
for the fourth quarter of fiscal year 2022, compared to other
income of US$7.9 million in the
fourth quarter of fiscal year 2021.
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was US$97.8 million for the fourth quarter of fiscal
year 2022, compared to US$6.2 million
for the fourth quarter of fiscal year 2021.
Income Tax Benefit/ (Expense)
Income tax expense was US$29.9
million in the fourth quarter of fiscal year 2022, compared
to US$80.5 million of income tax
benefit in the fourth quarter of fiscal year 2021.
Net Loss Attributable to TAL Education Group
Net loss attributable to TAL was US$108.1
million in the fourth quarter of fiscal year 2022, compared
to net loss attributable to TAL of US$169.0
million in the fourth quarter of fiscal year 2021. Non-GAAP
net loss attributable to TAL, which excluded share-based
compensation expenses, was US$108.0
million, compared to Non-GAAP net loss attributable to TAL
of US$88.7 million in the fourth
quarter of fiscal year 2021.
Basic and Diluted Net Loss per ADS
Basic and diluted net loss per ADS were both US$0.17 in the fourth quarter of fiscal year
2022. Non-GAAP basic and diluted net loss per ADS, which excluded
share-based compensation expenses, were both US$0.17, in the fourth quarter of fiscal year
2022.
Cash, Cash Equivalents, and Short-Term
Investments
As of February 28, 2022, the
Company had US$1,638.2 million of
cash and cash equivalents and US$1,070.5
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.
Deferred Revenue
The Company's deferred revenue balance was US$187.7 million, compared to US$1,417.5 million as of February 28, 2021, representing a year-over-year
decrease of 87.2%.
Financial Results for the Fiscal Year Ended February 28, 2022
Net Revenues
For fiscal year 2022, TAL reported net revenues of US$4,390.9 million, representing a 2.3% decrease
from US$4,495.8 million in the fiscal
year 2021.
Operating Costs and Expenses
In the fiscal year 2022, operating costs and expenses were
US$5,026.2 million, a 1.5% increase
from US$4,953.5 million in the fiscal
year 2021. Non-GAAP operating costs and expenses, which excluded
share-based compensation expenses, were US$4,851.4 million, a 2.2% increase from
US$4,748.5 million in the fiscal year
2021.
Cost of revenues grew by 7.6% to US$2,203.3 million from US$2,048.6 million in the fiscal year 2021.
Non-GAAP cost of revenues, which excluded share-based compensation
expenses, increased by 7.6% to US$2,202.2
million from US$2,046.8
million in the fiscal year 2021.
Selling and marketing expenses decreased by 33.4% to
US$1,118.1 million from US$1,680.1 million in the fiscal year 2021.
Non-GAAP selling and marketing expenses, which excluded share-based
compensation expenses, decreased by 34.4% to US$1,064.3 million from US$1,623.4 million in the fiscal year 2021.
General and administrative expenses increased by 7.4% to
US$1,199.7 million from US$1,117.3 million in the fiscal year 2021.
Non-GAAP general and administrative expenses, which excluded
share-based compensation expenses, increased by 11.2% to
US$1,079.9 million from US$970.8 million in the fiscal year 2021.
Total share-based compensation expenses allocated to the related
operating costs and expenses decreased by 14.7% to US$174.8 million in the fiscal year 2022 from
US$204.9 million in fiscal year
2021.
Impairment loss on intangible assets and goodwill was
US$505.1 million for the fiscal year
2022, compared to US$107.5 million
for the fiscal year 2021.
Gross Profit
Gross profit decreased by 10.6% to US$2,187.6 million from US$2,447.2 million in the fiscal year 2021.
Loss from Operations
Loss from operations was US$614.5
million in the fiscal year 2022, compared to loss from
operations of US$438.2 million in the
prior year. Non-GAAP loss from operations, which excluded
share-based compensation expenses, was US$439.7 million for the fiscal year 2022,
compared to non-GAAP loss from operations of US$233.3 million in the fiscal year 2021.
Other Income
Other income was US$17.0 million
for the fiscal year 2022. Other income was US$140.9 million for the fiscal year 2021.
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was US$275.9 million for the fiscal year 2022,
compared to US$24.6 million for the
fiscal year 2021.
Income Tax Benefit/ (Expense)
Income tax expense was US$397.0
million in the fiscal year 2022, compared to US$69.9 million of income tax benefit in the
fiscal year 2021.
Net (Loss)/Income Attributable to TAL Education
Group
Net loss attributable to TAL was US$1,136.1 million in the fiscal year 2022,
compared to net loss attributable to TAL of US$116.0 million in the fiscal year 2021.
Non-GAAP net loss attributable to TAL, which excluded share-based
compensation expenses, was US$961.3
million, compared to Non-GAAP net income attributable to TAL
of US$89.0 million in the fiscal year
2021.
Basic and Diluted Net Loss per ADS
Basic and diluted net loss per ADS were both US$1.76 in the fiscal year 2022. Non-GAAP basic
and Non-GAAP diluted net loss per ADS, which excluded share-based
compensation expenses, were both US$1.49.
Extension of Share Repurchase Program by the Company
TAL's board of directors (the "Board") has authorized to extend
its share repurchase program launched in April 2021 by 12 months. Since launch, the
Company has repurchased approximately US$196.3 million of its American depositary
shares under the share repurchase program. Pursuant to the extended
share repurchase program, the Company may repurchase up to
approximately US$803.7 million of its
common shares through April 30, 2023.
The share repurchases may be effected from time to time on the open
market at prevailing market prices, in privately negotiated
transactions, in block trades and/or through other legally
permissible means, depending on market conditions and will be
implemented in accordance with applicable rules and regulations.
The Company expects to fund the repurchases out of its existing
cash balance.
Separately, the Company was also informed by senior management
of the Company of their intention to use their personal funds to
purchase up to an aggregate of US$100
million worth of the Company's common shares during a 12-month period
following today, pursuant and subject to applicable laws and the
Company's securities trading policy. The proposed share purchases
may be made from time to time in the open market at prevailing
market prices, in privately negotiated transactions, in block
trades and/or through other legally permissible means, depending on
market conditions and in accordance with applicable rules and
regulations.
Changes to Board Composition
TAL has announced the appointment of Ms. Janet Yan Feng to the Board and the resignation
of Ms. Jane Jie Sun from the Board,
both effective April 29, 2022. Ms.
Feng will serve as the chairperson of the audit committee of the
Board, a member of the compensation committee of the Board, and a
member of the nominating and corporate governance committee of the
Board.
"We are delighted to welcome Janet to the Board," said Mr.
Bangxin Zhang, Founder, Director and Chief Executive Officer of
TAL, "We believe Janet will bring significant value to TAL as we
continue to transform our business. On behalf of the Board and the
Company, I would also like thank Jane for her over-a-decade of
service."
Ms. Janet Yan Feng currently
serves as a senior vice president and the chief executive officer
of the financial services business unit of Trip.com Group Limited
(Nasdaq: TCOM), where she has held a number of general management
and finance positions since 2004.
Prior to that, Ms. Feng served as a senior audit manager at
PricewaterhouseCoopers Zhong Tian LLP from 2000 to 2004. Ms. Feng
received her MBA degree in 2008 and bachelor's degree in 2000 from
Shanghai Jiao Tong University. Further, effective on April 29, Mr. Bangxin Zhang will serve as the
chairman of the Board, whereas Mr. Yunfeng
Bai will continue serving as a director.
Conference Call
The Company will host a conference call and live webcast to
discuss its financial results for the fourth fiscal quarter of
fiscal year 2022 ended February 28,
2022 at 8:00 a.m. Eastern Time
on April 29, 2022 (8:00 p.m. Beijing time on April
29, 2022).
Please note that you will need to pre-register for conference
call participation, using the link provided below. Upon
registering, you will be sent participant dial-in numbers, Direct
Event passcode and unique registrant ID by email.
Conference call registration link:
http://apac.directeventreg.com/registration/event/5787527. It will
automatically direct you to the registration page of "TAL Education
Group Fourth Quarter of Fiscal Year 2022 Earnings Conference Call",
where you may fill in your details for RSVP. When you are requested
to submit a participant conference ID, please enter the number
"5787527".
In the 10 minutes prior to the call start time, you may use the
conference access information (including dial-in number(s), Direct
Event passcode and unique registrant ID) provided in the
confirmation email that you have received following your
pre-registration.
A live and archived webcast of the conference call will be
available on the Investor Relations section of TAL's website at
https://ir.100tal.com/.
A telephone replay of the conference call will be available
through 9:59 a.m. on May 6, 2022, U.S. Eastern time (9:59 p.m. Beijing time on May
6, 2022).The dial-in details for the replay are as
follows:
- U.S. toll
free:
+1-855-452-5696
- Hong Kong toll
free:
800-963-117
- International
toll:
+61-2-8199-0299
Conference ID:
5787527
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.
For further information, please contact:
Jackson Ding
Investor Relations
TAL Education Group
Tel: +86 10 5292 6669-8809
Email: ir@tal.com
TAL EDUCATION
GROUP
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands of
U.S. dollars)
|
|
|
As
of February 28,
2021
|
|
As
of February 28,
2022
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
3,242,953
|
|
$
1,638,189
|
Restricted
cash-current
|
1,758,937
|
|
755,646
|
Short-term
investments
|
2,694,555
|
|
1,070,535
|
Inventory
|
38,675
|
|
21,830
|
Amounts due from
related parties-current
|
2,964
|
|
919
|
Income tax
receivables
|
15,641
|
|
19,504
|
Prepaid expenses
and other current assets
|
403,110
|
|
124,764
|
Total current
assets
|
8,156,835
|
|
3,631,387
|
Restricted
cash-non-current
|
16,094
|
|
287,951
|
Property and
equipment, net
|
511,415
|
|
281,226
|
Deferred tax
assets
|
317,189
|
|
6,747
|
Rental
deposits
|
102,555
|
|
10,770
|
Intangible
assets, net
|
66,041
|
|
1,696
|
Land use right,
net
|
216,702
|
|
217,708
|
Goodwill
|
454,413
|
|
-
|
Amounts due
from related parties-non-current
|
-
|
|
77
|
Long-term
investments
|
667,636
|
|
412,476
|
Long-term
prepayments and other non-current assets
|
57,694
|
|
5,418
|
Operating
lease right-of-use assets
|
1,545,735
|
|
227,072
|
Total
assets
|
$
12,112,309
|
|
$
5,082,528
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$ 353,778
|
|
$ 89,838
|
Deferred
revenue-current
|
1,387,493
|
|
187,718
|
Amounts due to
related parties-current
|
3,488
|
|
205
|
Accrued expenses
and other current liabilities
|
911,283
|
|
509,461
|
Income tax
payable
|
65,138
|
|
49,257
|
Current portion
of long-term debt
|
270,000
|
|
-
|
Operating lease
liabilities, current portion
|
382,671
|
|
66,105
|
Total current
liabilities
|
3,373,851
|
|
902,584
|
Deferred
revenue-non-current
|
30,005
|
|
14
|
Deferred tax
liabilities
|
10,333
|
|
1,680
|
Bond
payable
|
2,300,000
|
|
-
|
Operating lease
liabilities, non-current portion
|
1,193,564
|
|
175,988
|
Total
liabilities
|
6,907,753
|
|
1,080,266
|
|
|
|
|
Mezzanine
equity
|
|
|
|
Redeemable
non-controlling interests
|
1,775
|
|
-
|
Equity
|
|
|
|
Class A common
shares
|
148
|
|
167
|
Class B common
shares
|
67
|
|
49
|
Additional paid-in
capital
|
4,369,125
|
|
4,358,265
|
Statutory
reserve
|
121,285
|
|
154,362
|
Retained
earnings/(accumulated deficit)
|
624,883
|
|
(544,309)
|
Accumulated other
comprehensive income
|
86,321
|
|
61,617
|
Total TAL Education
Group's equity
|
5,201,829
|
|
4,030,151
|
Noncontrolling
interest
|
952
|
|
(27,889)
|
Total
equity
|
5,202,781
|
|
4,002,262
|
Total liabilities,
mezzanine equity and equity
|
$
12,112,309
|
|
$
5,082,528
|
|
|
|
|
|
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
February 28,
|
|
For the Fiscal Year
Ended February
28,
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
Net
revenues
|
$
1,362,689
|
|
$ 541,152
|
|
$
4,495,755
|
|
$
4,390,907
|
Cost of revenues (note
1)
|
581,449
|
|
198,084
|
|
2,048,561
|
|
2,203,336
|
Gross profit
|
781,240
|
|
343,068
|
|
2,447,194
|
|
2,187,571
|
Operating expenses
(note 1)
|
|
|
|
|
|
|
|
Selling and
marketing
|
660,452
|
|
103,475
|
|
1,680,050
|
|
1,118,141
|
General and
administrative
|
348,605
|
|
212,113
|
|
1,117,324
|
|
1,199,708
|
Impairment loss
on intangible
assets and
goodwill
|
71,504
|
|
32,613
|
|
107,535
|
|
505,050
|
Total operating
expenses
|
1,080,561
|
|
348,201
|
|
2,904,909
|
|
2,822,899
|
Government
subsidies
|
2,111
|
|
5,777
|
|
19,491
|
|
20,812
|
(Loss)/income from
operations
|
(297,210)
|
|
644
|
|
(438,224)
|
|
(614,516)
|
Interest
income
|
35,167
|
|
18,535
|
|
114,232
|
|
103,179
|
Interest
expense
|
(7,568)
|
|
-
|
|
(16,946)
|
|
(7,871)
|
Other
income/(expense)
|
7,930
|
|
(661)
|
|
140,878
|
|
16,950
|
Impairment loss on
long-term
investments
|
(6,206)
|
|
(97,809)
|
|
(24,563)
|
|
(275,872)
|
Loss before income
tax
benefit/(expense) and income from
equity method investments
|
(267,887)
|
|
(79,291)
|
|
(224,623)
|
|
(778,130)
|
Income tax
benefit/(expense)
|
80,453
|
|
(29,872)
|
|
69,897
|
|
(396,992)
|
Income from equity
method
investments
|
5,324
|
|
316
|
|
11,676
|
|
10,787
|
Net
Loss
|
$
(182,110)
|
|
$
(108,847)
|
|
$
(143,050)
|
|
$
(1,164,335)
|
Add: Net loss
attributable to
noncontrolling interest
|
13,108
|
|
724
|
|
27,060
|
|
28,220
|
Total net loss
attributable to TAL
Education Group
|
$
(169,002)
|
|
$
(108,123)
|
|
$
(115,990)
|
|
$
(1,136,115)
|
Net loss per common
share
|
|
|
|
|
|
|
|
Basic
|
$ (0.80)
|
|
$ (0.50)
|
|
$ (0.57)
|
|
$ (5.29)
|
Diluted
|
(0.80)
|
|
(0.50)
|
|
(0.57)
|
|
(5.29)
|
Net loss per ADS
(note 2)
|
|
|
|
|
|
|
|
Basic
|
$ (0.27)
|
|
$ (0.17)
|
|
$ (0.19)
|
|
$ (1.76)
|
Diluted
|
(0.27)
|
|
(0.17)
|
|
(0.19)
|
|
(1.76)
|
Weighted average shares
used in
calculating net loss per common share
|
|
|
|
|
|
|
|
Basic
|
212,209,608
|
|
215,454,363
|
|
203,603,391
|
|
214,825,470
|
Diluted
|
212,209,608
|
|
215,454,363
|
|
203,603,391
|
|
214,825,470
|
Note1: Share-based
compensation expenses are included in the operating costs and
expenses as follows:
|
|
|
For the Three
Months
|
|
For the Fiscal
Year
|
|
Ended February
28,
|
Ended February
28,
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
Cost of
revenues
|
$ 645
|
|
$ 138
|
|
$ 1,803
|
|
$ 1,134
|
|
Selling and marketing
expenses
|
24,965
|
|
(9,590)
|
|
56,609
|
|
53,850
|
|
General and
administrative expenses
|
54,728
|
|
9,587
|
|
146,533
|
|
119,848
|
|
Total
|
$ 80,338
|
|
$ 135
|
|
$ 204,945
|
|
$ 174,832
|
|
|
|
|
|
|
Note 2: Three ADSs
represent one Class A common Share.
|
|
|
|
|
TAL EDUCATION
GROUP
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF
|
COMPREHENSIVE
LOSS
|
(In thousands of
U.S. dollars)
|
|
|
For the Three Months
Ended February
28,
|
|
For the Fiscal Year
Ended February
28,
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
|
|
|
|
|
|
|
Net
loss
|
$
(182,110)
|
|
$
(108,847)
|
|
$
(143,050)
|
|
$
(1,164,335)
|
Other comprehensive
income/(loss), net of tax
|
28,664
|
|
(7,533)
|
|
116,498
|
|
(25,325)
|
Comprehensive
loss
|
(153,446)
|
|
(116,380)
|
|
(26,552)
|
|
(1,189,660)
|
Add:
Comprehensive loss
attributable to noncontrolling
interest
|
12,924
|
|
986
|
|
25,796
|
|
28,841
|
Comprehensive
loss attributable
to TAL Education Group
|
$
(140,522)
|
|
$
(115,394)
|
|
$ (756)
|
|
$
(1,160,819)
|
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 February
28,
|
|
For the Fiscal
Year
Ended February 28,
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$ 581,449
|
|
$ 198,084
|
|
$
2,048,561
|
|
$
2,203,336
|
Share-based
compensation expense
in cost of revenues
|
645
|
|
138
|
|
1,803
|
|
1,134
|
Non-GAAP cost of
revenues
|
580,804
|
|
197,946
|
|
2,046,758
|
|
2,202,202
|
|
|
|
|
|
|
|
|
Selling and
marketing expenses
|
660,452
|
|
103,475
|
|
1,680,050
|
|
1,118,141
|
Share-based
compensation expense
in selling and marketing expenses
|
24,965
|
|
(9,590)
|
|
56,609
|
|
53,850
|
Non-GAAP selling and
marketing
expenses
|
635,487
|
|
113,065
|
|
1,623,441
|
|
1,064,291
|
|
|
|
|
|
|
|
|
General and
administrative
expenses
|
348,605
|
|
212,113
|
|
1,117,324
|
|
1,199,708
|
Share-based
compensation expense
in general and administrative
expenses
|
54,728
|
|
9,587
|
|
146,533
|
|
119,848
|
Non-GAAP general
and
administrative expenses
|
293,877
|
|
202,526
|
|
970,791
|
|
1,079,860
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
1,662,010
|
|
546,285
|
|
4,953,470
|
|
5,026,235
|
Share-based
compensation expense
in operating costs and expenses
|
80,338
|
|
135
|
|
204,945
|
|
174,832
|
Non-GAAP operating
costs and
expenses
|
1,581,672
|
|
546,150
|
|
4,748,525
|
|
4,851,403
|
|
|
|
|
|
|
|
|
(Loss)/income from
operations
|
(297,210)
|
|
644
|
|
(438,224)
|
|
(614,516)
|
Share based
compensation expenses
|
80,338
|
|
135
|
|
204,945
|
|
174,832
|
Non-GAAP
(loss)/income from
operations
|
(216,872)
|
|
779
|
|
(233,279)
|
|
(439,684)
|
|
|
|
|
|
|
|
|
Net loss
attributable to TAL
Education Group
|
(169,002)
|
|
(108,123)
|
|
(115,990)
|
|
(1,136,115)
|
Share based
compensation expenses
|
80,338
|
|
135
|
|
204,945
|
|
174,832
|
Non-GAAP net
(loss)/income
attributable to TAL Education
Group
|
$
(88,664)
|
|
$
(107,988)
|
|
$
88,955
|
|
$
(961,283)
|
Net loss per
ADS
|
|
Basic
|
$ (0.27)
|
|
$ (0.17)
|
|
$ (0.19)
|
|
$ (1.76)
|
Diluted
|
(0.27)
|
|
(0.17)
|
|
(0.19)
|
|
(1.76)
|
Non-GAAP Net (loss)/
income per
ADS
|
|
|
|
|
|
|
|
Basic
|
$ (0.14)
|
|
$ (0.17)
|
|
$ 0.15
|
|
$ (1.49)
|
Diluted
|
(0.14)
|
|
(0.17)
|
|
0.14
|
|
(1.49)
|
ADSs used in
calculating loss per
ADS
|
|
|
|
|
|
|
|
Basic
|
636,628,824
|
|
646,363,089
|
|
610,810,173
|
|
644,476,410
|
Diluted
|
636,628,824
|
|
646,363,089
|
|
610,810,173
|
|
644,476,410
|
ADSs used in
calculating Non-
GAAP net (loss)/ income per ADS
|
|
|
|
|
|
|
|
Basic
|
636,628,824
|
|
646,363,089
|
|
610,810,173
|
|
644,476,410
|
Diluted
|
636,628,824
|
|
646,363,089
|
|
633,722,700
|
|
644,476,410
|
View original
content:https://www.prnewswire.com/news-releases/tal-education-group-announces-unaudited-financial-results-for-the-fourth-fiscal-quarter-and-the-fiscal-year-2022-301536101.html
SOURCE TAL Education Group