Bright Scholar Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2024
Gross Profit from continuing operations increased 7.7% YoY and gross margin from continuing operations grew 2.3 ppts for fiscal year 2024
Management to hold a conference call today at 7:00 a.m. Eastern Time
CAMBRIDGE, England and FOSHAN, China, Nov. 25, 2024 /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 its fourth quarter and fiscal year 2024 ended August 31, 2024.
FOURTH QUARTER OF FISCAL 2024 FINANCIAL HIGHLIGHTS
-- Revenue from continuing operations was RMB358.3 million, compared to
RMB442.2 million for the same quarter last fiscal year.
-- Revenue from Overseas Schools was RMB185.1 million, representing a 0.2%
increase from RMB184.8 million for the same quarter last fiscal year.
-- Loss from continuing operations was RMB954.8 million, compared to
RMB285.1 million for the same quarter last fiscal year. Adjusted net
loss([1] )narrowed by 24.3% to RMB92.0 million from RMB121.4 million for
the same quarter last fiscal year.
Revenue from continuing operations by Segment
(RMB in millions except for For the fourth quarter
ended YoY % of total
percentage) revenue in
August 31, % Change F4Q2024
2024 2023
Overseas Schools
185.1 184.8 0.2 % 51.7 %
Complementary Education
Services[2]
129.8 161.7 -19.7 % 36.2 %
Domestic Kindergartens & K-
12 Operation Services[3]
43.4 95.7 -54.7 % 12.1 %
Total 358.3 442.2 -19.0 % 100.0 %
[1]. Adjusted net income/(loss) is defined as net income/(loss) excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on property and equipment, impairment loss on the long-term investments, and income/(loss) from discontinued operations, net of tax.
[2]. The Complementary Education Services business comprises, overseas study counselling, art training, camps and others.
[3]. The Domestic Kindergartens & K-12 Operation Services business comprises operation services for students of domestic K-12 schools, including catering and procurement services.
For more information on these adjusted financial measures, please see the section captioned "Non-GAAP Financial Measures" and the tables captioned "Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this release.
FISCAL YEAR 2024 FINANCIAL HIGHLIGHTS
-- Revenue from continuing operations was RMB1,755.2 million, compared to
RMB1,772.1 million for the last fiscal year.
-- Revenue from Overseas Schools was RMB951.2 million, representing an
increase of 17.5% from the last fiscal year.
-- Gross profit from continuing operations was RMB503.6 million,
representing an increase of 7.7% from RMB467.4 million for the last
fiscal year. Gross margin from continuing operations increased to 28.7%
from 26.4% for the last fiscal year.
-- Loss from continuing operations was RMB869.1 million, compared to
RMB358.9 million for the last fiscal year. Adjusted net income was
RMB1.1 million, compared to adjusted net loss of RMB192.6 for the last
fiscal year.
Revenue from continuing operations by Segment
(RMB in millions except for For the fiscal
year YoY % of total
percentage) ended revenue in FY24
% Change
August 31,
2024 2023
Overseas Schools
951.2 809.5 17.5 % 54.2 %
Complementary Education
Services
495.1 519.2 -4.7 % 28.2 %
Domestic Kindergartens & K-
12 Operation Services
308.9 443.4 -30.3 % 17.6 %
Total 1,755.2 1,772.1 -1.0 % 100.0 %
MANAGEMENT COMMENTARY
Mr. Robert Niu, Chief Executive Officer of Bright Scholar, commented, "Throughout the year, we bolstered our global business and operations, strengthening our foundation for future advancement. Despite macro challenges, we achieved rapid progress in our overseas business while further enhancing our senior leadership team to help advance our near-term expansion goals in overseas markets. Our Overseas Schools business maintained its double-digit year-over-year revenue growth for the fiscal year. As we focused our resources on strengthening our high-growth core business, we have completed divesting non-core business from our Complementary Education Services segment by the end of the fiscal quarter. Moving into fiscal year 2025, we plan to reinforce our "dual-engine" growth strategy by focusing on the continued expansion of our overseas school business while propelling our global recruitment initiatives for prospective international students. We are well-positioned to drive further expansion and capture more of the sizeable market opportunities that will support our sustainable development over the long term."
Ms. Cindy Zhang, Chief Financial Officer of Bright Scholar, added, "Ongoing development across our core businesses drove our healthy financial results for the fiscal year. Our total revenues for fiscal year 2024 remained stable year over year, with Overseas Schools revenue increasing by 18%. We continued to streamline our operations and improve operational efficiency. Notably, our gross profit increased by 7.7% and gross margin by 2.3 percentage points year-over-year. Meanwhile, we significantly enhanced our cash position, increasing our cash and cash equivalents and restricted cash by 20% for the fiscal year. Looking ahead, supported by our healthy balance sheet and the effective implementation of our "dual-engine" growth strategy, we are confident we can solidify our competitive edge while also driving long-term growth and profitability."
UNAUDITED FINANCIAL RESULTS FOR THE FOURTH FISCAL QUARTER ENDED AUGUST 31, 2024
Revenue from Continuing Operations
Revenue was RMB358.3 million, compared to RMB442.2 million for the same quarter last fiscal year.
Overseas Schools: Revenue contribution was RMB185.1 million, representing a 0.2% increase from RMB184.8 million for the same quarter last fiscal year.
Complementary Education Services: Revenue contribution was RMB129.8 million, compared to RMB161.7 million for the same quarter last fiscal year. The decrease was mainly attributable to a reduction in extracurricular programs and study tours.
Domestic Kindergartens & K-12 Operation Services: Revenue contribution was RMB43.4 million, compared to RMB95.7 million for the same quarter last fiscal year.
Cost of Revenue from Continuing Operations
Cost of revenue was RMB322.4 million, or 90.0% of revenue, compared to RMB362.4 million, or 81.9%, for the same quarter last fiscal year.
Gross Profit, Gross Margin and Adjusted Gross Profit from Continuing Operations
Gross profit was RMB35.9 million, compared to RMB79.8 million for the same quarter last fiscal year. Gross margin was 10.0%, compared to 18.1% for the same quarter last fiscal year.
Adjusted gross profit([4] )was RMB36.9 million, compared to RMB80.9 million for the same quarter last fiscal year.
Selling, General and Administrative (SG&A) Expenses from Continuing Operations
Total SG&A expenses were RMB119.3 million, representing an 18.3% decrease from RMB146.0 million for the same quarter last fiscal year. This improvement was mainly due to our continuous efforts to streamline our operations and improve operational efficiency in our headquarters.
Operating Loss/Income, Operating Margin and Adjusted Operating Income from Continuing Operations
Operating loss was RMB941.8 million, compared to RMB227.6 million for the same quarter last fiscal year. Operating loss margin was 262.9%, compared to 51.5% for the same quarter last fiscal year.
Adjusted operating loss([5]) was RMB78.8 million, compared to RMB64.0 million for the same quarter last fiscal year.
Net Loss and Adjusted Net Income/Loss
Net loss was RMB1,004.7 million, compared to RMB340.3 million for the same quarter last fiscal year.
Adjusted net loss was RMB92.0 million, compared to RMB121.4 million for the same quarter last fiscal year.
Adjusted EBITDA([6])
Adjusted EBITDA loss was RMB81.8 million, compared to RMB55.0 million for the same quarter last fiscal year.
Net Loss per Ordinary Share/ADS and Adjusted Net Earnings/Loss per Ordinary Share/ADS
Basic and diluted net loss per ordinary share attributable to ordinary shareholders from continuing operations were RMB7.90 each, compared to RMB2.41 each for the same quarter last fiscal year.
Basic and diluted net loss per ordinary share attributable to ordinary shareholders from discontinued operations were RMB0.42 each, compared to RMB0.50 each for the same quarter last fiscal year.
Adjusted basic and diluted net loss per ordinary share([7]) attributable to ordinary shareholders were RMB0.75 each, compared to RMB1.03 each for the same quarter last fiscal year.
Basic and diluted net loss per ADS attributable to ADS holders from continuing operations were RMB31.60 each, compared to RMB9.64 each for the same quarter last fiscal year.
Basic and diluted net loss per ADS attributable to ADS holders from discontinued operations were RMB1.68 each, compared to RMB2.00 each for the same quarter last fiscal year.
Adjusted basic and diluted net loss per ADS([8] )attributable to ADS holders were RMB3.00 each, compared to RMB4.12 each for the same quarter last fiscal year.
UNAUDITED FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED AUGUST 31, 2024
Revenue from Continuing Operations
Revenue was RMB1,755.2 million, compared to RMB1,772.1 million for the last fiscal year.
Overseas Schools: Revenue contribution was RMB951.2 million, representing a 17.5% increase from RMB809.5 million for the last fiscal year. The increase was mainly attributable to increases in both the number of students enrolled and the average tuition fees of overseas schools.
Complementary Education Services: Revenue contribution was RMB495.1 million, compared to RMB519.2 million for the last fiscal year. The decrease was mainly attributable to a reduction in extracurricular programs and study tours.
Domestic Kindergartens & K-12 Operation Services: Revenue contribution was RMB308.9 million, compared to RMB443.4 million for the last fiscal year.
Cost of Revenue from Continuing Operations
Cost of revenue was RMB1,251.6 million, or 71.3% of revenue, compared to RMB1,304.7 million, or 73.6%, for the last fiscal year. The improvement was mainly attributable to cost-saving measures.
Gross Profit, Gross Margin and Adjusted Gross Profit from Continuing Operations
Gross profit was RMB503.6 million, representing a 7.7% increase from RMB467.4 million for the last fiscal year. The increase was mainly attributable to the revenue growth in Overseas Schools. Gross margin increased to 28.7% from 26.4% for the last fiscal year.
Adjusted gross profit was RMB507.8 million, representing a 7.6% increase from RMB471.8 million for the last fiscal year.
Selling, General and Administrative (SG&A) Expenses from Continuing Operations
Total SG&A expenses were RMB469.0 million, representing an 8.1% decrease from RMB510.3 million for the last fiscal year. This improvement was mainly due to our continuous efforts to streamline our global operations and improve operational efficiency in our headquarters.
Operating Loss/Income, Operating Margin and Adjusted Operating Income from Continuing Operations
Operating loss was RMB820.4 million, compared to RMB161.7 million for the last fiscal year. Operating loss margin was 46.7%, compared to 9.1% for the last fiscal year.
Adjusted operating income increased by 856.3% to RMB50.5 million, from RMB5.3 million for the last fiscal year.
Net Loss and Adjusted Net Income/Loss
Net loss was RMB1,032.9 million, compared to RMB386.8 million for the last fiscal year.
Adjusted net income was RMB1.1 million, compared to adjusted net loss of RMB192.6 million for the last fiscal year.
Adjusted EBITDA
Adjusted EBITDA increased by 44.1% to RMB80.7 million, from RMB56.0 million for the last fiscal year.
Net Loss per Ordinary Share/ADS and Adjusted Net Earnings/Loss per Ordinary Share/ADS
Basic and diluted net loss per ordinary share from continuing operations attributable to ordinary shareholders were RMB7.18 each, compared to RMB3.03 each for the last fiscal year.
Basic and diluted net loss per ordinary share from discontinued operations attributable to ordinary shareholders were RMB1.22 each, compared to RMB0.30 each for the last fiscal year.
Adjusted basic and diluted net income per ordinary share attributable to ordinary shareholders were RMB0.04 each, compared to net loss per ordinary share attributable to ordinary shareholders of RMB1.63 each for the last fiscal year.
Basic and diluted net loss per ADS from continuing operations attributable to ADS holders were RMB28.72 each, compared to RMB12.12 each for the last fiscal year.
Basic and diluted net loss per ADS from discontinued operations attributable to ADS holders were RMB4.88 each, compared to RMB1.20 each for the last fiscal year.
Adjusted basic and diluted net income per ADS attributable to ADS holders were RMB0.16 each, compared to net loss per ADS attributable to ADS holders were RMB6.52 each for the last fiscal year.
Cash and Working Capital
As of August 31, 2024, the Company had cash and cash equivalents and restricted cash of RMB505.8 million (US$71.3 million), compared to RMB419.9 million as of August 31, 2023.
[4] Adjusted gross profit from continuing operations is defined as gross profit from continuing operations excluding amortization of intangible assets.
[5]. Adjusted operating income/(loss) from continuing operations is defined as operating income/(loss) from continuing operations excluding share-based compensation expenses, amortization of intangible assets, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets, and impairment loss on the long-term investments.
[6]. Adjusted EBITDA is defined as net income/(loss) excluding interest income/(expense), net, income tax expense/benefit, depreciation and amortization, share-based compensation expenses, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on the long-term investments and income/(loss) from discontinued operations, net of tax.
[7] 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 expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible
assets, impairment loss on the long-term investments and income/(loss) from discontinued operations, net of tax) divided by the weighted average number of basic and diluted ordinary shares.
[8]. Adjusted basic and diluted earnings/(loss) per American Depositary Share ("ADS") is defined as adjusted net income/(loss) attributable to ADS shareholders (net income/(loss) attributable to ADS shareholders excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on property and equipment, impairment loss on goodwill, impairment
loss on intangible assets, impairment loss on the long-term investments and income/(loss) from discontinued operations, net of tax) divided by the weighted average number of basic and diluted ADSs.
CONFERENCE CALL
The Company's management will host an earnings conference call at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong Time) on November 25, 2024.
Dial-in details for the earnings conference call are as follows:
Mainland China: 4001-201203
Hong Kong: 800-905945
United States: 1-888-346-8982
International: 1-412-902-4272
Participants should dial in at least 5 minutes before the scheduled start time and ask to be connected to the call for "Bright Scholar Education Holdings Limited."
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.brightscholar.com/.
A replay of the conference call will be accessible after the conclusion of the live call until December 2, 2024, by dialing the following telephone numbers:
United States Toll Free: 1-877-344-7529
International: 1-412-317-0088
Replay Passcode: 7352870
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 ended August 30, 2024 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0900, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on August 30, 2024. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on August 30, 2024, 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 operating income/(loss), adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders 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. We define adjusted EBITDA as net income/(loss) excluding interest income/(expense), net, income tax expense/benefit, depreciation and amortization, share-based compensation expenses, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on the long-term investments and income/(loss) from discontinued operations, net of tax. We define adjusted net income/(loss) as net income/(loss) excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on property and equipment, impairment loss on the long-term investments, and income/(loss) from discontinued operations, net of tax. We define adjusted operating income/(loss) from continuing operations as operating income/(loss) from continuing operations excluding share-based compensation expenses, amortization of intangible assets, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets and impairment loss on the long-term investments. Additionally, we define adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders, basic and diluted, as adjusted net income/(loss) attributable to ordinary shareholders/ADS holders (net income/(loss) to ordinary shareholders/ADS holders excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on goodwill, impairment loss on intangible assets,, impairment loss on property and equipment, impairment loss on the long-term investments, and income/(loss) from discontinued operations, net of tax) divided by the weighted average number of basic and diluted ordinary shares or ADSs.
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/ADS holders, basic and diluted. In addition, the strategic move to dispose of the non-core businesses is viewed 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/ADS holders, 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 operating income/(loss) from continuing operations, adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders 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 expenses, and without considering the impact of non-operating items such as interest income/(expense), net; income tax expense/benefit; share-based compensation expenses; 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; 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 premier global education service Group. The Company primarily provides quality international education to global students and equips them with the critical academic foundation and skillsets necessary to succeed in the pursuit of higher education.
For more information, please visit: https://ir.brightscholar.com/.
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:
Email: BEDU@thepiacentegroup.com
Phone: +86 (10) 6508-0677/ +1-212-481-2050
Media Contact:
Email: media@brightscholar.com
BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
As of
August 31, August 31,
2023 2024
RMB RMB USD
ASSETS
Current assets
Cash and cash equivalents 410,086 493,377 69,588
Restricted cash 9,521 12,167 1,716
Accounts receivable, net 13,800 18,793 2,651
Amounts due from related 183,468 14,417 2,033
parties, net
Other receivables, deposits 116,807 123,860 17,470
and other assets, net
Inventories 1,183 1,160 165
Current assets belong to
discontinued operations
192,534
Total current assets 927,399 663,774 93,622
Restricted cash - non-current 250 250 35
Property and equipment, net 390,006 349,349 49,273
Intangible assets, net 310,022 49,598 6,995
Goodwill, net 1,110,802 527,297 74,372
Long-term investments, net 32,732 24,421 3,444
Prepayments for construction 1,712 328 46
contracts
Deferred tax assets, net 1,644 1,920 271
Other non-current assets, net 9,424 9,106 1,284
Operating lease right-of-use 1,490,009 1,419,406 200,198
assets - non current
Non-current assets belong to 345,510
discontinued operations
Total non-current assets 3,692,111 2,381,675 335,918
TOTAL ASSETS 4,619,510 3,045,449 429,540
BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS-CONTINUED
(Amounts in thousands)
As of
August 31,
August 31,
2023 2024
RMB RMB USD
LIABILITIES AND EQUITY
Current liabilities
Accounts payable 94,481 91,843 12,954
Amounts due to related parties 244,259 78,365 11,053
Accrued expenses and other 233,053 191,222 26,971
current liabilities
Income tax payable 88,460 78,986 11,140
Contract liabilities - current 428,617 445,715 62,865
Refund liabilities - current 10,129 9,872 1,392
Operating lease liabilities - 104,905 106,325 14,996
current
Current liabilities belong to
discontinued operations
276,499
Total current liabilities 1,480,403 1,002,328 141,371
Non-current contract liabilities 971 866 122
Deferred tax liabilities, net 34,755 31,174 4,397
Operating lease liabilities - 1,461,255 1,404,973 198,163
non current
Non-current liabilities belong to 70,470
discontinued operations
Total non-current liabilities 1,567,451 1,437,013 202,682
TOTAL LIABILITIES 3,047,854 2,439,341 344,053
EQUITY
Share capital 8 8 1
Additional paid-in capital 1,697,370 1,783,490 251,550
Statutory reserves 20,155 16,535 2,332
Accumulated other 172,230 191,397 26,995
comprehensive income
Accumulated deficit (473,154) (1,474,619) (207,986)
Shareholders' equity 1,416,609 516,811 72,892
Non-controlling interests 155,047 89,297 12,595
TOTAL EQUITY 1,571,656 606,108 85,487
TOTAL LIABILITIES AND EQUITY 4,619,510 3,045,449 429,540
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 Year Ended August
31
2023 2024 2023 2024
RMB RMB USD RMB RMB USD
Continuing operations
Revenue 442,187 358,271 50,532 1,772,127 1,755,206 247,561
Cost of revenue (362,354) (322,407) (45,473) (1,304,699) (1,251,620) (176,533)
Gross profit 79,833 35,864 5,059 467,428 503,586 71,028
Selling, general and administrative expenses (145,996) (119,253) (16,820) (510,269) (469,047) (66,156)
Impairment loss on goodwill (147,116) (593,748) (83,744) (147,116) (593,748) (83,744)
Impairment loss on intangible assets - (258,326) (36,435) (258,326) (36,435)
Impairment loss on property and equipment (12,891) (6,607) (932) (12,891) (6,607) (932)
Impairment loss on the long-term investments (2,613) (2,613)
Other operating income 1,162 316 45 43,783 3,699 522
Operating loss (227,621) (941,754) (132,827) (161,678) (820,443) (115,717)
Interest income/(expense), net 2,124 392 55 (5,452) (1,315) (185)
Investment loss (25) (182) (26) (807) (2,516) (355)
Other expenses (4,316) (5,591) (790) (7,380) (4,012) (567)
L
oss
before income taxes and share of equity in (229,838) (947,135) (133,588) (175,317) (828,286) (116,824)
profit
/
(loss) of unconsolidated affiliates
Income tax (expense)/ benefit (55,301) 337 48 (183,208) (32,908) (4,641)
Share of equity in profit/(loss) of unconsolidated 61 (7,957) (1,122) (339) (7,876) (1,111)
affiliates
Net l
oss from continuing operations (285,078) (954,755) (134,662) (358,864) (869,070) (122,576)
L
oss from discontinued operations
, net of tax (55,240) (49,929) (7,042) (27,959) (163,791) (23,102)
Net loss (340,318) (1,004,684) (141,704) (386,823) (1,032,861) (145,678)
Net income/(loss) attributable to non-controlling
interests
Continuing operations 334 (16,761) (2,364) 823 (17,296) (2,439)
Discontinued operations 3,957 (60) (8) 7,488 (19,286) (2,720)
Net
loss attributable to ordinary shareholders
Continuing operations (285,412) (937,994) (132,298) (359,687) (851,774) (120,137)
Discontinued operations (59,197) (49,869) (7,034) (35,447) (144,505) (20,382)
Net
loss
per share attributable to
ordinary shareholders
-
Basic and diluted
Continuing operations (2.41) (7.90) (1.11) (3.03) (7.18) (1.01)
Discontinued operations (0.50) (0.42) (0.06) (0.30) (1.22) (0.17)
Weighted average shares used in
calculating net
loss
per ordinary share:
-Basic and diluted
Continuing operations 118,669,795 118,669,795 118,669,795 118,669,795 118,669,795 118,669,795
Discontinued operations 118,669,795 118,669,795 118,669,795 118,669,795 118,669,795 118,669,795
Net
loss
per ADS
-Basic and diluted
Continuing operations (9.64) (31.60) (4.44) (12.12) (28.72) (4.04)
Discontinued operations (2.00) (1.68) (0.24) (1.20) (4.88) (0.68)
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
2023 2024 2023 2024
RMB RMB USD RMB RMB USD
Net cash generated from operating activities 6,923 104,041 14,674 22,261 126,394 17,827
Net cash used in investing activities (20,003) (128,015) (18,056) (52,949) (98,004) (13,823)
Net cash used in financing activities (208,397) (1,201) (169) (298,794) (85,459) (12,053)
Effect of exchange rate changes on cash and cash 23,319 (6,270) (884) 38,934 (4,373) (617)
equivalents, and restricted cash
Net change in cash and cash equivalents,
and restricted cash (198,158) (31,445) (4,435) (290,548) (61,442) (8,666)
Cash and cash equivalents, and restricted cash
at beginning of the period 765,394 537,239 75,774 857,784 567,236 80,005
Cash and cash equivalents, and restricted cash
at end of the period 567,236 505,794 71,339 567,236 505,794 71,339
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 Year Ended August
31
2023 2024 2023 2024
RMB RMB USD RMB RMB USD
Gross profit
from continuing operations 79,833 35,864 5,059 467,428 503,586 71,028
Add: Amortization of intangible assets 1,050 1,050 148 4,341 4,184 590
Adjusted gross profit
from continuing 80,883 36,914 5,207 471,769 507,770 71,618
operations
Operating
loss
from continuing operations (227,621) (941,754) (132,827) (161,678) (820,443) (115,717)
Add: Share-based compensation expenses - 3,240 457 8,101 1,143
Add: Amortization of intangible assets 1,050 1,050 148 4,341 4,184 590
Add: Impairment loss on goodwill 147,116 593,748 83,744 147,116 593,748 83,744
Add: Impairment loss on intangible assets - 258,326 36,435 258,326 36,435
Add: Impairment loss on property and equipment 12,891 6,607 932 12,891 6,607 932
Add: Impairment loss on the long-term investments 2,613 2,613
Adjusted operating (loss)/income
from continuing (63,951) (78,783) (11,111) 5,283 50,523 7,127
operations
Net
loss (340,318) (1,004,684) (141,704) (386,823) (1,032,861) (145,678)
Add: Share-based compensation expenses - 3,240 457 8,101 1,143
Add: Amortization of intangible assets 1,050 1,050 148 4,341 4,184 590
Add: Tax effect of amortization of intangible assets (41) (209) (29) (670) (833) (117)
Add: Impairment loss on goodwill 147,116 593,748 83,744 147,116 593,748 83,744
Add: Impairment loss on intangible assets - 258,326 36,435 258,326 36,435
Add: Impairment loss on property and equipment 12,891 6,607 932 12,891 6,607 932
Add: Impairment loss on the long-term investments 2,613 2,613
Less: Loss from discontinued operations, net of tax (55,240) (49,929) (7,042) (27,959) (163,791) (23,102)
Adjusted net (loss)
/income (121,449) (91,993) (12,975) (192,573) 1,063 151
Net
loss
attributable to ordinary shareholders (344,608) (987,863) (139,332) (395,134) (996,279) (140,519)
Add: Share-based compensation expenses - 3,240 457 8,101 1,143
Add: Amortization of intangible assets 1,050 1,050 148 4,341 4,184 590
Add: Tax effect of amortization of intangible assets (41) (209) (29) (670) (833) (117)
Add: Impairment loss on goodwill 147,116 579,827 81,781 147,116 579,827 81,781
Add: Impairment loss on intangible assets - 258,326 36,435 258,326 36,435
Add: Impairment loss on property and equipment 12,891 6,607 932 12,891 6,607 932
Add: Impairment loss on the long-term investments 2,613 2,613
Less: Loss from discontinued operations, net of tax (59,197) (49,869) (7,034) (35,447) (144,505) (20,382)
Adjusted net (
loss)/income
attributable to (121,782) (89,153) (12,574) (193,396) 4,438 627
ordinary shareholders
Net
loss (340,318) (1,004,684) (141,704) (386,823) (1,032,861) (145,678)
Add: Interest expense, net (2,124) (392) (55) 5,452 1,315 185
Add: Income tax expense 55,301 (337) (48) 183,208 32,908 4,641
Add: Depreciation and amortization 14,293 11,808 1,665 63,598 48,796 6,882
Add: Share-based compensation expenses - 3,240 457 8,101 1,143
Add: Impairment loss on goodwill 147,116 593,748 83,744 147,116 593,748 83,744
Add: Impairment loss on intangible assets - 258,326 36,435 258,326 36,435
Add: Impairment loss on property and equipment 12,891 6,607 932 12,891 6,607 932
Add: Impairment loss on the long-term investments 2,613 2,613
Less: Loss from discontinued operations, net of tax (55,240) (49,929) (7,042) (27,959) (163,791) (23,102)
Adjusted EBITDA (54,988) (81,755) (11,532) 56,014 80,731 11,386
Weighted average shares used
in calculating adjusted net (
loss)/income
per
ordinary share:
-
Basic and Diluted
Continuing operations 118,669,795 118,669,795 118,669,795 118,669,795 118,669,795 118,669,795
Discontinued operations 118,669,795 118,669,795 118,669,795 118,669,795 118,669,795 118,669,795
Adjusted net (
loss)/income
per share
attributable
to ordinary shareholders
-Basic (1.03) (0.75) (0.11) (1.63) 0.04 0.01
-Diluted (1.03) (0.75) (0.11) (1.63) 0.04 0.01
Adjusted net (
loss)/income
per ADS
-Basic (4.12) (3.00) (0.44) (6.52) 0.16 0.04
-Diluted (4.12) (3.00) (0.44) (6.52) 0.16 0.04
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SOURCE Bright Scholar Education Holdings Ltd.
