Four Seasons Education Reports Third Quarter Fiscal 2021 Unaudited Financial Results

SHANGHAI, Jan. 12, 2021 /PRNewswire/ — 4 Seasons Schooling (Cayman) Inc. (“4 Seasons Schooling” or the “Firm”) (NYSE: FEDU), a number one Shanghai-based academic firm devoted to offering complete after-school training companies with a give attention to high-quality math training, immediately introduced its unaudited monetary outcomes for the third quarter fiscal yr 2021, ended November 30, 2020.

Third Quarter Fiscal Yr 2021 Monetary and Operational Highlights

• Income was RMB67.6 million (US$10.3 million), in contrast with RMB103.5 million in the identical interval of final yr.
• Gross revenue was RMB25.2 million (US$3.8 million), in contrast with RMB53.0 million in the identical interval of final yr.
• Working loss was RMB12.8 million (US$1.9 million), in contrast with working earnings of RMB10.9 million in the identical interval of final yr.
• Adjusted working loss⁽¹⁾ (non-GAAP) was RMB6.8 million (US$1.0 million), in contrast with adjusted working earnings of RMB17.0 million in the identical interval of final yr.
• Web loss was RMB8.8 million (US$1.3 million), in contrast with internet earnings of RMB11.3 million in the identical interval of final yr.
• Adjusted internet loss⁽²⁾ (non-GAAP) was RMB4.5 million (US$0.7 million), in contrast with adjusted internet earnings of RMB14.5 million in the identical interval of final yr.
• Fundamental and diluted internet loss per American Depositary Share (“ADS”) attributable to bizarre shareholders had been each RMB0.19 (US$0.03), in contrast with internet earnings of RMB0.24 and RMB0.23, respectively, for a similar interval of final yr. Every two ADSs symbolize one bizarre share.
• Adjusted fundamental and diluted internet loss per ADS attributable to bizarre shareholders⁽³⁾ (non-GAAP) had been each RMB0.10 (US$0.01), in contrast with internet earnings of RMB0.31 and RMB0.30, respectively, for a similar interval of final yr.
• Variety of studying facilities was 49 as of November 30, 2020, in contrast with 55 as of November 30, 2019.
• Whole scholar enrollment⁽⁴⁾ was 53,493, in contrast with 67,714 throughout the identical interval of final yr.

“In the course of the third quarter of fiscal 2021, we continued to optimize our operations to supply a superior studying expertise for our college students of their pursuit of each tutorial excellence and private growth,” mentioned Ms. Yi (Joanne) Zuo, Director and Chief Govt Officer at 4 Seasons Schooling. “Whole scholar enrollment reached 53,493 with a better-than-expected income, which assures us that our methods are on monitor to assist our enterprise to recuperate and return to its pre-pandemic growth trajectory. Within the third quarter, we spearheaded efforts to additional enrich and diversify curricula with new academic applications, spanning a full spectrum of educational topics in an effort to cater to the rising studying wants for highschool entrance exams following latest regulatory modifications. We had been excited to see a 54.5% year-over-year development in center faculty class enrollment this quarter to a brand new document excessive.

Our unwavering efforts to reinforce our distinctive curriculum choices additionally bore fruit this quarter with continued development in our enrollment retention charges. Presently, we’re seeing a year-over-year improve in money receipts and enrollment from our winter lessons. It is a nice testomony to the effectiveness of our core capabilities in providing high-quality academic merchandise, making revolutionary and responsive curriculum growth in addition to sustaining a powerful tutoring workforce. As well as, we leveraged our deep experience in delivering tangible studying outcomes to make significant strides in our nationwide enlargement, leading to improved enrollment for studying facilities exterior Shanghai. Going ahead, we are going to proceed strengthening our model academic merchandise and educating approaches to additional drive scholar enrollment and engagement, paving the best way for a way forward for worthwhile development. We’re assured that our capacity to supply state-of-the-art programs and companies has positioned us to seize new alternatives in a recovering market and create a sustainable enterprise in the long term,” Ms. Zuo concluded.

Third Quarter Fiscal Yr 2021 Monetary Outcomes

Income was RMB67.6 million (US$10.3 million) for the third quarter of fiscal yr 2021, in contrast with RMB103.5 million in the identical interval of final yr, primarily resulting from newest regulatory coverage and the prolonged influence of COVID-19, partially offset by the proactive curricular improve in response to the evolving market wants.

Value of income decreased by 15.9% to RMB42.5 million (US$6.5 million) for the third quarter of fiscal yr 2021 from RMB50.5 million in the identical interval of final yr, primarily attributable to decreased workers prices and the continuing optimization of the educational heart community.

Gross revenue was RMB25.2 million (US$3.8 million) for the third quarter of fiscal yr 2021, in contrast with RMB53.0 million in the identical interval of final yr.  

Common and administrative bills decreased by 9.0% to RMB30.4 million (US$4.6 million) for the third quarter of fiscal yr 2021 from RMB33.4 million in the identical interval of final yr, primarily because of the improved human useful resource administration.

Gross sales and advertising and marketing bills decreased by 14.2% to RMB7.5 million (US$1.1 million) for the third quarter of fiscal yr 2021 from RMB8.8 million in the identical interval of final yr.

Working loss was RMB12.8 million (US$1.9 million) for the third quarter of fiscal yr 2021, in contrast with working earnings of RMB10.9 million in the identical interval of final yr. Adjusted working loss⁽¹⁾ (non-GAAP), which is calculated as working earnings excluding share-based compensation bills, was RMB6.8 million (US$1.0 million) for the third quarter of fiscal yr 2021, in contrast with adjusted working earnings of RMB17.0 million in the identical interval of final yr.

Earnings tax profit was RMB1.3 million (US$0.2 million) for the third quarter of fiscal yr 2021, in contrast with earnings tax expense of RMB6.2 million in the identical interval of final yr. 

Web loss was RMB8.8 million (US$1.3 million) throughout the third quarter of fiscal yr 2021, in contrast with internet earnings of RMB11.3 million in the identical interval of final yr. Adjusted internet loss ⁽²⁾ (non-GAAP), which is calculated as internet earnings excluding share-based compensation bills and honest worth change of the Firm’s investments, was RMB4.5 million (US$0.7 million) for the third quarter of fiscal yr 2021, in contrast with adjusted internet earnings of RMB14.5 million in the identical interval of final yr.

Fundamental and diluted internet loss per ADS attributable to bizarre shareholders for the third quarter of fiscal yr 2021 had been each RMB0.19 (US$0.03), in contrast with internet earnings of RMB0.24 and RMB0.23, respectively, for a similar interval of final yr. Adjusted fundamental and diluted internet loss per ADS attributable to bizarre shareholders⁽³⁾ (non-GAAP), which is calculated as fundamental/diluted internet earnings/loss per ADS attributable to bizarre shareholders excluding share-based compensation bills per ADS attributable to bizarre shareholders and honest worth change of investments measured at honest worth per ADS attributable to bizarre shareholders, had been each RMB0.10 (US$0.01) for the third quarter of fiscal yr 2021, in contrast with adjusted internet earnings of RMB0.31 and RMB0.30, respectively, for a similar interval of final yr.

Money and money equivalents. As of November 30, 2020, the Firm had money and money equivalents of RMB439.0 million (US$66.8 million), in contrast with RMB404.7 million as of February 29, 2020.

First 9 Months Fiscal Yr 2021 Monetary Outcomes

Income was RMB210.1 million (US$31.9 million) for the primary 9 months of fiscal yr 2021, in contrast with RMB318.0 million in the identical interval of final yr, primarily because of the influence of the COVID-19 and newest regulatory coverage, partially offset by the proactive curricular improve in response to the evolving market wants.

Value of income decreased by 17.9% to RMB126.9 million (US$19.3 million) for the primary 9 months of fiscal yr 2021 from RMB154.7 million in the identical interval of final yr, primarily attributable to decreased workers prices and the continuing restructuring and optimization of the educational heart community.

Gross revenue was RMB83.2 million (US$12.6 million) for the primary 9 months of fiscal yr 2021, in contrast with RMB163.3 million in the identical interval of final yr.

Common and administrative bills decreased by 10.9% to RMB88.7 million (US$13.5 million) for the primary 9 months of fiscal yr 2021 from RMB99.5 million in the identical interval of final yr.

Gross sales and advertising and marketing bills decreased by 15.8% to RMB22.5 million (US$3.4 million) for the primary 9 months of fiscal yr 2021 from RMB26.7 million in the identical interval of final yr.

Working loss was RMB28.0 million (US$4.3 million) for the primary 9 months of fiscal yr 2021, in contrast with working earnings of RMB37.1 million in the identical interval of final yr. Adjusted working loss, which excludes share-based compensation bills, was RMB7.1 million (US$1.1 million) for the primary 9 months of fiscal yr 2021, in contrast with adjusted working earnings of RMB60.4 million in the identical interval of final yr.

Web loss was RMB16.4 million (US$2.5 million) throughout the first 9 months of fiscal yr 2021, in contrast with internet earnings of RMB35.8 million in the identical interval of final yr. Adjusted internet earnings, which excludes share-based compensation bills and honest worth change of the Firm’s investments measured at honest worth, was RMB1.7 million (US$0.3 million) for the primary 9 months of fiscal yr 2021, in contrast with RMB52.6 million in the identical interval of final yr.

Fundamental and diluted internet loss per ADS attributable to bizarre shareholders for the primary 9 months of fiscal yr 2021 had been each RMB0.35 (US$0.05), in contrast with internet earnings of RMB0.72 and RMB0.70, respectively, for a similar interval of final yr. Non-GAAP fundamental and diluted internet earnings per ADS attributable to bizarre shareholders for the primary 9 months of fiscal yr 2021 had been each RMB0.04 (US$0.01), in contrast with RMB1.07 and RMB1.04, respectively, for a similar interval of final yr.

Enterprise Outlook

For the fourth quarter of fiscal yr 2021, the Firm expects to generate income within the vary of RMB64.0 million to RMB67.5 million.

The above steering displays the Firm’s present and preliminary view, which is topic to vary.

Convention Name

The Firm’s administration will host an earnings convention name at 8:00 AM U.S. Japanese Time on January 12, 2021 (9:00 PM Beijing/Hong Kong time on January 12, 2021)

Dial-in particulars for the earnings convention name are as follows:

Contributors ought to dial-in no less than 5 minutes earlier than the scheduled begin time and ask to be linked to the decision for “4 Seasons Schooling.”

Moreover, a reside and archived webcast of the convention name might be obtainable on the Firm’s investor relations web site at http://ir.sijiedu.com.

A replay of the convention name might be accessible roughly one hour after the conclusion of the reside name till January 19, 2021, by dialing the next phone numbers:

About 4 Seasons Schooling (Cayman) Inc.

4 Seasons Schooling (Cayman) Inc. is a number one Shanghai-based academic firm devoted to offering complete after-school training companies with a give attention to high-quality math training. The Firm’s imaginative and prescient is to unlock college students’ mental potential by top quality and efficient training that may profoundly profit college students’ tutorial, profession and life prospects. The Firm offers academic applications which might be primarily targeted on elementary-level math and have expanded in recent times to additionally embrace different topics, together with physics, chemistry, and languages, and different grade ranges, together with kindergarten-level and center school-level applications. The Firm’s proprietary academic content material is designed to domesticate college students’ pursuits and improve their cognitive and logic talents. The Firm develops its academic content material by a scientific growth course of and updates it usually based mostly on scholar efficiency and suggestions. Such course of permits the Firm to successfully drive higher studying outcomes and serve college students of various ages, aptitude ranges and studying goals. The Firm’s college is led by a bunch of skilled senior educators, together with acknowledged students, award-winning academics. Through the years, the standard of the Firm’s training companies has been demonstrated by its scholar excellent tutorial efficiency.

About Non-GAAP Monetary Measures

In evaluating the Firm’s enterprise, the Firm considers and makes use of sure non-GAAP measures, together with primarily adjusted working earnings/loss, adjusted internet earnings/loss and adjusted fundamental and diluted internet earnings/loss per ADS attributable to bizarre shareholders, as supplemental measures to assessment and assess the Firm’s working efficiency. Adjusted working earnings/loss is outlined as working earnings/loss excluding share-based compensation bills. Adjusted internet earnings/loss is outlined as internet earnings/loss excluding share-based compensation bills and honest worth change of the Firm’s investments. Adjusted fundamental/ diluted internet earnings/loss per ADS attributable to bizarre shareholders is outlined as fundamental/diluted internet earnings/loss per ADS attributable to bizarre shareholders excluding share-based compensation bills per ADS attributable to bizarre shareholders and honest worth change of investments measured at honest worth per ADS attributable to bizarre shareholders. The presentation of those non-GAAP monetary measures just isn’t meant to be thought of in isolation or as an alternative choice to the monetary info ready and introduced in accordance with U.S. GAAP.

The Firm believes that these non-GAAP monetary measures present significant supplemental info concerning its efficiency and liquidity by excluding share-based bills, honest worth change of investments measured at honest worth and impairment loss on intangible property and goodwill (the place relevant) that will not be indicative of the Firm’s working efficiency from a money perspective. The Firm believes that each administration and buyers profit from these non-GAAP monetary measures in assessing its efficiency and when planning and forecasting future intervals. These non-GAAP monetary measures additionally facilitate administration’s inner comparisons to the Firm’s historic efficiency and liquidity. The Firm additionally believes these non-GAAP monetary measures are helpful to buyers in permitting for better transparency with respect to supplemental info utilized by administration within the Firm’s monetary and operational choice making. A limitation of utilizing non-GAAP measures is that these non-GAAP measures exclude share-based compensation costs and honest worth change of investments measured at honest worth (the place relevant) which have been and can proceed to be for the foreseeable future a major recurring expense within the Firm’s enterprise. The Firm compensates for these limitations by offering particular info concerning the GAAP quantities excluded from every non-GAAP measure. The accompanying tables have extra particulars on the reconciliations between GAAP monetary measures which might be most straight corresponding to non-GAAP monetary measures.

Alternate Price Info

This announcement incorporates translations of sure RMB quantities into U.S. {dollars} at a specified fee solely for the comfort of the reader. Except in any other case famous, all translations from RMB to U.S. {dollars} are made at a fee of RMB6.5760 to US$1.00, the speed set forth within the H.10 statistical launch of the U.S. Federal Reserve Board on November 30, 2020.

Secure Harbor Assertion

This press launch incorporates statements of a forward-looking nature. These statements, together with the statements referring to the Firm’s future monetary and working outcomes, are made beneath the “secure harbor” provisions of the U.S. Personal Securities Litigation Reform Act of 1995. You may establish these forward-looking statements by terminology corresponding to “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and related statements. Amongst different issues, administration’s quotations and the Enterprise Outlook part include forward-looking statements. These forward-looking statements contain recognized and unknown dangers and uncertainties and are based mostly on present expectations, assumptions, estimates and projections concerning the Firm and the trade. Potential dangers and uncertainties embrace, however usually are not restricted to, these referring to its capacity to draw new college students and retain present college students, its capacity to ship a passable studying expertise and bettering their tutorial efficiency, PRC rules and insurance policies referring to the training trade in China, basic financial situations in China, and the Firm’s capacity to fulfill the requirements crucial to keep up itemizing of its ADSs on the NYSE or different inventory change, together with its capacity to treatment any non-compliance with the NYSE’s continued itemizing standards. All info offered on this press launch is as of the date hereof, and the Firm undertakes no obligation to replace any forward-looking statements to replicate subsequent occurring occasions or circumstances, or modifications in its expectations, besides as could also be required by regulation. Though the Firm believes that the expectations expressed in these forward-looking statements are cheap, it can’t guarantee you that its expectations will become right, and buyers are cautioned that precise outcomes could differ materially from the anticipated outcomes. Additional info concerning dangers and uncertainties confronted by the Firm is included within the Firm’s filings with the U.S. Securities and Alternate Fee, together with its annual experiences on Type 20-F.

For investor and media inquiries, please contact:

In China:
4 Seasons Schooling (Cayman) Inc.
Olivia Li
Tel: +86 (21) 6317-6678
E-mail: [email protected]

The Piacente Group, Inc.
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: [email protected]

In the USA:
The Piacente Group, Inc.  
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]

SOURCE 4 Seasons Schooling Inc.

Associated Hyperlinks

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