Bright Scholar Announces Unaudited Financial Results for the Second Quarter of Fiscal Year 2025
PR Newswire
CAMBRIDGE, England and FOSHAN, China, April 28, 2025
Net income from continuing operations increased 223.6% YoY to GBP3.2 million
Management to hold a conference call today at 7:00 a.m. Eastern Time
CAMBRIDGE, England and FOSHAN, China, April 28, 2025 /PRNewswire/ -- Bright Scholar Education Holdings Limited ("Bright Scholar," the "Company," "we" or "our") $(BEDU)$, a global premier education service company, today announced its unaudited financial results for the second quarter of fiscal year 2025 ended February 28, 2025.
SECOND QUARTER OF FISCAL YEAR 2025 FINANCIAL HIGHLIGHTS
-- Total revenue from continuing operations was GBP43.8 million, compared to
GBP48.5 million for the same quarter last fiscal year.
-- Revenue from Schools was GBP26.6 million, compared to GBP27.3
million for the same quarter last fiscal year.
-- Revenue from Overseas Study Counselling increased by 6.2% to
GBP11.9 million from GBP11.2 million for the same quarter last
fiscal year.
-- Operating income from continuing operations was GBP2.3 million,
representing a 7.2% increase from the same quarter last fiscal year.
Adjusted operating income from continuing operations[1] increased by 8.1%
to GBP2.7 million from GBP2.5 million for the same quarter last fiscal
year.
-- Net income from continuing operations increased by 223.6% to GBP3.2
million from GBP1.0 million for the same quarter last fiscal year.
Adjusted net income[2] grew by 179.5% to GBP3.5 million from GBP1.3
million for the same quarter last fiscal year.
Revenue from continuing operations by Segment([3])
For the second quarter % of total
(GBP in millions except for ended YoY revenue in
percentage) February 28/29, % Change F2Q2025
2025 2024
------------ ----------- --------- -----------
Schools([4]) 26.6 27.3 -2.9 % 60.6 %
Overseas Study
Counselling([5]) 11.9 11.2 6.2 % 27.1 %
Others([6]) 5.3 10.0 -45.9 % 12.3 %
------------ ----------- --------- -----------
Total 43.8 48.5 -9.7 % 100.0 %
[1]. Adjusted operating income/(loss) from continuing operations is a non-GAAP
financial measure, which is defined as operating income/(loss) from continuing
operations excluding share-based compensation expenses and amortization of
intangible assets.
[2]. Adjusted net income is a non-GAAP financial measure, which is defined as
net income excluding share-based compensation expenses, amortization of
intangible assets, tax effect of amortization of intangible assets, and
income/(loss) from discontinued operations, net of tax.
[3]. Effective from the first quarter of fiscal year 2025, the Company has
updated its segment reporting to better reflect its strategic priorities. The
Company now reports three segments: Schools, Overseas Study Counselling, and
Others. Accordingly, segment revenue from continuing operations for the second
quarter ended February 29, 2024 has been revised to conform to the
presentation used for the second quarter ended February 28, 2025.
[4]. Schools business refers to the previous Overseas Schools segment.
[5]. Overseas Study Counselling business is part of the previous Complementary
Education Services segment.
[6]. Others include the previous Domestic Kindergartens & K-12 Operation
Services and Complementary Education Services segments (excluding Overseas
Study Counselling).
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.
MANAGEMENT COMMENTARY
Mr. Robert Niu, Chief Executive Officer of Bright Scholar, commented, "During the second fiscal quarter, we achieved steady progress in executing our "dual-engine" strategy by advancing both global expansion and student recruitment. These efforts have strengthened the resilience of our Schools business amidst external headwinds while creating a foundation for continued success. Operationally, we maintained stable total enrollment year-over-year at 2,669 students as of March 31, 2025. Notably, we also achieved a strong 14.2% year-over-year improvement in revenue per enrollment at our U.S. schools this quarter, a testament to our premium positioning and operational effectiveness. Meanwhile, our global recruitment efforts continued to gain momentum across key markets, enhancing our pipeline for future growth. As a leading provider of premier international education services, we remain committed to delivering exceptional learning experiences, optimizing operational efficiency, and scaling our global footprint to create enduring value for all stakeholders."
Ms. Cindy Zhang, Chief Financial Officer of Bright Scholar, added, "We are pleased to report healthy financial results in the second fiscal quarter, reflecting improved operating efficiency and profitability. Our total revenue remained relatively stable year-over-year at GBP43.8 million. Revenues from our Overseas Study Counselling business increased by 6.2% year-over-year to GBP11.9 million. We continue to manage our costs prudently, balancing our growth initiatives with the impact of the macroeconomic environment. Our SG&A expenses decreased by 13.7% year-over-year in absolute amount, while as a percentage of revenue decreasing by 1.2 percentage points to 25.5%. Notably, our net income from continuing operations increased by over 200% year-over-year. In the second half of the fiscal year, we will continue to execute our long-term strategy to balance healthy and sustainable growth while improving profitability."
UNAUDITED FINANCIAL RESULTS FOR THE SECOND FISCAL QUARTER ENDED FEBRUARY 28, 2025
Revenue from Continuing Operations
Revenue was GBP43.8 million, compared to GBP48.5 million for the same quarter last fiscal year.
Schools: Revenue was GBP26.6 million, compared to GBP27.3 million for the same quarter last fiscal year.
Overseas Study Counselling: Revenue was GBP11.9 million, representing an increase of 6.2% from the same quarter last fiscal year. The increase was mainly due to recruitment growth.
Others: Revenue was GBP5.3 million, compared to GBP10.0 million for the same quarter last fiscal year. The decrease was mainly due to the contraction of K-12 operation services, which was in line with our expectations.
Cost of Revenue from Continuing Operations
Cost of revenue was GBP30.7 million, compared to GBP33.6 million for the same quarter last fiscal year.
Gross Profit, Gross Margin and Adjusted Gross Profit from Continuing Operations([7])
Gross profit was GBP13.2 million, compared to GBP15.0 million for the same quarter last fiscal year. Gross margin was 30.0%, compared to 30.8% for the same quarter last fiscal year.
Adjusted gross profit from continuing operations was GBP13.2 million, compared to GBP15.1 million for the same quarter last fiscal year.
Selling, General and Administrative (SG&A) Expenses from Continuing Operations
Total SG&A expenses were GBP11.2 million, representing a 13.7% decrease from GBP13.0 million for the same quarter last fiscal year. The decrease was mainly due to the improvement in operational efficiency in our Schools business.
Operating Income, Operating Margin and Adjusted Operating Income from Continuing Operations
Operating income was GBP2.3 million, representing a 7.2% increase from GBP2.2 million for the same quarter last fiscal year. Operating margin was 5.3%, compared to 4.5% for the same quarter last fiscal year.
Adjusted operating income from continuing operations increased by 8.1% to GBP2.7 million from GBP2.5 million for the same quarter last fiscal year.
Net Income and Adjusted Net Income
Net income was GBP3.2 million, representing a 1,045.9% increase from GBP0.3 million for the same quarter last fiscal year.
Adjusted net income increased by 179.5% to GBP3.5 million from GBP1.3 million for the same quarter last fiscal year.
Adjusted EBITDA([8])
Adjusted EBITDA was GBP3.1 million, compared to GBP3.6 million for the same quarter last fiscal year.
Net income per Ordinary Share/ADS and Adjusted Net Earnings per Ordinary Share([9]) /ADS([10])
Basic and diluted net income per ordinary share attributable to ordinary shareholders from continuing operations were GBP0.03 each, compared to GBP0.01 each for the same quarter last fiscal year.
Adjusted basic and diluted net income per ordinary share attributable to ordinary shareholders were GBP0.03 each, compared to GBP0.01 each for the same quarter last fiscal year.
Basic and diluted net income per ADS attributable to ADS holders from continuing operations were GBP0.11 each, compared to GBP0.03 each for the same quarter last fiscal year.
Adjusted basic and diluted net income per ADS attributable to ADS holders were GBP0.12 each, compared to GBP0.04 each for the same quarter last fiscal year.
Cash and Working Capital
As of February 28, 2025, the Company had cash and cash equivalents and restricted cash of GBP46.3 million, compared to GBP54.3 million as of August 31, 2024.
[7]. Adjusted gross profit from continuing operations is a non-GAAP financial
measure, which is defined as gross profit from continuing operations,
excluding amortization of intangible assets.
[8]. Adjusted EBITDA is a non-GAAP financial measure, which is defined as net
income/(loss) excluding interest income/(expense), net, income tax
expense/(benefit), depreciation and amortization, share-based compensation
expenses, and income/(loss) from discontinued operations, net of tax.
[9]. Adjusted basic and diluted earnings/(loss) per share is a non-GAAP
financial measure, which is defined as adjusted net income/(loss) attributable
to ordinary shareholders divided by the weighted average number of basic and
diluted ordinary shares.
[10]. Adjusted basic and diluted earnings/(loss) per American Depositary Share
("ADS") is a non-GAAP financial measure, which is defined as adjusted net
income/(loss) attributable to ADS shareholders 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 (7:00 p.m. Beijing/Hong Kong Time) on April 28, 2025.
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 May 5, 2025, by dialing the following telephone numbers:
United States Toll Free: 1-877-344-7529
International: 1-412-317-0088
Replay Passcode: 2410484
CONVENIENCE TRANSLATION
The Company's reporting currency is GBP. 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, the related condensed consolidated statements of operations, and cash flows from GBP into U.S. dollars as of and for the quarter ended February 28, 2025, are solely for the readers' convenience and were calculated at the rate of GBP1.00=US$1.2591, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on February 28, 2025. No representation is made that the GBP amounts could have been, or could be, converted, realized or settled into US$ at that rate on February 28, 2025, 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) 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 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, 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, 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 and amortization of intangible assets. 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, 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 a 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, February 28,
2024 2025
---------- ----------------
GBP GBP USD
ASSETS
Current assets
Cash and cash equivalents 52,991 45,812 57,682
Restricted cash 1,307 435 548
Accounts receivable, net 2,018 2,523 3,177
Amounts due from related
parties, net 1,548 1,520 1,914
Other receivables, deposits
and other assets, net 13,303 9,267 11,668
Inventories 125 796 1,003
---------- ------- -------
Total current assets 71,292 60,353 75,992
---------- ------- -------
Restricted cash - non-current 27 27 34
Property and equipment, net 37,522 35,430 44,610
Intangible assets, net 5,327 5,166 6,505
Goodwill, net 56,634 57,058 71,842
Long-term investments, net 2,623 2,654 3,342
Deferred tax assets, net 206 138 174
Other non-current assets, net 1,013 1,093 1,376
Operating lease right-of-use
assets -- non-current 152,451 149,465 188,191
---------- ------- -------
Total non-current assets 255,803 251,031 316,074
---------- ------- -------
TOTAL ASSETS 327,095 311,384 392,066
========== ======= =======
BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS-CONTINUED
(Amounts in thousands)
As of
--------------------------------
August 31, February 28,
2024 2025
---------- --------------------
GBP GBP USD
LIABILITIES AND EQUITY
Current liabilities
Accounts payable 9,864 10,180 12,818
Contract liabilities -
current 47,872 32,426 40,828
Accrued expenses and
other current
liabilities 20,538 22,632 28,496
Amounts due to related
parties 8,417 4,441 5,592
Income tax payable 8,483 5,979 7,528
Refund liabilities -
current 1,060 937 1,180
Operating lease
liabilities - current 11,420 11,806 14,865
---------- --------- ---------
Total current liabilities 107,654 88,401 111,307
---------- --------- ---------
Deferred tax liabilities 3,348 2,323 2,925
Operating lease
liabilities -- non-
current 150,901 148,137 186,519
Non-current contract
liabilities 93 100 126
---------- --------- ---------
Total non-current liabilities 154,342 150,560 189,570
---------- --------- ---------
TOTAL LIABILITIES 261,996 238,961 300,877
---------- --------- ---------
EQUITY
Share capital 1 1 1
Additional paid-in
capital 220,901 221,515 278,910
Statutory reserves 2,073 3,172 3,994
Accumulated other
comprehensive loss (3,777) (3,480) (4,381)
Accumulated deficit (165,693) (159,851) (201,268)
---------- --------- ---------
Shareholders' equity 53,505 61,357 77,256
Non-controlling interests 11,594 11,066 13,933
---------- --------- ---------
TOTAL EQUITY 65,099 72,423 91,189
---------- --------- ---------
TOTAL LIABILITIES AND EQUITY 327,095 311,384 392,066
========== ========= =========
BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except for shares and per-share data)
Three Months Ended February 29/28 Six Months Ended February 29/28
------------------------------------- -------------------------------------
2024 2025 2024 2025
----------- ------------------------ ----------- ------------------------
GBP GBP USD GBP GBP USD
Revenue 48,528 43,843 55,203 101,834 88,575 111,525
Cost of revenue (33,573) (30,680) (38,629) (69,016) (62,369) (78,529)
Gross profit 14,955 13,163 16,574 32,818 26,206 32,996
Selling, general
and administrative
expenses (12,954) (11,185) (14,083) (25,513) (19,595) (24,672)
Other operating
income 186 367 462 1,169 505 636
Operating income 2,187 2,345 2,953 8,474 7,116 8,960
Interest
(expense)/income,
net (288) 229 288 (194) 288 363
Investment
(loss)/income (49) 7 9 66 9 11
Other expenses (181) (590) (743) (246) $(596.SI)$ (750)
Income before
income taxes and
share of equity in
loss of
unconsolidated
affiliates 1,669 1,991 2,507 8,100 6,817 8,584
Income tax
(expense)/
benefit (668) 1,229 1,547 (2,117) 415 523
Share of equity in
(loss)/ income of
unconsolidated
affiliates (6) - - 14 - -
Net income from
continuing
operations 995 3,220 4,054 5,997 7,232 9,107
(Loss)/income from
discontinued
operations, net of
tax (714) - - 885 - -
Net income 281 3,220 4,054 6,882 7,232 9,107
Net (loss)/income
attributable to
non-controlling
interests
Continuing
operations (37) 16 20 275 291 366
Discontinued
operations 27 - - 218 - -
Net (loss)/income
attributable to
ordinary
shareholders
Continuing
operations 1,032 3,204 4,034 5,722 6,941 8,741
Discontinued
operations (741) - - 667 - -
Net (loss)/income
per share
attributable to
ordinary
shareholders
--Basic and diluted
Continuing
operations 0.01 0.03 0.03 0.05 0.06 0.07
Discontinued
operations (0.01) - - 0.01 - -
Weighted average
shares used in
calculating net
(loss)/income per
ordinary share:
--Basic
Continuing
operations and
discontinued
operations 118,669,795 118,669,795 118,669,795 118,669,795 118,669,795 118,669,795
--Diluted
Continuing
operations and
discontinued
operations 118,669,795 119,320,269 119,320,269 118,669,795 118,862,781 118,862,781
----------- ----------- ----------- ----------- ----------- -----------
Net (loss)/income
per ADS
--Basic and diluted
Continuing
operations 0.03 0.11 0.14 0.19 0.23 0.29
Discontinued
operations (0.02) - - 0.02 - -
BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED
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