• Revenue: $44.7 million from continuing operations, down from $55.5 million year-over-year.
• Overseas Study Consulting Revenue: Increased by 5.8% to $9.6 million.
• Schools Revenue: $25.7 million.
• Other Revenue: $9.4 million.
• Gross Profit: $13 million from continuing operations, down from $17.9 million year-over-year.
• Gross Margin: 29.2%, compared to 33.5% in the previous year.
• G&A Expenses: Decreased by 33% year-over-year to $8.4 million.
• Adjusted EBITDA: $6.4 million, compared to $7.6 million year-over-year.
• Net Income: $4 million from continuing operations, down from $5 million year-over-year.
• Adjusted Net Income: $4.4 million, compared to $5.1 million year-over-year.
• Cash and Cash Equivalents: $47.5 million as of November 30, 2024, compared to $54.3 million as of August 31, 2024.
• Share Repurchase Plan: Up to $1.2 million of the company's ADSs over the next 12 months.

• Warning! GuruFocus has detected 4 Warning Signs with BEDU.

Release Date: January 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bright Scholar Education Holdings Ltd (NYSE:BEDU) achieved solid quarterly results despite an evolving external environment.
• The company successfully expanded its product and service offerings to international markets including Vietnam, Canada, the United States, Pakistan, and Taiwan.
• Significant progress was made in optimizing operational efficiency, resulting in a 33% year-over-year decrease in SG&A expenses.
• The overseas study consulting business achieved a year-over-year revenue increase of 5.8%.
• A share repurchase plan was initiated, underscoring the company's commitment to enhancing shareholder value.

Negative Points

• Revenue from continuing operations decreased to $44.7 million from $55.5 million in the same quarter last year.
• Gross profit from continuing operations fell to $13 million compared to $17.9 million for the same quarter last fiscal year.
• Gross margin from continuing operations decreased to 29.2% from 33.5% in the same quarter last fiscal year.
• Net income from continuing operations decreased to $4 million from $5 million in the same quarter last fiscal year.
• Cash and cash equivalents decreased to $47.5 million from $54.3 million as of August 31, 2024.

Q & A Highlights

Q: Can you share the average enrollment for the overseas schools in 2025 or the last quarter? A: For September 2024, we had 1,103 new students, and for January 2025, we had 213 new students. The total enrollment is very close to 3,000 students.

Q: Could you help me understand the movement in cash in the last quarter, specifically in operating and investing activities? A: We used approximately 5.7 million in operating activities and generated 3.6 million from investing activities. The decrease in cash from operating activities is mainly due to receiving tuition and accommodation fees in advance and then spending on operational costs.

Q: Regarding the decision to buy back shares, how do you balance this with paying dividends, considering the low liquidity in the stock? A: The decision for share buybacks was based on having sufficient cash reserves and the belief that the market price is far from the intrinsic value of the company. We aim to provide confidence in our future operations, which should encourage more market activity and improve liquidity.

Q: Could you elaborate on the company's vision for the next five to ten years, especially regarding market focus and student groups? A: We are pursuing a dual-engine strategy focusing on international school business and student recruitment. We aim to expand our presence in markets like the US, Middle East, South America, and Asia. Our goal is to become a major K-12 education service provider for international education, leveraging our strong foundation in the UK.

Q: You mentioned the company was not profitable before. Does this mean you prefer to pay dividends from current year earnings once they are sustainable? A: Yes, we prefer to establish a sustainable and consistent dividend policy based on current year earnings rather than relying on accumulated retained earnings from previous years.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.