Bright Scholar Education Holdings Limited (BEDU) Tops Q2 EPS by 1c, Revenues Beat
Bright Scholar Education Holdings Limited (NYSE: BEDU) reported Q2 EPS of $0.04, $0.01 better than the analyst estimate of $0.03. Revenue for the quarter came in at $76.04 million versus the consensus estimate of $74.64 million.
"We continue to make great strides in advancing our acquisitive growth strategies to scale our business and accelerate expansion of our service offerings to boost student engagement and academic success." said Jerry He, Executive Vice Chairman of Bright Scholar. "We recently entered into agreements to acquire 25% equity interests in Start Camp Education, which provides one-stop solutions in outdoor camp layout and program design and contributed to the opening of Bright Scholar's first outdoor camp this quarter; and 80% equity interests of Sannew School ("Sannew"), the very first American style private boarding school in Wuhan. The proposed acquisition of Sannew represents an excellent strategic fit with Bright Scholar's family of schools, building our prominence in central China. We expect to complete these transactions by May 2019 and continue to expand our business globally."
"We are very pleased with our robust performance across all of our businesses and the investments we have made for future growth." said Derek Feng, Chief Executive Officer of Bright Scholar. "Compared to the second quarter of last fiscal year, our year-over-year revenue growth for the quarter was 57.5%, with 24.3% from organic growth and 33.2% from acquisitions. The adjusted gross profit, adjusted operating income, adjusted EBITDA and adjusted net income increased by 113.0%, 7,225.1%, 98.0%, 991.2%, year-over-year, respectively. Additionally, compared to the first half of last fiscal year the average student enrollment increased by 22.7% year-over-year to 42,035 for the first half of fiscal 2019 with blended utilization increased to 71.0% from 60.4%."
"Improving academic outcomes remains the number one priority for Bright Scholar. I am proud of this year's academic accomplishments." Mr. Feng continued, "As of April 22, 2019, 89% of our 2019 graduating students participating in AP, A Level and DP programs have received over 670 offers from the global top 50 institutions including four from Oxbridge, two from University of Chicago and five from UC Berkeley."
"Overseas students consulting services continues to perform. Foundation Global Education ("Foundation") provides consulting services for students pursuing study in top tier overseas boarding schools and universities. In 2019 application season, 44.7% of its students applying for US boarding schools gained admission to leading boarding schools including Phillips Exeter Academy, St. Paul's School and Milton Academy, and 56.0% of its students applying for US universities were accepted to the US News Ranking's top ranking institutions, including Yale, Cornell and University of Chicago."
"Can-Achieve now represents over 900 prestigious overseas universities in the US, Canada, UK, and Australia to recruit students from China. It helped over 6,000 Chinese students to pursue higher education overseas in 2018."
"Our deep collaboration with Country Garden is crucial to the expansion of our school network. As of the release date, we have entered into agreements with Country Garden to operate a total of 25 kindergartens and two bilingual schools with a total capacity of approximately 11,000 students."
Mr. Feng concluded, "Bright Scholar delivered a strong set of results again this quarter. I am proud of our team for maintaining its focus on students, improving their academic success and producing great financial results. We will continue to execute on our organic and acquisitive growth strategy, optimize our operations, drive synergies from acquisitions, and to reward our shareholders with a profitable business."
For earnings history and earnings-related data on Bright Scholar Education Holdings Limited (BEDU) click here.