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Hot Stock of the Day: IMAX Corporation (NYSE: IMAX)

NEW YORK, June 25, 2019 – Shares of IMAX Corporation (NYSE: IMAX) declined -0.40% to $19.83. The stock traded total volume of 439.188K shares higher than the average volume of 428.88K shares.

IMAX Corporation (IMAX), the world leader in immersive audience experiences, reported revenues of $80.20M, gross profit of $45.10M and net income attributable to common shareholders of $8.30M, or $0.13 per diluted share, for the first quarter ended March 31, 2019. Adjusted net income attributable to common shareholders for the quarter was $10.80M, or $0.18 per diluted share, and adjusted EBITDA was $28.50M.

First Quarter 2019 Results

Box Office Update:

Gross box office from IMAX DMR® films was $256.30M in the first quarter of 2019 contrast to $246.90M in the first quarter of 2018. Gross box office was generated mainly by the release of 24 films (12 new and 12 carryovers), as contrast to 22 films (14 new and 8 carryovers) exhibited in the first quarter of 2018.

First Quarter Consolidated Results:

The gross margin across all segments in the first quarter of 2019 was $45.10M, or 56.3% of total revenues, contrast to $50.70M, or 59.6% of total revenues, in the first quarter of 2018. Operating expenses (which includes SG&A, excluding stock-based compensation, plus R&D) were $24.80M in the quarter.

First Quarter Segment Results

Network Business:

Network business revenues were $45.80M in the quarter, contrast with $44.90M in the prior-year period. Gross margin for the network business was 68.9% in the most recent quarter, contrast to 70.2% in the prior-year period.
IMAX DMR revenues were $28.00M in the first quarter of 2019, contrast to $27.10M in the first quarter of 2018. Gross margin for the IMAX DMR segment was 70.8%, contrast to 69.4% in the prior-year comparative period.
Revenues from joint revenue-sharing arrangements were consistent at $17.90M in the quarter and the prior-year period. Gross margin for joint revenue-sharing arrangements was 66.1%, contrast to 71.3% in the prior-year comparative period.

Theater Business:

Theater business segment revenues were $30.30M in the quarter, contrast with $35.00M in the prior-year period, mainly reflecting the installation of seven fewer sales-type theaters, partially offset by four additional hybrid joint revenue sharing lease arrangements and one additional system upgrade. Average revenue per sales and sales-type lease systems for new systems was $1.40M, consistent with last year.

IMAX has the market capitalization of $1.22B and its EPS growth ratio for the past five years was -10.90%. The return on assets ratio of the Company was 2.60% while its return on investment ratio stands at 6.50%. Price to sales ratio was 3.31 while 86.00% of the stock was owned by institutional investors.

Stock Roundup: Forward Air Corporation (NASDAQ: FWRD)

GREENEVILLE, Tenn., June 22, 2019 – Shares of Forward Air Corporation (NASDAQ: FWRD) declined -1.97% to $57.81. The stock grabbed the investor’s attention and traded 193.121K shares as compared to its average daily volume of 164.98K shares. The stock’s institutional ownership stands at 98.20%.

Forward Air Corp. (FWRD) recently reported first-quarter earnings of $18.40M.

Revenue for the quarter ended March 31, 2019 increased 6.2% to $321.50M from $302.60M for the same quarter in 2018. Income from operations was $24.70M contrast to $24.20M in the prior year quarter. Net income during the quarter was $18.40M contrast to $17.70M in the same quarter of 2018. Net income per diluted share for the first quarter of 2019 was $0.64 contrast to $0.60 in the prior year quarter.

For the three months ended March 31, 2019, the Company generated $41.50M of cash flow from operations contrast to $40.80M for the same period in 2018.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) were $35.60M in the first quarter of 2019 contrast to $34.90M in the same period of 2018. Free cash flow was $37.80M in the first quarter of 2019 contrast to $35.20M in the prior year quarter.

FWRD has a market value of $1.67B while its EPS was booked as $3.17 in the last 12 months. The stock has 28.86M shares outstanding. In the profitability analysis, the company has gross profit margin of 46.40% while net profit margin was 6.90%. Beta value of the company was 1.58; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.70.

Earnings Recap: Huron Consulting Group Inc. (NASDAQ: HURN)

CHICAGO, June 21, 2019 – Huron Consulting Group Inc. (HURN) recently stated first-quarter net income of $3.30M, after reporting a loss in the same period a year earlier.

FIRST QUARTER 2019 RESULTS FROM CONTINUING OPERATIONS

Revenues increased $10.80M, or 5.6%, to $204.40M for the first quarter of 2019, contrast to $193.70M for the first quarter of 2018.

Net income from continuing operations was $3.40M for the first quarter of 2019, contrast to net loss from continuing operations of $3.20M for the same prior year period. Diluted earnings per share from continuing operations was $0.15 for the first quarter of 2019, contrast to diluted loss per share from continuing operations of $0.15 for the first quarter of 2018.

First quarter 2019 earnings before interest, taxes, depreciation and amortization (“EBITDA”) increased $5.10M, or 41.5%, to $17.30M from $12.20M in the same prior year period.

Adjusted EBITDA increased $4.30M, or 31.5%, to $18.00M, or 8.8% of revenues, in the first quarter of 2019, from $13.70M, or 7.1% of revenues, in the same quarter last year. Adjusted net income from continuing operations increased $4.60M to $8.90M, or $0.40 per diluted share, for the first quarter of 2019, from $4.20M, or $0.19 per diluted share, for the same period in 2018.

OUTLOOK FOR 2019:

Based on presently available information, the company is affirming guidance for full year 2019 revenues before reimbursable expenses in a range of $800.00M to $840.00M. The company also anticipates adjusted EBITDA as a percentage of revenues in a range of 12.0% to 12.5% and non-GAAP adjusted diluted earnings per share to increase 8% to 20% over 2018.

Hot Stock to Track: Francesca’s Holdings Corporation (NASDAQ: FRAN)

HOUSTON, June 21, 2019 – Francesca’s Holdings Corporation (FRAN) recently stated that net sales reduced 14% to $119.30M from $138.50M in the comparable prior year quarter. The fourth quarter of fiscal year 2017 included about $5.00M of sales for the 53rd week. The net sales decline in the fourth quarter of 2018 reflects a 14% decrease in comparable sales because of a decline in boutique traffic and a lower conversion rate. The Company opened one new boutique and closed 12 boutiques during the fourth quarter, bringing the total boutique count to 727 at the end of the quarter.

Selling, general and administrative (SG&A) expenses reduced 4% to $48.10M from $50.30M in the prior year quarter. Adjusted SG&A was $47.40M and excludes $1.40M of professional fees associated with the Company’s review of planned and financial alternatives and the turnaround plan that started in January 2019 and $0.80M of stock-based compensation reversal associated with the resignation of the Company’s former Chief Executive Officer in February 2019. The decrease in adjusted SG&A as compared to the comparable prior year period was because of a $3.10M decrease in payroll and related expenses as a result of labor efficiencies gained at the boutique level, lower accrued severance and additional payroll expenses for the 53^rd week of fiscal year 2017.

During the fourth quarter, the Company recognized $5.60M of non-cash asset impairment charges. Of the total amount, $2.70M was associated with the impairment of boutique assets for 24 underperforming boutiques for which the remaining, or a portion of the remaining, net book value of their assets are no longer expected to be recoverable. The remaining $2.90M was related to the write-off of boutique furniture, fixtures and supplies that are no longer intended to be used as a result of the Company postponing new boutique openings and remodels in future periods.

Loss from operations was $6.80M contrast to income from operations of $10.40M in the prior year quarter. Excluding the professional fees, reversal of stock-based compensation and asset impairment charges, adjusted loss from operations was $0.60M.

Income tax expense for the fourth quarter of fiscal year 2018 included a non-cash charge of $17.10M associated with the valuation allowance offered on the Company’s net deferred tax assets resulting in an effective tax rate of 212.1%. This valuation allowance was recorded in fiscal year 2018 because it was concluded that it is more likely than not that certain deferred tax assets will not be realized. Income tax expense in the fourth quarter of fiscal year 2017 included a non-cash charge of $3.30M in connection with the remeasurement of the Company’s net deferred tax assets using the lower federal corporate income tax rate under the Tax Cuts and Jobs Act resulting in an effective tax rate of 63.9%. Excluding the valuation allowance and remeasurement of net deferred tax assets, the adjusted effective tax rate in the fourth quarter of fiscal year 2018 was 38.8% contrast to 31.5% in the comparable prior year quarter.

Net loss for the fourth quarter was $21.30M, or $0.61 diluted loss per share, contrast to prior year quarter net income of $3.70M, or $0.10 diluted earnings per share. Adjusted net loss for the fourth quarter was $0.40M, or $0.01 adjusted diluted loss per share contrast to adjusted net income of $7.10M, or $0.20 adjusted diluted earnings per share, in the comparable prior year quarter.

FULL YEAR RESULTS

Net sales reduced 9% to $428.10M from $471.70M in the prior year. This decrease was because of a 14% decrease in comparable sales contrast to an 11% decrease in the prior year because of the declines in both boutique traffic and conversion rate. In Addition To, fiscal year 2017 included about $5.00M of sales for the 53^rdweek. During fiscal year 2018, the Company opened 32 new boutiques and closed 26 boutiques contrast to 60 new boutiques opened and 10 boutiques closed during fiscal year 2017.

The Company recognized $20.10M of non-cash asset impairment charges mainly associated with the impairment of boutique assets for 153 underperforming boutiques for which the remaining, or a portion of the remaining, net book value of their assets are no longer expected to be recoverable.

The Company recognized $17.10M of valuation allowance on the Company’s net deferred tax assets.

Net loss for fiscal year 2018 totaled $40.90M, or $1.18 diluted loss per share, contrast to net income of $15.60M, or $0.43 diluted earnings per share, in the prior year. Adjusted net loss for fiscal year 2018 was $9.00M, or $0.26 adjusted diluted loss per share contrast to adjusted net income of $18.90M, or $0.52 adjusted diluted earnings per share for fiscal year 2017.

BALANCE SHEET SUMMARY

Total cash and cash equivalents at the end of the year were $20.10M contrast to $31.30M at the end of the comparable prior year. The Company had $10.00M outstanding borrowings under its asset based revolving credit facility at the end of the fiscal 2018 and, as revealed in a previous release, borrowed an additional $5.00M during the first quarter of fiscal 2019. The Company had no debt at the end fiscal 2017. The Company estimates that, as of May 2, 2019, estimated cash and cash equivalents were about $13.00M. Included in the cash balance estimate is an income tax refund of $8.50M received on April 22, 2019. Moreover, the estimated cash balance reflects a $50M payment on the Asset Based Revolving Credit Facility bringing the outstanding balance back down to $10.00M with an estimated $14.60M in additional availability.

The Company ended the quarter with $30.50M of inventory on hand contrast to $26.80M at the end of the comparable prior year period. Excluding $3.70M of inventory reserve for product that was eventually marked out of stock, average ending inventory per boutique was flat as compared to the prior year period.

GNC Holdings Inc. (NYSE: GNC) Reports Consolidated Revenue of $564.80M in the First Quarter of 2019

PITTSBURGH, June 20, 2019 – GNC Holdings, Inc. (GNC) recently stated consolidated revenue of $564.80M in the first quarter of 2019, contrast with consolidated revenue of $607.50M in the first quarter of 2018. The decrease in revenue was mainly a result of the transfer of the Nutra manufacturing and China e-commerce businesses to the newly formed joint ventures and the closure of company-owned stores from our store portfolio optimization strategy.

For the first quarter of 2019, the Company stated a net loss of $15.30M contrast with net income of $6.20M in the prior year quarter. Diluted loss per share was $0.23 in the current quarter contrast with diluted earnings per share (“EPS”) of $0.07 in the prior year quarter. In the first quarter of 2019, the Company recorded a $16.80M loss on forward contracts related to the issuance of convertible preferred stock as a result of the Harbin investment and a $19.50M loss on the exchange of net assets for the newly formed joint ventures. In the prior year quarter the Company recorded a $16.70M loss on debt refinancing. Excluding these items and other expenses, adjusted net income was $19.00M in the current quarter, contrast with adjusted net income of $20.10M in the prior year quarter. Adjusted EPS was $0.15 in the current quarter contrast with $0.24 in the prior year quarter.

Adjusted EBITDA was $65.90M, or 11.7% of revenue in the current quarter contrast with $59.30M, or 9.8% of revenue in the prior year quarter.

Cash Flow and Liquidity Metrics:

For the three months ended March 31, 2019, the Company generated net cash from operating activities of $68.70M contrast with $25.10M for the three months ended March 31, 2018. The increase was driven by favorable working capital changes mainly because of a boost in accounts payable as a result of the Company’s cash management efforts and a boost in accounts payable related to the establishment of the manufacturing joint venture.

For the three months ended March 31, 2019, the Company generated $154.30M in free cash flow which includes $101.0M proceeds from the Nutra manufacturing transaction, contrast with $37.40M for the three months ended March 31, 2018. The Company defines free cash flow as cash offered by operating activities (excluding fees regarding the debt refinancing) less cash used in investing activities. At March 31, 2019, the Company’s cash and cash equivalents were $137.10M and debt was $888.40M. No borrowings were outstanding on the Revolving Credit Facility at the end of the first quarter of 2019.

Earnings Roundup: The Greenbrier Companies Inc. (NYSE: GBX)

LAKE OSWEGO, Ore., June 20, 2019 – Greenbrier Companies Inc. (GBX) recently stated fiscal second-quarter net income of $2.80M, or $0.08 per diluted share, on revenue of $658.70M. Quarterly results included $4.70M, or $0.14 per diluted share, related to loss accruals on certain railcar contracts and facility closure costs in the railcar repair operations.

Second Quarter Highlights

Adjusted EBITDA for the quarter was $37.40M, or 5.7% of revenue, and included $7.60M related to railcar contract loss accruals and facility closure costs.
Orders for 3.80K diversified railcars were received during the quarter, valued at nearly $450.0M.
New railcar backlog as of February 28, 2019 was 26.0K units with an estimated value of $2.70B. New railcar deliveries totaled 5.10K units for the quarter.

Stock to Watch: FTI Consulting Inc. (NYSE: FCN)

On Tuesday, Shares of FTI Consulting Inc. (NYSE: FCN) gained 0.14% to $84.04. The stock grabbed the investor’s attention and traded 193.910K shares as compared to its average daily volume of 255.19K shares. The stock’s institutional ownership stands at 99.80%.

FTI Consulting, Inc. (FCN) recently stated that first quarter 2019 revenues of $551.30M increased $53.50M, or 10.7%, contrast to revenues of $497.80M in the prior year quarter. Excluding the estimated negative impact from foreign currency translation (“FX”), revenues increased $63.00M, or 12.6%, contrast to the prior year quarter. The increase in revenues was driven by higher demand across all business segments. Net income of $62.60M contrasts to $38.90M in the prior year quarter. The increase in net income was because of higher operating profits across all business segments, lower interest expense and a lower effective tax rate.

Adjusted EBITDA of $96.10M, or 17.4% of revenues, contrast to $72.30M, or 14.5% of revenues, in the prior year quarter. The increase in Adjusted EBITDA was because of higher revenues, which was partially offset by a boost in compensation and benefits expenses, mainly related to a 7.7% increase in billable headcount contrast to the prior year quarter.

Cash Position and Capital Allocation:

Net cash used in operating activities of $102.10M for the quarter ended March 31, 2019 contrast to net cash used in operating activities of $69.20M for the quarter ended March 31, 2018. The year-over-year increase in cash used in operating activities was because of higher annual bonus payments and a boost in salaries related to headcount growth, which was partially offset by a boost in cash collected resulting from higher revenues contrast to the prior year quarter.

During the quarter, the Company used about $21.90M to repurchase 327.978K shares of its common stock at an average price per share of $66.70. As of March 31, 2019, about $150.70M remained available for stock repurchases under the Company’s $400.00M stock repurchase authorization.

Cash and cash equivalents of $179.20M at March 31, 2019 contrast to $152.00M at March 31, 2018 and $312.10M at December 31, 2018. Total debt, net of cash, of $137.00M at March 31, 2019 contrast to $293.00M at March 31, 2018 and $4.20M at December 31, 2018. The sequential increase in total debt, net of cash, was mainly because of a boost in the use of cash for operating activities, which included annual bonus payments. Total debt was unchanged contrast to December 31, 2018.

FCN has a market value of $3.21B while its EPS was booked as $4.56 in the last 12 months. The stock has 38.22M shares outstanding. In the profitability analysis, the company has gross profit margin of 34.80% while net profit margin was 8.40%. Beta value of the company was 0.28; beta is used to measure riskiness of the security.

Hot Stock under Review: Franklin Covey Co. (NYSE: FC)

On Tuesday, Shares of Franklin Covey Co. (NYSE: FC) inclined 1.03% to $31.33. The stock traded total volume of 15.738K shares lower than the average volume of 29.84K shares.

Franklin Covey Co. (FC) recently stated a loss of $3.50M in its fiscal second quarter.

Financial Overview:

Net Sales: Consolidated revenue for the second quarter of fiscal 2019 increased 8% to $50.40M, a boost of $3.80M, contrasts with net sales of $46.50M in the second quarter of fiscal 2018. Excluding the impact of foreign exchange, the Company’s consolidated sales grew 10% contrast with the prior year. Enterprise Division sales increased 8% to $39.30M, a $3.00M increase contrast with $36.30M in last year’s second quarter. Excluding the impact of foreign exchange, Enterprise Division sales grew 10% contrast with the prior year. Enterprise Division sales were favorably influenced by increased direct office revenues, both domestically and internationally, as well as by growth in its government services revenues. The second quarter acquisition of the licensee that served Germany, Switzerland, and Austria (GSA) added $0.50M of new international direct offices revenues and is expected to provide noteworthy future growth opportunities. Education Division revenues also increased 8% to $9.70M, a boost of $0.70M, contrast with $9.00M in the second quarter of fiscal 2018.

Deferred Subscription Revenue and Unbilled Deferred Revenue: During the second quarter of fiscal 2019, the Company’s subscription and subscription-related revenue grew 16% to $23.40M contrast with $20.20M in the second quarter of the prior year. At February 28, 2019, the Company had $64.50M of billed and unbilled deferred subscription revenue, a 36% increase, or $17.00M, over $47.50M at the end of last year’s second quarter. The Company’s balance of deferred subscription revenue (billed) grew 23% in the second quarter to $39.60M, a boost of $7.50M contrast with the end of last year’s second quarter. The Company’s balance of unbilled deferred subscription revenue increased to $25.00M at February 28, 2019, which represents a 61% or $9.50M increase over unbilled deferred revenue at the end of last year’s second quarter. Unbilled deferred revenue represents business that is contracted but unbilled and excluded from the Company’s balance sheet.
Gross profit: Second quarter 2019 gross profit increased 8% to $35.40M contrast with $32.70M in the prior year. The increase in gross profit was mainly because of increased sales as described above. The Company’s gross margin for the quarter ended February 28, 2019 remained strong at 70.2 percent of sales contrast with 70.3 percent in the second quarter of fiscal 2018.
Operating Expenses: Although the Company’s selling, general, and administrative (SG&A) expenses for the quarter increased by $0.80M contrast with the prior year, as a percentage of revenue, SG&A expenses improved to 71.3% contrast with 75.4% in the second quarter of fiscal 2018. The increase in SG&A expense was mainly related to increase associate costs resulting from increased commissions on higher sales and the addition of GSA personnel, who were formerly employed by a licensee.
Operating Income (Loss): The Company stated a loss from operations for the second quarter, but its loss improved by $1.60M to $(3.60)M contrast with $(5.10)M in the second quarter of the prior year. Excluding the impact of foreign exchange, the Company’s operating loss improved by $2.00M contrast with the prior year.
Adjusted EBITDA: Adjusted EBITDA for the second quarter improved $1.60M to $1.00M, contrast with a loss of $(0.70)M in the second quarter of fiscal 2018. In constant currency, Adjusted EBITDA in the second quarter improved $2.10M contrast to the second quarter of fiscal 2018.

Net Income (Loss): The Company stated a second quarter 2019 net loss of $(3.50)M contrast with a net loss of $(2.70)M in the second quarter of fiscal 2018, reflecting the sharply reduced income tax benefit described above.
Cash Flows from Operating Activities: The Company’s cash flows from operating activities increased 43%, or $4.00M, to $13.40M through the first two quarters of fiscal 2019, contrast with $9.40M through the first two quarters of fiscal 2018.
Cash and Liquidity Remain Strong: The Company’s balance sheet and liquidity position remained strong with $13.10M of cash at February 28, 2019, contrast with $10.20M at August 31, 2018. At February 28, 2019, the Company had $21.60M of available borrowing on its revolving line of credit facility.
Fiscal 2019 Outlook: The Company reaffirms its formerly declared Adjusted EBITDA guidance for fiscal 2019, which is expected to be in the range of $18.0M to $22.0M, excluding the impact of foreign exchange, contrast with $11.90M in fiscal 2018.

Fiscal 2019 Year-to-Date Financial Results:

Consolidated revenue for the first two quarters of fiscal 2019 increased 10% to $104.20M contrast with $94.50M in the first half of fiscal 2018. Excluding the impact of foreign exchange, the Company’s sales grew 11% over the first two quarters of the prior year. Enterprise Division sales increased 10% to $81.50M contrast with $73.80M for the first two quarters of fiscal 2018. Excluding the impact of foreign exchange, Enterprise Division sales increased 12% over the first half of fiscal 2018. Enterprise Division sales were favorably influenced by increased direct office revenues; both domestically and internationally, increased government services sales, and increased international licensee revenues. Education Division revenues also increased 10% to $20.00M contrast with $18.20M in the first two quarters of the prior year. Consolidated gross profit for the first two quarters of fiscal 2019 was $72.10M contrast with $65.60M in the first two quarters of the prior year. Gross margin for the first half of fiscal 2019 was consistent with the prior year at 69.2% contrast with 69.4% in the first half of fiscal 2018.

Selling, general, and administrative expenses for the first two quarters of fiscal 2018 increased $1.60M contrast with the first half of fiscal 2018, but reduced as a percent of revenue to 67.7% contrast with 72.9% in the first two quarters of fiscal 2018. The increase was mainly because of increased commissions on higher sales, new sales and sales related personnel, and personnel at the Company’s new GSA direct office. Depreciation expense increased $1.00M mainly from noteworthy information systems investments in fiscal 2018. The Company’s loss from operations through February 28, 2019 improved to $(4.20)M contrast with a loss of $(8.40)M in the first half of fiscal 2018. Adjusted EBITDA for the two quarters ended February 28, 2019 improved $4.20M to $4.10M contrast with a $(0.10)M loss through the first two quarters of fiscal 2018. Excluding the impact of foreign currency, Adjusted EBITDA for the first half of fiscal 2019 increased $4.80M contrast with the prior year. Net loss for the first two quarters of fiscal 2018 was $(4.90)M, or $(.35) per share, contrast with a $(5.10)M loss, or $(.37) per share, in the first half of fiscal 2018.

FC has the market capitalization of $441.44M and its EPS growth ratio for the past five years was -21.80%. The return on assets ratio of the Company was -2.80% while its return on investment ratio stands at -4.30%. Price to sales ratio was 2.01 while 45.00% of the stock was owned by institutional investors.

Investor’s Watch List: New Oriental Education & Technology Group Inc. (NYSE: EDU)

On Friday, Shares of New Oriental Education & Technology Group Inc. (NYSE: EDU) gained 0.63% to $90.76. The stock grabbed the investor’s attention and traded 646.375K shares as compared to its average daily volume of 1.36M shares. The stock’s institutional ownership stands at 85.80%.

New Oriental Education & Technology Group Inc. (EDU) stated fiscal third-quarter net income of $97.40M.

Financial Results for the Third Fiscal Quarter Ended February 28, 2019

Net Revenues:

For the third fiscal quarter of 2019, New Oriental stated net revenues of US$796.70M, representing a 28.9% increase year-over-year. Net revenues from educational programs and services for the third fiscal quarter were US$727.10M, representing a 28.7% increase year-over-year. The growth was mainly driven by increases in student enrollments in K-12 after-school tutoring courses.

Operating Costs and Expenses:

Operating costs and expenses for the quarter were US$700.90M, representing a 25.2% increase year-over-year. Non-GAAP operating costs and expenses for the quarter, which exclude share-based compensation expenses, were US$683.00M, representing a 27.2% increase year-over-year.

Cost of revenues increased by 25.6% year-over-year to US$337.50M, mainly because of increases in teachers’ compensation for more teaching hours and rental costs for the increased number of schools and learning centers in operation.
Selling and marketing expenses increased by 13.3% year-over-year to US$87.50M, mainly because of increases in brand promotion expenses and selling and marketing staff’s compensation.
General and administrative expenses for the quarter increased by 29.1% year-over-year to US$276.00M. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, were US$258.00M, representing a 35.1% increase year-over-year. The increase was mainly because of increased headcount as the Company grew its network of schools and learning centers, as well as increases in R&D expenses and human resources expenses related to the development of the Company’s online and offline integrated education ecosystem.

Total share-based compensation expenses, which were allocated to related operating costs and expenses, reduced by 21.1% to US$18.00M in the third fiscal quarter of 2019.

Operating Income and Operating Margin:

Operating income for the quarter was US$95.80M, representing a 64.1% increase year-over-year. Non-GAAP operating income was US$113.80M, representing a 40.2% increase year-over-year. Operating margin for the quarter was 12.0%, contrast to 9.4% in the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses, for the quarter was 14.3%, contrast to 13.1% in the same period of the prior fiscal year.

Gain from Fair Value Change of Long-Term Investments:

Gain from fair value changes of long term investments for the quarter was US$6.50M.

Net Income and EPS:

Net income attributable to New Oriental for the quarter was US$97.40M, representing a 42.5% increase from the same period of the prior fiscal year. Basic and diluted earnings per ADS attributable to New Oriental were US$0.62 and US$0.61, respectively.

Non-GAAP Net Income and Non-GAAP EPS:

Non-GAAP net income attributable to New Oriental for the quarter was US$108.90M, representing a 19.4% increase from the same period of the prior fiscal year. Non-GAAP basic and diluted earnings per ADS attributable to New Oriental were US$0.69 and US$0.69, respectively.

Cash Flow:

Net operating cash flow for the third fiscal quarter of 2019 was about US$114.10M. Capital expenditures for the quarter were US$83.60M, which were mainly attributable to the opening of 59 facilities and renovations at existing learning centers.

Balance Sheet:

As of February 28, 2019, New Oriental had cash and cash equivalents of US$844.90M, as contrast to US$983.30M as of May 31, 2018. In addition, the Company had US$96.70M in term deposits, and US$1,792.70M in short-term investment.

Financial Results for the Nine Months Ended February 28, 2019

For the first nine months of fiscal year 2019, New Oriental stated net revenues of US$2,253.60M, representing a 29.0% increase year-over-year.

Total student enrollments in academic subjects tutoring and test preparation courses in the first nine months of fiscal year 2019 increased by 31.7% to about 5,626,700.

Income from operations for the first nine months of fiscal year 2019 was US$228.60M, representing a 10.8% increase year-over-year. Non-GAAP income from operations for the first nine months of fiscal year 2019 was US$274.20M, representing a 13.5% increase year-over-year.

Non-GAAP net income attributable to New Oriental for the first nine months of fiscal year 2019 was US$316.00M, representing a 18.7% increase year-over-year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental for the first nine months of fiscal year 2019 amounted to US$1.99 and US$1.99 respectively.

Outlook for Fourth Quarter of Fiscal Year 2019

New Oriental anticipates total net revenues in the fourth quarter of fiscal year 2019 (March 1, 2019 to May 31, 2019) to be in the range of US$820.60M to US$840.60M, representing year-over-year growth in the range of 17% to 20%. This forecast takes into account factors counting the industry seasonality and practices in compliance with the most recent regulatory requirements.

EDU has a market value of $14.31B while its EPS was booked as $1.46 in the last 12 months. The stock has 157.69M shares outstanding. In the profitability analysis, the company has gross profit margin of 55.50%. Beta value of the company was 1.59; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 1.80.