Bright Scholar Announces Unaudited Financial Results for FY2020 1st Fiscal Quarter.

FOSHAN, China: Bright Scholar Education Holdings Limited ("Bright Scholar," the "Company," "we" or "our") (NYSE: BEDU), a global premier education service company, today announced its unaudited financial results for the first fiscal quarter ended November 30, 2019.

First Fiscal Quarter Ended November 30, 2019 Financial Highlights

(in comparison to the same period of the last fiscal year):

RMB in million

Except EPS

First Fiscal Quarter Ended November 30, 2019

First Fiscal Quarter Ended November 30, 2018

YoY % Change

Revenue

1,098.0

649.9

69.0%

Gross Profit

473.8

296.6

59.7%

Gross Margin

43.1%

45.6%

(2.5%)

Operating Income

267.2

182.2

46.7%

Operating Margin

24.3%

28.0%

(3.7%)

Net Income

204.3

158.3

29.0%

Net Margin

18.6%

24.4%

(5.8%)

Adjusted Gross Profit (1)

484.8

299.3

62.0%

Adjusted Gross Margin (1)

44.2%

46.1%

(1.9%)

Adjusted Operating Income (2)

288.3

191.4

50.6%

Adjusted Operating Margin (2)

26.3%

29.5%

(3.2%)

Adjusted Net Income (3)

225.4

167.5

34.5%

Adjusted Net Margin (3)

20.5%

25.8%

(5.3%)

Adjusted EBITDA (4)

352.5

217.4

62.1%

Adjusted EBITDA Margin (4)

32.1%

33.5%

(1.4%)

Basic and Diluted Earnings per Share

1.59

1.22

30.3%

Adjusted Basic and Diluted Earnings per Share (5)

1.76

1.30

35.4%

____________________

Adjusted gross profit is defined as gross profit excluding amortization of intangible assets. Adjusted gross margin is defined as adjusted gross profit/(loss) divided by revenue.

Adjusted operating income/(loss) is defined as operating income/(loss) excluding share-based compensation expense and amortization of intangible assets. Adjusted operating margin is defined as adjusted operating income/(loss) divided by revenue.

Adjusted net income/(loss) is defined as net income/(loss) excluding share-based compensation expense and amortization of intangible assets. Adjusted net margin is defined as adjusted net income/(loss) divided by revenue.

Adjusted EBITDA is defined as net income/(loss) excluding interest income, net; income tax expense/benefit; depreciation and amortization, and share-based compensation expense. Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue.

Adjusted basic and diluted EPS is defined as adjusted net income/(loss) attributable to ordinary shareholders (net income/(loss) to ordinary shareholders excluding share-based compensation expense and amortization of intangible assets) divided by the weighted average number of basic and diluted ordinary shares or American depositary shares (each an "ADS"), each representing one Class A ordinary share of the Company, on an as-converted basis.

For more information on these adjusted financial measures, please see the section captioned under "Non-GAAP Financial Measures" and the tables captioned "Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this release.

Domestic K-12 Schools Highlights

(in comparison to the same period of the last fiscal year):

The domestic K-12 schools comprises of international schools, bilingual schools and kindergartens in China

Average number of students increased by 17.4% to 48,645 with average tuition and fees increased by 3.2% to RMB13,711

Revenue increased by 21.7% to RMB669.7 million and accounted for 60.9% of total revenue

Gross margin increased from 47.8% to 48.5%, and operating margin increased from 34.3% to 37.4%

Plan to open 7 kindergartens in FY2020, with 4 to be operated in collaboration with Country Garden

Overseas Schools Highlights

The overseas schools comprises all overseas schools such as Bournemouth, St. Michael's, Bosworth and CATS

The average number of students of our overseas schools amounted to 3,220

Revenue from all acquired business(6) fully reflected in the first fiscal quarter amounted to RMB259.2 million and accounted for 23.6% of total revenue

Gross margin was 32.2% for the quarter and operating margin was 3.4% including impact from transition related expenses

____________________

6. Acquired business is business acquired after FY19 Q1.

   Complementary Education Services Highlights

   (in comparison to the same period of the last fiscal year):

   The complementary education services comprises language training, overseas study counselling, career counselling, study tours and camps and others

   Revenue increased by 69.7% to RMB169.1 million and accounted for 15.5% of total revenue

   Gross margin increased from 33.7% to 38.6%, and operating margin increased from 18.1% to 22.3%

   "We are very pleased with the tremendous progress we continue to make as we transform and scale Bright Scholar to better serve the evolving needs of our students in a fast-changing education industry," said Jerry He, Executive Vice Chairman of Bright Scholar. "The strategic investments we made across our business segments in the past years have given us a strong start in the 2020 fiscal year. We scaled our business significantly with acquired business contributed to over RMB315 million in revenue and RMB46 million in adjusted EBITDA in the first fiscal quarter of 2020. Revenue from domestic K-12 schools only accounted for less than 61% of our total revenue in the first fiscal quarter of 2020. The impact is transformational as these acquisitions also served as catalysts to expand our geographic footprint, portfolio, and organization, as well as business opportunities."

   "In the 2020 fiscal year, we remain firmly focused on 3 fronts. First, capitalize on synergistic opportunities from our domestic and overseas acquired business. Second, continue our organic growth initiatives in optimizing operational efficiency, accelerating ramp up to improve utilization and broadening our service offerings. Third, continue to...