BEDU - Earnings call transcript Q1 2025 | Bright Scholar Education Holdings Limited

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Operator

Hello, ladies and gentlemen. Thank you for standing by for Bright Scholar's First Quarter of Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded. I will now turn the call over to your host from Piacente Financial Communications, Andrea Guo, IR Counsel for the company. Please go ahead, Andrea.

Andrea Guo

to of earnings fiscal welcome the call and quarter first XXXX. everyone, Bright conference Scholar's for Hello, The company's IR financial today website and and ir.brightscholar.com. operational results available at by were online visiting the section our are of released earlier

forward-looking Please the made U.S. Securities state will of Act the under Litigation of statements Reform note provisions XXXX. discussion that Private today's contain harbor

Forward-looking statements involve inherent risks and uncertainties.

company's may view. today's materially from As differ results such, the

risks filings and prospectus the filed uncertainties except included any law. For and applicable information SEC. company's public these forward-looking under in not obligation U.S. and the other other does assume as regarding with the statements, company to required is The as any update

on Bright of that this in measures. strategic Bright quarter. provide call and Executive Niu, Mr. of are note Robert include Scholar's GBP. numbers and all earnings on call the overview Participants Chief Please release also discussions our measures. GAAP earnings from a will contains unaudited the Officer, release Additionally, with press highlights Scholar's company non-GAAP update reconciliation and will conference unaudited, include who financial today's a press initiatives non-GAAP our

Our Chief provide results on then the Zhang, Financial Cindy financial company's Ms. period. will for the details Officer,

call the We will questions. then open for

to I sir. Niu. Executive Please will Bright go call now turn Officer, the over ahead, Chief Scholar's Mr. Robert

Ruolei Niu

and everyone, call. thank Hello, you for today's joining on us

achieved fiscal results amid quarterly environment first Bright an solid the quarter. We Scholar are that to pleased external in announce evolving

expansion by initiatives executing last recruitment our mentioned our are As we students. business prospective growth advancing quarter, we and international for propelling dual-engine consistently overseas school our strategy global

international including States, existing China and product available Vietnam, our Canada, Taiwan. offering platform in Pakistan expanded and our this United successfully on we quarter, This the and made markets; more service

operating pursuant and study our developed also local progress We and services in our year-over-year. Furthermore, regions these have drove teams, expenses to SG&A in decreases abroad. we provide optimizing consulting efficiency great significant local agents made to customers in local

shareholders ecosystems, and accelerate network and term. our value revenue of growth sustainable Leveraging we the schools create our and can believe global established over customers long we both for

please we Before strategic reporting quarter, this on, to reorganized I business move and note our starting segment reflect our focus. structure that have

Cindy will is to school I our known give simply But out financial want overseas point before previous Schools full business business. overview. that our a now you breakdown segment as

Now I'd like operational segment's enhanced for detail. well efficiency our performance to in more discuss quarter the the as as

our Schools our The business revenue total for source remained quarter, of around this primary accounting XX% revenue.

changing approach the ensuring has some and enrollment to respond VAT the our U.K. This various with includes recruitment we leveraging capabilities the to policy student initiatives. impacted market to our adjusted involvement in channels degree, driving enhancing enrollment new recruitment conditions. strategic While have active collaboration team, management's of

in we are our will position with Schools in Overall, confident business our that during recruitment pleased efforts support services competitive We market and forward. we first fortify advancements are going fiscal student quarter. our augmented intensified the made the have

success a We committed teaching students' atmosphere. are our promoting high-quality to and resources educational to collaborative deeply providing enhancing learning

academics. in in our consistently student especially aspects students a result, excelled of As life, have various

Group one During as universities of top XX XX by prestigious the education's from systems. offers our World ranked of Global receive CATS QS students world's the XXX offers Russell universities. quarter, University our from receive ranking students leading higher Rankings, Schools CGS Furthermore, of

optimized we during of first fiscal logistics and goal our achieve To the operations. leaner our streamlined more management internal to processes, operational and Moving efficient operations, quarter.

administrative cost efficiency a advance services, canteen improved pilot through by educational the cleaning freeing quality, our resources operational optimized excellence. This cutting example, expenses. structure up we outsourcing recent to For and and school's

solutions. vendors, and satisfaction technical leveraging customer logistics, expertise by We also boosted service efficiency and our

These initiatives and outcomes mechanism regular and pleasant students management, convenient cycle virtuous living and elevate a also educational school's offers that ongoing to implement drive a will and environment. will logistics. the foster both more We evaluations ultimately faculty feedback learning overall improvements, optimizing and

technologies competitive and integrating we will towards shift streamline that in focus processes increasingly landscape. an our drive move growth innovation, forward, As advanced and ensuring resilience sustained

our resilience performance of continued and reflects first in business the face quarter improvement fiscal summary, steady market. our a In dynamic

priority our Schools expanding more recruitment on global dual-engine abroad. planning to and business Our boosting remains strategy, serve advancing growth study students, to our

as Our streamlining and markets. towards American persist we next continuing our to long-term vision [indiscernible], and our enhancing is goal adapt Malaysia will global the tapping explore while evolving for operations global to in we North recruitment initiative Meanwhile, Thailand, and to efficiencies environment. work

our share Looking education growth opportunities ahead, as market can position a our extensive we are leading confident seize the and to global provider. market's we strengthen service

turn will will results. CFO, call financial to discuss Cindy. Please our I Cindy that, over who key ahead, go Ms. our With the Zhang,

Zhang Hui

Robert. you, Thank

to financial of for Now quarter results discuss I'd the like our XXXX. fiscal first

First, changes let me our the to review reporting. segment

overseas refer better As to structure quarter, Robert following schools, mentioned, have this Accordingly, our segment. starting we study others. business our and the previously to overseas consulting we reflect school business Schools segments: are focus. now reporting reorganized our strategic

overseas The overseas Education is consulting segment. previous of our Services business Complementary study consulting study the portion

segment kindergartens other consulting. study services, and operation Finally, KXX includes overseas services previous domestic excluding our education our and complementary

all quarter, align presentation unless otherwise In amounts to are addition, changed GBP we currency our from better with our this activities. Please stated. in business to RMB note, GBP

to first pleased quarter kick XXXX off solid are results. with fiscal We

by XX% Our streamline SG&A and optimize our significantly year-over-year, driven structure expenses to efforts cost ongoing by operations. decreased

Furthermore, multiple benefiting overseas reorganized from study revenue. achieved the our metrics, year-over-year across including consulting business increase business structure,

to initiated repurchase a share we enhance addition, value. In commitment plan shareholder our underscoring have

Looking financial results fiscal for details. more the at our quarter first in

same were million overseas compared respectively. increased by By consolidated segment, revenue X.X from GBP Schools and to our others revenue XX.X for GBP X.X X.X% year. million. to GBP XX.X Our revenue and study million continuing operations fiscal GBP million the quarter last XX.X was million, GBP

last from to was million fiscal XX.X year. million was GBP fiscal the from quarter for operations from last Gross same fiscal million XX.X% Gross same to gross quarter compared to for for compared profit last the quarter XX profit XX.X% XX operations margin the XX.X continuing continuing GBP GBP GBP same year. was year. Adjusted million operations compared continuing

million. year-over-year to continuing year. from same decrease expenses GBP compared business. decreased last quarter EBITDA million mainly to the the Schools fiscal X.X SG&A in The was X.X X.X efficiency improvement operations by for due million operational GBP GBP our Adjusted was in to XX%

Now GBP same year. turning net the GBP a compared profitability. was We year. to recorded GBP same net Adjusted continuing GBP last of from quarter million million to income the last compared fiscal million for income operations X.X to X.X million for fiscal X X quarter

Moving to our balance sheet.

as XXXX. GBP and and of As we August equivalents cash restricted million XX.X GBP of of XX, XX, million November cash XX.X had cash compared XXXX, to

previous up my briefly approved USD Board of you plan I a business to next to growth We foundation, like remarks, company deliver conduct ADS the XX to months, and believe the in that I a that strategies, operations would the environment, repurchase company's with testament Before outlook. the compelling our over financial our million company's our may shareholder repurchase strong share update coupled which value. X.X external the of to under confidence Directors opportunity a presents

to dual positioned business. our are profitability creating value. continue balance strive on and potential, expanding healthy Looking the to ahead, capitalize to enhance while will delivering to we shareholder our students our execute operations sustainable well maintaining sheet engine growing By our and market our high-return constantly optimize high-growth, exceptional and strategy, education tremendous growth we

Okay.

This concludes our all today. remarks prepared

please questions. the will call We to open ahead. now Operator, go

Operator

now Management. will Nguyen question the Instructions] begin Fund [Operator We question-and-answer Hieu first comes with The session. from XSTAR

Hieu Nguyen

Can . you share the in overseas average the last schools the quarter? for enrollment XXXX or

Ruolei Niu

question. Robert speaking. your you for Thank is This

intake are you number, enrollment for September existing for referring if the For Or this intake? students our for or January quarter? it is current

Hieu Nguyen

the like year, upcoming Right, yes. school

Ruolei Niu

Okay. new the not moment. student has sure September intake I total Cindy enrollment the am have for and I the January. at if

got And XXXX, for September have -- XXXX, X,XXX for January students have September. XXX we new new So we students. for

number, total So have give total. I close it's to will enrollment. very in be exact our to -- X,XXX but going that don't so the

Operator

[Operator Instructions] Nguyen question Tan comes The next Max with Capital. from

Tan Nguyen

on Sorry, was I Yes. mute.

understand in million cash quarter the saw So GBP net million. and cash last from because in activities cash the was X.X the in help GBP me could X.X generated was management, then operating used I movement investing that net you

can there? So what understand help in you went me

share. then already low. liquidity quite is buy question And decision observation second the back the the is is stock to in regarding My

So how paying buying and share? dividends about do between think back you

Zhang Hui

it's For Cindy question. like would question, Zhang. I ask the first answer the to your to question

cash cash movement about and last this between quarter, equivalents the Your and question the quarter is right?

Tan Nguyen

activities Specifically cash in in generated used and from the cash operating activities. investing

Zhang Hui

Okay.

For -- questions can I X these aspects. general, in into present

we deduct activities GBP -- operating for that cash is generated received is a -- was it it our decrease. for is million results X.X around and for operating loss, activities, it begin. spend for for we or from the we the gain And GBP our exchange operating First for investing GBP in terms the financing and cost the we our investing tuition and in activities, -- million, -- fee million mainly cash activities. is X.X X.X X.X attributable our advance accommodation GBP And in to generate million. before and operation And cash for activities, the that

invite for in cash recruitments And to dividends. we the Robert answer I it's So our especially repurchase cash decrease our in about new question, advance and that a for for recruitment received August. we then we expenses, And and in costs questions. second commissions the to spend results like activities. back the mainly generate -- for operational the would the all to in money -- the

Ruolei Niu

question. Yes. for the Thank you

make -- So over Board share the the dividends a to meetings. decision question been buybacks presented and a few to Board a has always past

based have performance. CapEx our number to reserves So cash operational the we share And decision on, also we enough financial schools. was and that in buybacks at for support looking related was number is made two think our one, the requirements

been we on net the think year year, profit just that Last breakeven level. the has I it first have

a we financial for until sizable this profit year. year year, up haven't really this So accumulated and last distributable

considering is reach profit level, what will dividend share So we over once buybacks. we we be a think normalized

moment. have of in the the in we observed the terms low And liquidity, is market at yes, liquidity the very

probably is, of because, However, the price number very the the far company. market one is we think it from intrinsic value is

in And there's meaningful in two number to is is at moment trading. So to very for any -- trade. shareholders the -- the our group too the shareholders' cap interest market little small

confidence to that market and buyback, and provide the sorry, that the to liquidity the in management share of will I company towards -- we the so the think the decision, improve. encourage has will the coming quarters I try intrinsic value the this through moves share in public the into the share that operations confidence think think the So the will more it years, market company, investors once in growth come value future with we --

all take stocks. any for to And also I and shareholders that think that's buy shareholders a opportunities positive current outcome for these

buying and the trading think selling and I start the and So is people a liquidity reason for increase market. for will the this stocks, to that

Tan Nguyen

Robert, up could to I regard follow with first answer? your

Ruolei Niu

Yes, please.

Tan Nguyen

so enough you the in sorry, it -- cash enough said was equity? company, do retained asset, that So distributable you profitable because mean there's earnings not before, distributable there not not was

Ruolei Niu

earnings think, was I I think the sheet. But accumulated over long has company balance time. earnings, retained in carried a that the like

what the a company has the was, I meant years the has what only into a the year, -- -- pandemic, And around So few profitability. was been the turned meant in situation. I think during for the loss-making last over financial company last I

accumulate distributable with earnings So to we again. start

distribute more earnings will to finished. the from way or comfortable And to more returning this stable grow has the years in I consistent back. profits without we then a earnings the was after manner, meant be the exercise earnings we'll looking distribute having be turnaround What at and if

Tan Nguyen

return So but right the pay is would from to prefer now, earnings year positive, current earnings. you accumulated

more of dividend year be for to wait pay other So to shareholder out to return you do you current kind sustainable activity? want want earnings before or

Ruolei Niu

sustainable right. wanted to Yes, dividend if want the -- we be we and consistent. policy, that's promote We be to

Tan Nguyen

You -- get question are investors last if asking? I one there -- line can back might or other the if in have

Ruolei Niu

May Okay. other I question ask do we any in queue? the have

can please. you think go I ahead,

Tan Nguyen

Yes.

you have in of in have you There trying the been to company. have the reposition that the that that changes changes So currencies. segments. different categorize see way I sort I there reporting been been noticed

So you're Scholar want how Bright to known kind maybe from from or Which vision you other if the are sort give Bright X what position vision give X, of years you Scholar me focus? years the What of could or targeting? now? What company will to where like now? how a you market to company, -- us do your group of student That XX stakeholders want be thing. --

Ruolei Niu

think hard dual earnings have have Yes, very strategy think call, forward. a that engine strategy I very serious. going that's this And call and very, we thinking question. And really about internally, our it I previous a a we new good emphasized we we in been --

the business, but So business, international engine one mean the Schools our growth school in will of I international be markets.

the British main pound At in revenue why changed the market, moment, to the the we U.K., and for biggest that's we is currency have us, our because exactly source. school that's the reporting

We of the group U.K. just just as beyond will foundation, and opportunities like lot explore use U.K. a education other KXX a expanding

interested in South already have are like Middle and like U.S., interested we America, markets we the are in where we Asia. markets one also So school, East, developing

at grow area. this in to opportunities presence We are our actively looking

global school Scholar, still group. the So time, I and years' would X business much international will -- a or in business will the we be X say to Bright for X education be main more

as world recruitment. growth is in the to international X And think So time. the X more engine other we'll around -- years' student I for schools have engine

in our -- recruitment market. has China send intensive students a we from have have think know-how we overseas. capital human years, for platform used the business, them to over that accumulated Scholar the I Bright and China in historically, So record big And

America. duplicate can students. our like countries growing markets parts South developing other world, of the And the we think international for India, Pakistan Asia, Southeast to the especially are like these I services and

students I U.K., other to U.S. -- overseas cetera. markets help like think et Australia in and our in these can in Canada, know-how definitely countries the study

student network think in recruitment a So I of have years' time, much X platform. we'll international broader

a education schools, KXX educational provider providing drive student recruitment. the become only service -- we services, try That education. be So owning to overall, also will means be we international for major will will Scholar Bright not international but

very of market. biggest I global international a the a in think in a foundation at student group the very good we And have and terms in the that moment, position, grow to are good U.K. we recruitment we are into

are the that currently is So strategy pursuing. we

Operator

to [Operator to conference Instructions] any question-and-answer concludes closing This turn over our the would for remarks. session. like company back I the

Andrea Guo

Thank joining once for again you today. us

Relations If feel Investor to free information you have through questions, further website. the Scholar's our on contact please Bright contact provided

Operator

This concludes conference call. the

may now You you. lines. Thank your disconnect

Bright Scholar Education Holdings Limited (BEDU) 24 Jan 252025 Q1 Earnings call transcript