Bright Scholar Education Holdings Limited (NYSE:BEDU) Q2 2024 Earnings Call Transcript

Cost of revenue was RMB359.8 million or 69% of revenues compared with RMB329.7 million or RMB74.1 million for the same quarter last year. The improvement was mainly attributable to cost-saving measures and efficiency enhancements at our headquarters. Our gross profit increased by 40.2% to RMB171.7 million from RMB115.4 million for the same quarter last year. The increase was mainly attributable to revenue growth in our Overseas Schools and Complementary Education Services. Gross margin increased to 31% from 25.9% for the same quarter last year. Adjusted gross profit increased by 38.3% to RMB164.3 million from RMB119.2 million for the same quarter last fiscal year. Our SG&A expenses decreased by 5.8% to RMB146.8 million from RMB155.9 million for the same quarter last year.

This decrease was mainly attributable to cost-saving measures and efficiency enhancements at our headquarters. Our adjusted EBITDA was RMB33.7 million compared with an adjusted EBITDA loss of RMB26.6 million for the same quarter last year. Net income was RMB2.9 million compared with the net loss of RMB50.8 million for the same quarter last fiscal year. Adjusted net income was RMB7.1 million compared with the adjusted net loss of RMB47.8 million for the same quarter last fiscal year. As of the end of February this year, the company has cash and cash equivalents and restricted cash of RMB496.9 million compared with RMB467.2 million as of August 31 last year. Looking ahead, we will remain focused on prudent cost management and strategic portfolio restructuring to optimize returns while [bolstering] our financial spending through margin expansion, strengthening our balance sheet and enhance our cash flow by maintaining a healthy balance between our growth momentum and cost.

We are confident we can generate long-term value for our customers and shareholders alike. Okay. This concludes all our prepared remarks today. We will now open the call to questions. Operator, please go ahead.

Operator: Thank you. We will now begin the question-and-answer session. [Operator Instructions]

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Operator: And this concludes our question-and-answer session. I would like to turn the conference back over to Ms. Andrea Gall for any closing remarks. Please go ahead.

Unidentified Company Representative: Thank you once again for joining us today. If you have further questions, feel free to contact Bright Scholar’s Investor Relations through the contact information provided on our website.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.