Nord Anglia Education Reports Third Quarter FY2015 Financial Results

Jul 14, 2015, 06:00 ET from Nord Anglia Education, Inc.

HONG KONG, July 14, 2015 /PRNewswire/ -- Nord Anglia Education, Inc. (NYSE: NORD), the world's leading premium schools organization, today announced financial results for the third quarter of fiscal 2015, the three month period ended May 31, 2015.

Third quarter FY2015 highlights (compared to third quarter FY2014):

  • Average full time equivalent students (FTEs) increased 35.6% from 17,653 to 23,932
  • Revenue increased 22.7% (27.8% on a constant currency basis) from $138.5 million to $170.0 million
  • Revenue from premium schools increased 25.4% (30.3% on a constant currency basis) from $133.7 million to $167.6 million
  • Adjusted EBITDA increased 11.7% (14.0% o n a constant currency basis) from $44.8 million to $50.1 million
  • Adjusted Net Income increased from $14.5 million to $23.6 million
  • Adjusted EPS increased from $0.16 to $0.24

Nine months ended May 31, 2015 highlights (compared to nine months ended May 31, 2014):

  • Average full time equivalent students (FTEs) increased 28.3% from 17,220 to 22,10
  • Revenue increased 19.0% (23.3% on a constant currency basis) from $410.5 million to $488.3 million
  • Revenue from premium schools increased 20.7% (25.0% on a constant currency basis) from $397.0 million to $479.1 million
  • Adjusted EBITDA increased 12.5% (14.9% on a constant currency basis) from $126.1 million to $141.9 million
  • Adjusted Net Income increased from $37.9 million to $69.5 million
  • Adjusted EPS increased from $0.47 to $0.71

"Nord Anglia Education is pleased to report continued strong operating and financial results for the third quarter of fiscal 2015," said Andrew Fitzmaurice, CEO, Nord Anglia Education.

"In June we completed the acquisition of six schools from Meritas, which expanded our network to 41 schools educating over 32,000 students worldwide. As we continue to grow, we are committed to creating unique opportunities to benefit our students, staff and all stakeholders. Most recently, our inaugural Global Orchestra brought together students from our schools around the world for a summer school and concert in New York City. We believe that these valuable experiences help to contribute to the success of our schools, as evidenced by our recent parent survey which indicated that 92% of Nord Anglia Education parents would recommend our schools to friends and family," Fitzmaurice continued. "We are now looking forward to the start of the academic year for 2015/2016."

Third quarter FY2015 results

Our average FTEs in the three months ended May 31, 2015 were 23,932, a 35.6% increase over the average FTEs in the three months ended May 31, 2014 of 17,653.  Average capacity and utilization were 34,539 seats and 69%, respectively, in the third quarter of fiscal 2015 compared to 22,237 seats and 79%, respectively, in the same period of 2014.

Revenue increased by $31.5 million to $170.0 million in the third quarter of fiscal 2015 from $138.5 million in the same period of fiscal 2014.  This increase was due to growth in FTEs and tuition fee increases at our schools, the opening of new greenfield schools in Hong Kong and Dubai and the impact of our acquisitions in Singapore, Cambodia and Vietnam.

Our gross profit margin decreased to 40.2% in the third quarter of fiscal 2015 from 43.0% in the same period of fiscal 2014, largely due to the impact of stronger growth in the lower margin ME/SEA region and the adverse impact of the loss-making schools opened in Dubai and Aubonne, Switzerland, partly offset by price increases in excess of our cost inflation.

Adjusted EBITDA increased by $5.3 million to $50.1 million (29.4% Adjusted EBITDA margin) in the third quarter of fiscal 2015 from $44.8 million (32.3% Adjusted EBITDA margin) in the same period in fiscal 2014 due to growth in FTEs, tuition fee increases and the impact of the Singapore, Cambodia and Vietnam acquisitions. The increase was less than the revenue increase primarily due to the adverse impact of the loss-making greenfield schools opened in Dubai and Aubonne, Switzerland in September 2014.

Adjusted net income increased to $23.6 million in the third quarter of fiscal 2015 from $14.5 million in the third quarter of fiscal 2014 due to the increase in Adjusted EBITDA plus the $4.4 million reduction in our interest charge.

Balance Sheet and Cash Flow

During the nine months ended May 31, 2015, net cash used in operating activities was $25.1 million compared to $74.7 million for the same period in fiscal 2014, primarily due to a reduction in interest paid of $46.8 million. Cash used in investing activities increased from $40.2 million for the nine months ended May 31, 2014 to $139.5 million for the same period in fiscal 2015.  In the nine months ended May 31, 2015, we invested $108.9 million (net of cash acquired) to acquire BIS Vietnam and $32.1 million in capital expenditure, including refurbishment expenditure on our new school in Hong Kong and the fit-out costs of our new schools in Dubai and Aubonne, Switzerland, which opened in September 2014. Net cash from financing activities was $152.9 million in the nine months ended May 31, 2015 compared to $81.0 million in the same period in 2014. The inflow for the nine months ended May 31, 2015 included incremental borrowings under our secured credit facilities of $150.0 million.  Cash and cash equivalents as of May 31, 2015 were $142.6 million, compared to $138.2 million as of May 31, 2014.

Meritas Acquisition

On June 25, 2015, we completed the acquisition of six schools from Meritas LLC and certain affiliates, comprising three schools in the U.S., one school in Mexico, one school in Switzerland and one school in China, for a net cash consideration of $534 million. In addition, $25 million of deferred consideration is expected to be paid in October 2015.

We funded the Meritas acquisition through a combination of net proceeds from the following sources:

  • on June 16, 2015, we completed a public offering of 5,260,000 ordinary shares at $24 per share;
  • on June 25, 2015, we incurred incremental loans of $240 million under our senior secured credit facilities; and
  • on June 25, 2015, we issued CHF200 million in aggregate principal amount of 5.750% senior secured notes due 2022.

Fiscal 2015 Outlook

Nord Anglia Education is updating its full year fiscal 2015 outlook for Revenue, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS to reflect the Meritas acquisition and related financings as set out in the table below:

Prior FY15

Guidance

Updated FY15

Guidance

Revenue

$555 - $565 million

$565 - $570 million

Adjusted EBITDA

$146 - $148 million

$138 - $140 million

Adjusted Net Income

$61 - $63 million

$46 - $48 million

Adjusted Diluted EPS

$0.62- $0.64

$0.46 - $0.48

We expect diluted weighted average shares of approximately 99.3 million.

The Meritas acquisition closed on June 25, at the end of the academic year, and we will consolidate the results of Meritas from that date.  We recognise tuition revenue and direct costs from our schools over the ten months of the academic year, which means that in fiscal 2015 we will recognise limited tuition revenue from Meritas but all the SG&A expense for the six Meritas schools and their current head office costs as well as the additional depreciation and tax expense and the finance expense associated with funding the acquisition in fiscal 2015.  Given the timing of the acquisition, there is a significant negative impact in fiscal 2015 to both Adjusted EBITDA and Adjusted EPS.  We expect this acquisition to be accretive to earnings in FY16.

Conference Call and Webcast Details

Nord Anglia Education will host an investor conference call today at 8:00 am ET.  Interested parties are invited to listen to the conference call by dialling in using the following numbers:

United States Toll Free: 877.407.0784  International: 201.689.8560                                     

An audio replay of the conference call will be available through July 21, 2015 by dialling the following:

United States Toll Free: 877.870.5176  International: 858.384.5517  Replay Conference ID: 13611763

A live webcast of the conference call will be available via the investor relations section of nordangliaeducation.com and will be archived on the website.

Forward-Looking Statements

This press release includes statements that express our current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, "forward looking statements".  These forward looking statements can generally be identified by the use of forward-looking terminology, including the terms "believe," "expect," "may," "will," "should," "seek," "project," "approximately," "intend," "plan," "estimate" or "anticipate," or, in each case, their negatives or other variations or comparable terminology.  These forward-looking statements include all matters that are not historical facts.  They appear in a number of places throughout this press release and include statements regarding our intentions, beliefs or current expectations concerning among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate.

By their nature, forward-looking statements relate to events that involve risks and uncertainties or that depend on circumstances that may or may not occur in the future.  We believe that these risks and uncertainties include, but are not limited to, those under "Risk Factors" in our most recent Annual Report on Form 20-F filed with the SEC.

Although we base these forward-looking statements on assumptions that we believe are reasonable when made, we caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this press release.  In addition, even if our results of operations, financial condition, liquidity, prospects, growth strategies and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.  Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements.  Any forward-looking statement that we make in this press release speaks only as of the date of such statement, and we undertake no obligation to update any forward-looking statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments.

Non-GAAP Supplemental Financial Measures

We use EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings per Ordinary Share, Adjusted Cost of Sales and Adjusted Gross Profit as supplemental financial measures of our operating performance. We define EBITDA as (loss)/profit for the period plus income tax expense, net financing (expense)/income, exceptional items, impairment of goodwill, amortization and depreciation, and we define Adjusted EBITDA as EBITDA adjusted for the items set forth in the reconciliation table elsewhere in this press release. We define Adjusted Net Income as Adjusted EBITDA adjusted for the items in the reconciliation table elsewhere in this press release. We define Adjusted Earnings per Ordinary share as Adjusted Net Income divided by the weighted average ordinary shares outstanding for the period.  We define Adjusted Cost of Sales as cost of sales excluding Premium School land and building operating lease costs and depreciation charges arising from tangible assets owned by Premium Schools, and we define Adjusted Gross Profit as revenue less Adjusted Cost of Sales.  EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings per Ordinary Share, Adjusted Cost of Sales and Adjusted Gross Profit are not standard measures under IFRS. These measures should not be considered in isolation or construed as alternatives to cash flows, net income, earnings per ordinary share or any other measure of financial performance or as indicators of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities. We may incur expenses similar to the adjustments in this presentation in the future and certain of these items could be recurring. EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings per Ordinary Share, Adjusted Cost of Sales and Adjusted Gross Profit presented herein may not be comparable to similarly titled measures presented by other companies.  Nord Anglia Education is not able to provide a reconciliation of projected non-GAAP financial measures to expected reported results due to the uncertainty of the reported line items referred to above.  

About Nord Anglia Education, Inc.

Nord Anglia Education (NYSE: NORD) is the world's leading premium schools organisation. Our 41 international schools are located in China, Europe, the Middle East and Southeast Asia and North America. Together, they educate more than 32,000 students from kindergarten through to the end of secondary education.  We are driven by one unifying philosophy – we are ambitious of our students, our people and our family of schools. Our schools deliver a high quality education through a personalized approach enhanced with unique global opportunities to enable every student to succeed. We primarily operate in geographic markets with high foreign direct investment, large expatriate populations and rising disposable income. We believe that these factors contribute to high demand for premium schools and strong growth in our business.  Nord Anglia Education is headquartered in Hong Kong SAR, China. Our website is www.nordangliaeducation.com.

For further information, please contact:

Investors:

Vanessa Cardonnel  Corporate Finance and Investor Relations Director - Nord Anglia Education  Tel: +852 3951 1130  Email: vanessa.cardonnel@nordanglia.com

Kevin Doherty  Managing Director, Investor Relations - Solebury Communications Group LLC  Tel: +1 203 428 3233  Email: kdoherty@soleburyir.com

Media:

Sarah Doyle  Head of Brand - Nord Anglia Education  Tel: +852 3951 1144  Email: sarah.doyle@nordanglia.com

 

NORD ANGLIA EDUCATION, INC. CONDENSED CONSOLIDATED INCOME STATEMENT (Unaudited) (in $ millions, except share data)

Three Months Ended May 31,

Nine Months Ended May 31,

2015

2014

2015

2014

Revenue

170.0

138.5

488.3

410.5

Cost of sales

(101.7)

(79.0)

(290.4)

(237.0)

Gross profit

68.3

59.5

197.9

173.5

Selling, general and administrative expenses

(28.1)

(23.2)

(86.6)

(65.0)

Depreciation

(0.2)

(0.6)

(0.5)

(1.1)

Amortization

(4.6)

(2.4)

(11.5)

(7.3)

Exceptional expenses

(1.8)

(94.3)

(4.5)

(96.8)

Total expenses

(34.7)

(120.5)

(103.1)

(170.2)

Operating profit

33.6

(61.0)

94.8

3.3

Finance income

0.4

0.3

1.7

1.4

Finance expense

(9.4)

(13.7)

(24.0)

(47.8)

Net finance expense

(9.0)

(13.4)

(22.3)

(46.4)

Profit/(loss) before income tax

24.6

(74.4)

72.5

(43.1)

Income tax expense

(6.7)

(9.5)

(19.9)

(22.7)

Profit/(loss) for the period

17.9

(83.9)

52.6

(65.8)

Profit/(loss) attributable to:

-       Owners of the parent

17.5

(83.9)

51.9

(65.8)

-       Non-controlling interest

0.4

-

0.7

-

Profit/(loss) for the period

17.9

(83.9)

52.6

(65.8)

Earnings/(loss) per ordinary share(1) (in dollars)

Basic

0.18

(0.93)

0.53

(0.81)

Diluted

0.18

(0.93)

0.53

(0.81)

(1) Earnings/(loss) per ordinary share is calculated by dividing profit for the period attributable to owners of the parent by the weighted average ordinary shares outstanding for the period. For the three months ended May 31, 2015 the basic and diluted weighted average ordinary shares outstanding were 98.8 million and 98.9 million ordinary shares, respectively. For the three months ended May 31, 2014 the basic and diluted weighted average ordinary shares outstanding were 90.5 million and 90.7 million ordinary shares, respectively. For the nine months ended May 31, 2015 the basic and diluted weighted average ordinary shares outstanding were 98.1 million and 98.2 million ordinary shares, respectively. For the nine months ended May 31, 2014 the basic and diluted weighted average ordinary shares outstanding were 80.8 million and 81.3 million ordinary shares, respectively.

 

 

NORD ANGLIA EDUCATION, INC. CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (in $ millions)

May 31, 2015

August 31, 2014

Non-current assets

Property, plant and equipment

148.4

140.1

Intangible assets

948.8

801.5

Investments in jointly controlled entities

0.5

0.5

Trade and other receivables

34.9

9.2

Deferred tax assets

19.1

20.9

1,151.7

972.2

Current assets

Tax receivable

0.6

1.6

Trade and other receivables

51.9

94.8

Cash and cash equivalents

142.6

166.2

195.1

262.6

Total assets

1,346.8

1,234.8

Current liabilities

Other interest-bearing loans and borrowings

(29.7)

(23.2)

Trade and other payables

(252.1)

(387.7)

Provisions for other liabilities and charges

(0.3)

(0.5)

Current tax liabilities

(10.9)

(1.7)

(293.0)

(413.1)

Non-current liabilities

Other interest-bearing loans and borrowings

(640.1)

(499.2)

Other payables

(81.1)

(55.9)

Retirement benefit obligations

(27.6)

(25.8)

Provisions for other liabilities and charges

(1.2)

(1.2)

Deferred tax liabilities

(59.2)

(45.5)

(809.2)

(627.6)

Total liabilities

(1,102.2)

(1,040.7)

Net assets

244.6

194.1

Equity attributable to equity holders of the parent

Share capital

1.0

1.0

Share premium

618.0

597.1

Other reserves

12.9

10.3

Currency translation reserve

(22.5)

(1.1)

Shareholders' deficit

(365.3)

(413.2)

244.1

194.1

      Non-controlling Interest

0.5

-

Total shareholders' funds

244.6

194.1

 

 

NORD ANGLIA EDUCATION, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (in $ millions)

Three Months Ended

May 31,

Nine Months Ended

May 31,

2015

2014

2015

2014

Cash generated from operations

54.6

31.4

9.2

10.3

Interest paid

(7.6)

(33.1)

(20.1)

(66.9)

Tax paid

(5.5)

(5.0)

(14.2)

(18.1)

Net cash from/(used in) in operating activities

41.5

(6.7)

(25.1)

(74.7)

Net cash used in investing activities

(119.9)

(25.9)

(139.5)

(40.2)

Net cash from financing activities

123.6

70.2

152.9

81.0

Net increase/(decrease) in cash and cash equivalents

45.2

37.6

(11.7)

(33.9)

Cash and cash equivalents at beginning of the period

97.3

102.9

166.2

171.1

Exchange gains/(losses) on cash and cash equivalents

0.1

(2.3)

(11.9)

1.0

Cash and cash equivalents at end of the period

142.6

138.2

142.6

138.2

 

 

NORD ANGLIA EDUCATION, INC. KEY OPERATING DATA

We use the following key operating metrics to manage our schools: full-time equivalent students ("FTEs"), capacity, utilization and revenue per FTE. We monitor FTEs on a weekly basis and the other operating metrics on a monthly, quarterly and annual basis, as we believe that they are the most reliable metrics for measuring the profitability of our schools. The table below sets out our key operating data for the indicated periods:

Three Months Ended

May 31,

Nine Months Ended

May 31,

2015

2014

2015

2014

Full-time equivalent students (average for the period)(1)

China

5,300

4,859

5,222

4,828

Europe

4,654

4,532

4,619

4,512

Middle East/South East Asia

11,135

5,495

9,448

5,141

North America

2,843

2,767

2,811

2,739

Total

23,932

17,653

22,100

17,220

Capacity (average for the period)(2)

China

7,756

6,964

7,756

6,964

Europe

6,084

5,322

6,084

5,322

Middle East/South East Asia

16,939

6,191

13,405

5,858

North America

3,760

3,760

3,760

3,760

Total

34,539

22,237

31,005

21,904

Utilization (average for the period)(3)

China

68%

70%

67%

69%

Europe

76%

85%

76%

85%

Middle East/South East Asia

66%

89%

70%

88%

North America

76%

74%

75%

73%

Total

69%

79%

71%

79%

Revenue per FTE (in $ thousands)(4)

China

10.0

9.9

30.7

30.0

Europe

8.0

8.8

24.9

26.6

Middle East/South East Asia

4.9

4.6

14.8

13.8

North America

7.7

7.4

23.0

22.4

Total

7.0

7.6

21.7

23.1

(1) We calculate average FTEs for a period by dividing the total number of FTEs at each calendar month end in the period by the number of calendar months in the period.

(2) We calculate average capacity for a period as the total number of FTEs that can be accommodated in a school based on its existing classrooms at each academic calendar month divided by the number of months in such period.

(3) We calculate utilization during a period as a percentage equal to the ratio of average FTEs for the period divided by average capacity for the period.

(4) We calculate revenue per FTE by dividing our revenue from our schools for the period by the average FTEs for the period.

 

 

Supplementary Financial Data

$ millions

Three Months Ended

May 31,

% Variance

Constant

2015

2014

Reported

Currency

Revenue (segment)

Premium Schools

     China

53.2

48.0

11.0%

10.5%

     Europe

37.4

40.0

(6.6%)

7.2%

     ME/SEA

55.1

25.1

119.4%

120.8%

     North America

21.9

20.6

6.4%

6.4%

     Total Premium Schools

167.6

133.7

25.4%

30.3%

Other

2.4

4.8

(50.2%)

(46.0%)

Total Revenue

170.0

138.5

22.7%

27.8%

Adjusted EBITDA (segment)

Premium Schools

     China

25.8

24.7

4.2%

3.9%

     Europe

7.5

9.1

(17.7%)

(7.1)%

     ME/SEA

14.9

7.5

99.3%

100.2%

     North America

8.2

7.8

4.3%

4.3%

     Total Premium Schools

56.4

49.1

14.6%

17.0%

Other

0.3

1.7

(84.0%)

(82.7%)

Central and regional expenses

(6.6)

(6.0)

8.5%

11.8%

Adjusted EBITDA

50.1

44.8

11.7%

14.0%

Adjusted Net Income

23.6

14.5

62.5%

$ millions

Nine Months Ended

May 31,

% Variance

Constant

2015

2014

Reported

Currency

Revenue (segment)

Premium Schools

     China

160.3

144.7

10.8%

11.7%

     Europe

114.8

120.0

(4.3%)

6.4%

     ME/SEA

139.4

71.1

96.2%

97.2%

     North America

64.6

61.2

5.4%

5.4%

     Total Premium Schools

479.1

397.0

20.7%

25.0%

Other

9.2

13.5

(31.6%)

(28.1%)

Total Revenue

488.3

410.5

19.0%

23.3%

Adjusted EBITDA (segment)

Premium Schools

     China

77.4

71.0

9.0%

9.8%

     Europe

23.2

27.7

(16.2%)

(8.7%)

     ME/SEA

38.3

19.9

92.7%

93.1%

     North America

23.3

23.3

0.0%

0.0%

     Total Premium Schools

162.2

141.9

14.3%

16.7%

Other

1.1

2.7

(61.2%)

(60.0%)

Central and regional expenses

(21.4)

(18.5)

15.6%

17.9%

Adjusted EBITDA

141.9

126.1

12.5%

14.9%

Adjusted Net Income

69.5

37.9

83.5%

 

We use EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings per Ordinary Share, Adjusted Cost of Sales and Adjusted Gross Profit as supplemental financial measures of our operating performance. We define EBITDA as (loss)/profit for the period plus income tax expense, net financing (expense)/income, exceptional items, impairment of goodwill, amortization and depreciation, and we define Adjusted EBITDA as EBITDA adjusted for the items set forth in the table below. We define Adjusted Net Income as Adjusted EBITDA adjusted for the items in the table below.  We define Adjusted Earnings per Ordinary share as Adjusted Net Income divided by the weighted average ordinary shares outstanding for the period.  We define Adjusted Cost of Sales as cost of sales excluding Premium School land and building operating lease costs and depreciation charges arising from tangible assets owned by Premium Schools, and we define Adjusted Gross Profit as revenue less Adjusted Cost of Sales.  EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings per Ordinary Share, Adjusted Cost of Sales and Adjusted Gross Profit are not standard measures under IFRS. These measures should not be considered in isolation or construed as alternatives to cash flows, net income, earnings per ordinary share or any other measure of financial performance or as indicators of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities. We may incur expenses similar to the adjustments in this presentation in the future and certain of these items could be recurring. EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings per Ordinary Share, Adjusted Cost of Sales and Adjusted Gross Profit presented herein may not be comparable to similarly titled measures presented by other companies.  

 

NORD ANGLIA EDUCATION, INC. RECONCILIATION OF ADJUSTED COST OF SALES, ADJUSTED GROSS PROFIT, EBITDA, ADJUSTED EBITDA, ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER ORDINARY SHARE

(Unaudited)

Three Months Ended

Nine Months Ended

May 31,

May 31,

$ millions

2015

2014

2015

2014

Revenue

170.0

138.5

488.3

410.5

Cost of sales

(101.7)

(79.0)

(290.4)

(237.0)

  Rent Premium Schools

14.4

11.6

39.3

34.7

  Depreciation Premium Schools

7.7

6.3

22.2

16.5

Adjusted Cost of Sales

(79.6)

(61.1)

(228.9)

(185.8)

Adjusted Gross Profit 

90.4

77.4

259.4

224.7

Profit/(loss) for the period

17.9

(83.9)

52.6

(65.8)

Income tax expense

6.7

9.5

19.9

22.7

Net financing expense

9.0

13.4

22.3

46.4

Exceptional items(1)

1.8

94.3

4.5

96.8

Amortization

4.6

2.4

11.5

7.3

Depreciation(2)

7.9

6.9

22.7

17.6

EBITDA

47.9

42.6

133.5

125.0

Loss on disposal of property, plant and equipment

0.1

-

0.4

-

FX loss/(gain)(3)

(0.2)

2.0

4.4

(2.7)

Share based payments(4)

0.9

0.0

2.1

2.5

Management fees(5)

-

0.2

-

1.2

Julliard roll-out program(6)

0.2

-

0.2

-

China expat taxes(7)

1.1

-

1.1

-

Other

0.1

(0.0)

0.2

0.1

Adjusted EBITDA

50.1

44.8

141.9

126.1

Depreciation

(7.9)

(6.9)

(22.7)

(17.6)

Net financing expense

(9.0)

(13.4)

(22.3)

(46.4)

Income tax expense

(6.7)

(9.5)

(19.9)

(22.7)

Tax adjustments(8)

(2.5)

(0.5)

(6.8)

(1.5)

Non-controlling interest

(0.4)

-

(0.7)

-

Adjusted Net Income

23.6

14.5

69.5

37.9

Adjusted earnings per ordinary share(9) (in $)

Basic

0.24

0.16

0.71

0.47

Diluted

0.24

0.16

0.71

0.47

 

(1) Exceptional expenses primarily related to the acquisition of schools, including associated transaction and integration costs.

(2) Includes depreciation expense on our Premium Schools which is included in cost of sales.

(3) Represents foreign currency translational loss/(gain) primarily associated with our inter-company balances.

(4) Represents non-cash charges associated with equity investments in our company by members of management.

(5) Represents management fees paid to Premier Education Holdings Ltd.

(6) Represents costs associated with rolling-out the Julliard program to the pilot schools.

(7) Represents costs associated with expat taxes levied on teacher salaries relating to the period prior to the year-ended 31 August 2014.

(8) Represents the tax impact associated with the exclusion of certain costs including exceptional items and amortization in calculating Adjusted Net Income.

(9) Adjusted EPS is calculated by dividing Adjusted Net Income for the period by the weighted average ordinary shares outstanding for the period. For the three months ended May 31, 2015 the basic and diluted weighted average ordinary shares outstanding were 98.8 million and 98.9 million ordinary shares, respectively. For the three months ended May 31, 2014 the basic and diluted weighted average ordinary shares outstanding were 90.5 million and 90.7 million ordinary shares. For the nine months ended May 31, 2015 the basic and diluted weighted average ordinary shares outstanding were 98.1 million and 98.2 million ordinary shares, respectively. For the nine months ended May 31, 2014 the basic and diluted weighted average ordinary shares outstanding were 80.8 million and 81.3 million ordinary shares, respectively.

 

 

 

SOURCE Nord Anglia Education, Inc.



RELATED LINKS

http://www.nordangliaeducation.com