Q2 2025 Bright Scholar Education Holdings Ltd Earnings Call
Unknown Executive: Hello ladies and gentlemen.
Hello, Ladies and gentlemen, thank you for standing by for Bright Scholar's second quarter of fiscal year 2025 earnings Conference call. At this time all participants are in listen only mode. After management's remarks, there will be a question and answer session. Today's conference call is being recorded.
Unknown Executive: Thank you for standing by for Bright Scholar's second quarter of fiscal year 2025 earnings conference call. At this time, all participants are in listen-only mode. After management's remarks, there will be a question and answer session. Today's conference call is being recorded.
Andrea Guo: 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. Thank you very much.
Speaker Change: <unk> I will now turn the call over to your host from <unk> Financial Communications, Andrea Guo IR Counsel for the company. Please go ahead Andrea.
Speaker Change: Thank you very much Hello, everyone and welcome to Bright Scholar's earnings conference call for the second called out physical 2025 or comedies financial and operational results were released earlier today and are made up online by visiting the IR section of basketball those websites.
Andrea Guo: Hello, everyone, and welcome to Bright Scholar's earnings conference call for the second quarter of fiscal 2025. The company's financial and operational results were released earlier today and are available online by visiting the IFRS section of Bright Scholar's website at ir.brightscholar.com.
Speaker Change: Our dog's breath, Colorado Com. Please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Travelers Secretaries Education Reform Act of 1995.
Andrea Guo: Please note that today's discussion will contain forward-looking statements made under the Safe Harbor Provisions of the U.S. Private Securities Education Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may materially differ from today's view. for the information regarding this and other risks and uncertainties is included in the company's prospectus and other public filings as followed with the U.S. The company does not assume any obligation to update any forelooking statements except as required under applicable law.
Speaker Change: Forward looking statements involve inherent risks and uncertainties.
Speaker Change: As such the company's results may materially differ from todays view.
Speaker Change: Further information regarding these and other risks and uncertainties is included in the company's prospectus and other public filings as filed with the U N does do you see the company does not assume any obligation to update any forward looking statement, except as required under applicable law.
Andrea Guo: Additionally, Bright Scholar's earnings press release and its conference call included discussions on all the gaps and non-gap financial measures. Bright Scholars Earnings Press Release contains a reconciliation of on Audit Non-Gap Measures.
Speaker Change: Additionally, but color earnings press release and this conference call include a discussion of Oh did this guy and non-GAAP financial measures.
Speaker Change: <unk> earnings press release contains a reconciliation of the.
Speaker Change: Oh today to non-GAAP measures. Please also note that all numbers are in G. B P.
Andrea Guo: Please also note that all numbers are in Our participants on today's call will include Bright Scholar's Chief Executive Officer, Mr. Robert Niu, who will provide a company overview and update on strategic initiatives with highlights from the quarter.
Grasp Bullock: Take your time on today's call will include grasp Bullock Chief Executive Officer, Mr. Robert knew who will provide a company overview and update on strategic initiatives like <unk> found the call her the Companys Chief Financial Officer, Mr. Andy Zhang will then provide details on the financial results for the.
Andrea Guo: and the company's Chief Financial Officer, Ms. Cindy Zhang, will then provide details on the financial results for the period. will then open the call for questions.
Speaker Change: Here we are.
Speaker Change: Well then open the call for questions.
Ruolei Niu: I will now turn the call over to Bright Scholar's Chief Executive of Please go ahead. Hello everyone and thank you for joining us on today's call. We are pleased to report that Bright Scholar delivered solid Q2 quarterly results. demonstrating our resilience in an evolving external environment. During the quarter, we made meaningful progress executing our dual-engine growth strategy. Under this plan's dedicated initiatives, we expanded our school's business and advanced our global recruitment efforts for international students. As a result, our school's business remained consistent, with a total enrollment of 2699 students as of March 31, 2020. 2035.
Speaker Change: I will now turn the call over to Beth Garner Chief Executive Officer, Robert Neil. Please go ahead Sir.
Robert Neil: Hello, everyone and thank you for joining us on today's call.
Speaker Change: We are pleased to report that watched golar hilli, but solid.
Robert Neil: <unk> quarterly results.
Robert Neil: Trading and our resilience.
Robert Neil: External environment.
Robert Neil: We ended the quarter.
Robert Neil: Meaningful progress executing our dual engine.
Robert Neil: Strategy and let me explain this dedicated.
Robert Neil: We have all the schools business.
Robert Neil: And then when that's all global recruitment efforts.
Robert Neil: International students.
Robert Neil: As a result.
Robert Neil: Ooh business remains consistent.
Robert Neil: It's a totally enrollment holdings.
Robert Neil: Year over year 2000.
Robert Neil: And 99 students.
Robert Neil: That you've won.
Robert Neil: Plenty to be fun.
Ruolei Niu: Moreover, we also received strong 14.2% year-over-year improvement in revenue per enrollment at our U.S. schools in this fiscal quarter. Meanwhile, our global recruitment initiatives maintain strong momentum across existing markets, building a sustainable pipeline for expansion. As a leader in pre-med international education, we remain committed to delivering exceptional learning experience while enhancing operational efficiency and growing our global footprint to drive sustainable long-term value. Importantly, it makes a significant stride. in optimizing operations, achieving year-over-year reductions in SG&A expenses. which has established global network and the ecosystem. We are well positioned to accelerate revenue growth and create lasting value for both customers and shareholders over the long term.
Robert Neil: Moreover.
Robert Neil: We also see strong 14, 2% year over year improvement in revenue.
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Robert Neil: And our U S foods physical.
Robert Neil: Physical fortunate.
Robert Neil: Meanwhile, our global link with my leadership team maintained its strong momentum.
Robert Neil: We've seen market.
Robert Neil: A sustainable pipeline.
Robert Neil: That's a leader in three minutes.
Robert Neil: Jason we remain committed.
Robert Neil: She brings exceptional experience, while we had some operational efficiencies and growing our global footprint.
Robert Neil: Sustainable long term value.
Robert Neil: Importantly, we made significant strides.
Robert Neil: Optimizing operations achieving year over year reductions in SG&A expenses we.
Robert Neil: We saw we stopped Leafs global network and the ecosystem.
Robert Neil: Well positioned.
Robert Neil: I celebrate robin at both <unk> and.
Robert Neil: And create lasting value for both customers and shareholders over the long term.
Ruolei Niu: The school systems remain our primary revenue source this quarter, accounting for around 61% of our total revenue. Despite microeconomic headwinds, including the impact of VAT policies in the UK. Stable student enrollment year-over-year demonstrates the resilience of our diversified portfolio by optimizing operational efficiency and maintaining rigorous academic standards with mitigated external pressures while continuing to deliver. High-Quality Education During the quarter, our U.S. schools set new benchmarks for excellence by delivering outstanding results across both academic and extracurricular domains. On the academic front, our Cass Academy Boston students have already secured over 100 acceptance from top universities around the world.
Robert Neil: The sports business remain our primary revenue source this quarter.
Robert Neil: Looking for around 61%.
Robin: No Robin.
Robin: Despite microeconomic.
Robin: Great.
Robin: Including the impact of VIP policies in the U K.
Robin: They both student enrollments year over year demonstrates the resilience of our diversified portfolio, while optimizing ops.
Robin: Operational efficiency and maintaining rigorous academic standards, we've navigated some external pressures while continuing to deliver.
Robin: High quality education.
Robin: During the quarter, our U S schools, the new benchmark for excellence by delivering outstanding results across both academic and extra curriculum domains.
Robin: The academic world, Okay. Its economy Bulks that students have already secured overall.
Robin: Hum universities around.
Ruolei Niu: across the U.S., Canada, and the U.K., with more expected that the admission cycle continues through May 2025. This early success underscores the strength of our college prep programs beyond academic.
Robin: Across the U S, Canada and the U K.
Robin: With more expected.
Robin: Michelle cycle continues through May 2025.
Robin: This early success on the floor.
Robin: Great.
Robin: Well, it's Brad.
Robin: Academic.
Ruolei Niu: We are equally proud of our students' remarkable achievements in athletics.
Robin: We are equally proud of all our students with remarkable achievements.
Ruolei Niu: I'm also delighted to share... our own CAF Boston student athlete. Jalyn Powell was named as the Etheridge, Massachusetts Boys Basketball Player of the Year for the second consecutive year.
Robin: I'm also delighted to see.
Robin: Okay.
Robin: Absolutely.
Robin: Hello.
Speaker Change: First name is that's a wage, Massachusetts boys' basketball player of the year for the second consecutive year.
Ruolei Niu: This honour has previously been awarded to legends like LeBron James and Jason Payton. and the recognized Academic dedication and community leadership. Back-to-back wins are exceptionally rare.
Speaker Change: This one has previously been awarded to Chew on merchants like Lebron James.
Speaker Change: Jason Hey, Tim.
Speaker Change: And they recognize.
Speaker Change: Jonathan.
Speaker Change: Parallel talent.
Speaker Change: Is that the case.
Speaker Change: And the community leadership.
Speaker Change: Back to back wins are exceptionally rare.
Ruolei Niu: The main team cast Boston as a hub for nurturing future champions. Furthermore, our Cass Boston Academy has been ranked No. 5 nationally in the 2024-2025 PREP programs, ranking by neprepbasketball.net. further validating our leadership in combining elite athletes.
Speaker Change: The managing cats, Boston, it's a hub and nurturing future champions.
Speaker Change: Furthermore, our cats Boston economy.
Speaker Change: Ranked number five nationalities.
Speaker Change: In the 'twenty 'twenty four to 'twenty 'twenty five.
Speaker Change: Programs ranking by any basketball.
Speaker Change: <unk>.
Speaker Change: But validating our leadership.
Speaker Change: The elite athletes.
Speaker Change: Thanks.
Speaker Change: Programs with sports Bras education.
Ruolei Niu: Executive, Ruolei Niu, Zhang Hui, Bright Scholar Education Holdings Ltd on how we are fulfilling our mission to develop well-rounded global citizens. In the UK, our schools have delivered exceptional university placement results that solidify Bright Scholar's reputation as a premium pathway to global higher education. Across our UK boarding schools, students have received offers from 8 of the top 10 UK universities, according to QS 2025 ranking. including prestigious institutions like Cambridge, UCL and Imperial College London.
Speaker Change: Together these achievements underscore the significant progress we've made in the U S.
Speaker Change: Fitness sportswear.
Speaker Change: That's how we are fulfilling our mix as well.
Speaker Change: Well round two global citizens.
Speaker Change: In the U K our schools.
Speaker Change: So university placement results.
Speaker Change: Bye.
Speaker Change: Oh gosh, that's reputation as a premium phosphates with global higher education.
Speaker Change: Of course, our UK boarding schools students halfway C. O offers H O that's false and U K universities. According to Q1 2025. Thank you.
Speaker Change: Including prestigious institutions like temporary U S T L and Imperial College, London and.
Ruolei Niu: A significant cohort of our students has... also earned offers from top 100 global universities with applications extending across Europe, Asia and the United States. What makes these results particularly remarkable are the perfect records we have achieved at specific schools.
Speaker Change: A significant cohort of our students' lives.
Speaker Change: Also Orange office on top 100 Global University, it's applications spending across Europe, Asia, and the United States.
Speaker Change: What makes you so with our results, particularly remarkable or the plethora of record we have achieved a specific schools.
Ruolei Niu: At St. Michael's, we maintain a flawless 100% temperature acceptance rate this year, with all three interviewed students securing admission invitations. Similarly, Cambridge has now achieved 100% Russell Group University offers for its A-level students for two consecutive years. Marking an exceptional Marking an extraordinary accomplishment that puts our students in the company of the UK's academic elite. These outstanding outcomes not only demonstrate our consistent ability to prepare students for the world's most competitive universities, but also validate our position as a truly global education provider capable of opening doors to top institutions.
Speaker Change: At Michaels, we maintain a pool itself.
Speaker Change: And with just that since May of this year with all Sweetens debuted stupid.
Speaker Change: Securing that mission and the patients.
Speaker Change: Really that's 10 bridge that's knowledge.
Speaker Change: Russell Group University offers or it's a level students what's your what's the effect.
Speaker Change: Yes.
Speaker Change: Marketing.
Speaker Change: An exception, though.
Speaker Change: Marking extraordinary accomplishment.
Speaker Change: Well, it's all students in the company of the Uk's academic elites.
Speaker Change: He's all suddenly all calls not only demonstrate.
Speaker Change: So the ability to prepare students for the worlds most competitive universities.
Speaker Change: But also validates our position as a true.
Julie: Julie Global education provider capable of opening doors to top institutions.
Ruolei Niu: across continents. In addition, our global recruitment efforts gain further traction across key markets. Enhancing Our Pipeline for Future Growth Early indicators show strong demand for our programs, particularly in markets valuing Western Curricula and University Pathways. We're also leveraging our partnership with local institutions to amplify our presence, ensuring sustainable growth in new geographies.
Speaker Change: Across companies.
Speaker Change: In addition, our global recruitment assays for the detection of course key markets.
Speaker Change: Has your pipeline for future growth.
Speaker Change: Early indicators show strong demand for our old reps particulars particular, the market's valuing.
Speaker Change: Our best in curricula and University population, we also leverage our partnership with local institutions.
Speaker Change: Our preference.
Speaker Change: It's really a sustainable growth in new geographies.
Ruolei Niu: Looking ahead, Bright Scholar remains focused on executing our dual-engine growth strategy to drive excellence in our school business while expanding our global footprint in recruitment to serve more students planning to study abroad. Our strong academic results coupled with operational resilience. position us to capitalise on the growing demand for pre-made international education. We are confident in our ability to deliver stronger value, stronger long-term value to students, families, and shareholders alike.
Speaker Change: Looking ahead well that's.
Speaker Change: Well remain focused on executing our dual engine growth strategy.
Speaker Change: Excellence in our food business, while expanding our global footprint, we were fortunate to serve more students lending to study abroad.
Speaker Change: Our strong academic results.
Speaker Change: This operational resilience.
Speaker Change: To capitalize on the Walgreens demand for industrial applications.
Speaker Change: We have confidence.
Speaker Change: Our ability to give me much stronger value strong them.
Speaker Change: Long term value with.
Speaker Change: Students families and shareholders alike.
Zhang Hui: With that, I will turn the call over to our CFO, Ms. Xinzi Zhang, who will discuss our key financial results. Please go ahead, Xinzi. Thank you Robert.
Speaker Change: With that I.
Speaker Change: I will turn the pool Overdraw CFO Mrs.
Speaker Change: Thank you Joe.
Speaker Change: We will discuss all key financial results. Please.
Cindy: Please go ahead Cindy.
Cindy: Thank you <unk>.
Zhang Hui: Now I'd like to discuss our financial results for the second quarter of fiscal 2025. Please note all amounts are in GDP and as otherwise stated. We are pleased to report a strong financial performance in Q2 fiscal year 2025, marked by significant improvements in profitability and operational efficiency. While maintaining stable year-over-year revenue, we achieved a 6.2% increase in our overseas study consulting business revenue, demonstrating the resilience of our diversified model. Amidst ongoing external challenges, we successfully reinforced the resilience of our global with our school business while making sustainable operation improvements. Our focused cost optimization initiatives drove a 30.7% reduction in SG&A expenses year-over-year and improved the SG&A to revenue ratio by 1.2 percentage points.
Cindy: Now I like to discuss our financial results for the southern quarter, all physical challenges can be five please note all along.
Cindy: I don't know otherwise.
Cindy: Yeah, I'm pleased to report a strong financial performance in Q2.
Cindy: Physical yeah, Tony can be five marked by significant improvement in profitability and operational efficiency.
Cindy: Painting stable year over year wrap with you we achieved a six point cheapest bonds increased our overseas study consulting business rapidly.
Cindy: I'm not changing really.
Cindy: These bands of our diversified model, Amit, although each channel.
Cindy: Palo Verde, we successfully re enforced so really all of our global with our school business, while making sustainable operational improvements.
Our focused cost optimization initiatives shelf, a 30.7 performance reduction in SG&A expenses year over year and improved.
Cindy: Yeah, eight to revenue ratio by one two percentage points, notably although much income suite from continuing operations increased by I'll, let choose albums, Los Angeles, Yeah, Oh, Tor 200 percentage year over year.
Zhang Hui: Notably, our net income from continuing operations increased by over 200% year-over-year.
Zhang Hui: looking at our financial results for the second fiscal quarter in more detail. Our revenue from continuing operations was $43.8 million compared with $48.5 million for the same quarter last fiscal year. By segment, our overseas study consulting revenue increased by 6.2% to $11.9 million. Schools and other revenues were $26.6 million and $5.3 million respectively. Gross profit from continuing operations was $13.2 million compared to $15 million for the same quarter last fiscal year. Growth margin from continuing operations was 30% compared with 30.8% for the same quarter last fiscal year. Adjusted gross profit from continuing operations was a $13.2 million compared with $15.1 million for the same quarter last fiscal year.
Looking at our financial results for the second fiscal quarter in more detail.
Cindy: Although walking you from continuing operations was 43.8 million compared with 48 5 million for the same quarter of last fiscal year.
Cindy: Second language all the overseas Bobby consult we welcome you at least a six point shoppers bumps to 11 9 million SKU list and all the RASM is well to well $26 6 million and $5 3 million respectively.
Cindy: Well well see some continued operations for 13 two.
Cindy: <unk> 2 million compared to 15 million for the same quarter of last fiscal year.
Cindy: Margin was down from Geneva operations once the surgical sandwich compared with 30 points H for fans for the same quarter last fiscal year.
Cindy: Adjusted gross profit from continuing operations was.
Cindy: Our starting point she'll need Hum Tampa was 15 1 million for the same quarter last fiscal year.
Zhang Hui: SG&A expenses from continuing operations decreased by 13.7% year-over-year to $11.2 million. The decrease was mainly due to the improvement in operational efficiency in other school businesses. Adjusted EBITDA was $3.1 million compared with $3.6 million for the same quarter last fiscal year. Now turning to profitability, we recorded a net income of $3.2 million, increased from $0.3 million for the same quarter last fiscal year. Adjusted net income grew by 179.5% to $2.5 million, compared to $1.3 million for the same quarter last fiscal year.
Cindy: Yeah, Hey, Stanley it's far from Geneva operation increased by 13, 7% year over year to one to 11 2 million. The decrease was mainly due to the improvements in operational efficiency novel food businesses.
Cindy: Adjusted EBITDA was $3 1 million compared with $3 6 million for the same quarter of last fiscal year.
Cindy: Now turning to profitability, we recorded a net income of 3.2 million increased from one three.
Cindy: We need them for the same quarter of last fiscal year.
Cindy: Adjusted net income grew by 117 nine points.
Cindy: Thanks, So 2.5 million compared to $1 3 million for the same quarter of last fiscal year moving to the balance sheet.
Zhang Hui: Moving to our balance sheet, as of February 28, 2025, we have cash-on-cash equivalent and restricted cash of $46.3 million, compared with $54.3 million as of August, as of the end of last fiscal year. In conclusion, our second fiscal quarter performance is in line with our expectations. Our proven academic outcomes, combined with strategic expansion, reinforce our confidence in delivering sustainable long-term growth. We remain committed to empowering students worldwide and creating values for all stakeholders.
Cindy: February Chunky 28, 10 days of Newpage, we had cash and cash equivalents.
Cindy: Cash.
Cindy: 40.
Cindy: $46 3 million compared with $54 3 million as of August as of the end of last fiscal year income page I'll have a second fiscal quarter performance is in line with our latest temptation of approval.
Cindy: Nick outcomes combined with strategic expansion reinforced our confidence in delivering sustainable long term growth, we remain committed to empowering students worldwide.
Speaker Change: 18 values for all stakeholders. Okay. These countries all of our prepared remarks today, we will now open the call to questions. Operator. Please go ahead.
Unknown Executive: Okay, this concludes all our prepared remarks today.
Unknown Executive: We will now open the call to questions. Operator, please go ahead.
Unknown Executive: We will now begin the question and answer session. To ask a question, you may press star, then one, on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys.
Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad, if you're using a speakerphone. Please pick up your handset before pressing the keys if at any time. Your question has been addressed and you would like to.
Unknown Executive: If at any time your question has been addressed and you would like to withdraw your question, Press Star. Thank you. for the benefit of all participants on today's call.
Withdraw your question. Please press Star then two.
Speaker Change: For the benefit of all participants on today's call. If you wish to ask your question to management in Chinese. Please immediately repeat your question in English.
Unknown Executive: We wish to ask your question to management in Chinese.
Unknown Executive: Please immediately repeat your question in English.
Unknown Executive: At this time, we will pause momentarily to assemble our roster.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Unknown Executive: Seeing that there are no questions.
Speaker Change: Seeing that there are no questions. This concludes our question and answer session I would like to turn the conference back over to Andriy Guo for any closing remarks.
Unknown Executive: This concludes our question and answer session.
Andrea Guo: I would like to turn the conference back over to Andrea Guo for any closing remarks. Thank you once again for joining us. If you have further questions, please do not hesitate to contact me. Please feel free to contact Bright Scholar Investor Relations through the contact information provided on our website.
Speaker Change: <unk>.
Speaker Change: Thank you once again for joining yesterday, if you have further questions. Please feel free to call.
Speaker Change: Brett.
Speaker Change: So it was a contact information provided.
Speaker Change: Right.
Unknown Executive: This concludes this conference call.
Speaker Change: This concludes this conference call you May now disconnect. Your line. Thank you.
Unknown Executive: You may now disconnect your line.
Speaker Change: Yeah.
Speaker Change: [music].