TAL Education Group Q2 Profit Rises, Tops Estimates - Quick Facts

(RTTNews) - TAL Education Group (XRS), China-based K-12 after-school tutoring services provider, reported that net income attributable to the company for the second quarter of fiscal year 2014 increased 45.4% to $23.3 million, from $16.0 million in the second quarter of fiscal year 2013. Net income per ADS was $0.29, up from $0.21 last year.

Non-GAAP net income attributable to the company increased by 38.7% to $25.1 million, from $18.1 million in the second quarter of fiscal year 2013. Non-GAAP net income per ADS were $0.31, up from $0.23 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share for the quarter. Analysts' estimates typically exclude special items.

Capital expenditures for the second quarter of fiscal year 2014 were $3.3 million, representing an increase of $1.6 million from $1.7 million in the second quarter of fiscal year 2013. The increase was mainly from the purchase of equipment, including servers, computers, and other hardware used in our teaching facilities, to better support the Company's operation.

Net revenues for the quarter were $92.0 million, representing a 35.1% increase from $68.1 million last year. Analysts expected the company to report revenues of $90.25 million for the quarter. The increase was mainly driven by an increased number of total student enrollments combined with increased average selling prices or ASPs. Total student enrollments increased by 24.8% to approximately 308,490 from approximately 247,100 in the same period one year ago.

The increase in total student enrollments was driven primarily by increases of enrollments in the small class offerings. ASP increased by 8.2% from $275 in the second quarter of fiscal year 2013 to $298 in the same quarter of fiscal year 2014. The growth in ASP was mainly driven by the hourly rate increases of a portion of the small class course offerings and the foreign exchange rate fluctuation.

Total net revenues for the third quarter of fiscal year 2014 are expected to be between $69.5 million and $71.0 million, representing an increase of 42% to 45% on a year-over-year basis. Analysts expect the company to report revenues of $61.71 million for the third-quarter.