Bright Scholar Education Holdings Limited (NYSE:BEDU) Q4 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 08:00 am ET

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Bright Scholar Education Holdings Limited (NYSE:BEDU) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Junli He

is joining our call today to review 2019 fourth fiscal quarter and full fiscal year results. You may notice that we have refined the design of our earnings presentation with subsidization across all sections, including the company overview. This is the time to take a look. Again for those who are new to our company, we have included a corporate introduction from Slide 5 to Slide 13 which you can download from our IR website.

I will start today's call with an update on our recent acquisitions, then turn the call to Dori, to provide an annual review of our business and operational performance, and share with you our strategic initiative, integration and the optimization synergy from our fast expanding portfolio of business. I will then pass the call to Dora for a detailed financial review before we take your questions.

Let's turn to Slide 15. Fiscal 2019 marks a transformational year as we heightened M&A activity to scale up our global business, expand our global footprint and to broaden our service offerings. We're successfully expanding our global school networks through organic and acquisitive growth. In particular, the acquisition of Bournemouth Collegiate School, St. Michael's School, Bosworth Independent College and CATS College which firmly established our positions outside of China.

I'm pleased to report that we have completed these transactions by September 2019, and of November 7, 2019 we own seven schools in the UK and one boarding schools in the United States, with a total of more than 2,500 students enrolled. The expansion into UK and the U.S. markets represented nearly a first step in our long-term goal of growing our footprint beyond China and capitalizing on global growth opportunities. As of this release date, we have a global network of 88 schools with a total student capacity of over 67,000 students.

As I mentioned in our fiscal third quarter earnings call, the financial impact of these transactions is significant. As we expand our revenue streams and a structural change in our revenue mix, the impact will be fully reflected in the revenue growth for fiscal 2020, and I will leave it to Dora to provide you with more details later.

As a company with commitment to delivering academic excellence, we take a great pride in our reputation as a trusted provider of premium education services. The strategic investment over the last two fiscal years are pivotal to accelerated pace of building Bright Scholar into a global premier education service company. And our goal is to create the best learning experience for our students and a substantial value for our stakeholders.

With this positive note, I will turn the call over to Derek. Derek, please.

Executive
Derek Feng

Thank you, Jerry. Good morning and good evening. Bright Scholar delivered the third consecutive year of robust top line growth while ahead of expectations in fiscal 2019.

Let's turn to Slide 19 for our fiscal fourth quarter and the full year results. Factoring in the contributions from CATS, the revenue for the quarter was