Four Seasons Education (Cayman) Inc. (NYSE:FEDU) Q3 2020 Earnings Conference Call - Preliminary Transcript

Jan 16, 2020 • 08:00 am ET

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Four Seasons Education (Cayman) Inc. (NYSE:FEDU) Q3 2020 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Hello, ladies and gentlemen. Thank you for standing by for the Four Seasons Education's Third Quarter Fiscal Year 2020 Earnings Conference Call. [Operator Instructions]

I will now turn the call over to your host, Miss. Olivia Li

Investor Relations Manager for the Company. Please go ahead, Olivia.

Executive
Olivia Li

Hello, everyone, and welcome to the third quarter fiscal year 2020 earnings conference call of Four Seasons Education. The Company's results were issued via Newswire services earlier today and are posted online. You can download the earnings press release and sign up for the Company's email distribution list by visiting the IR section of our website at ir.sijiedu.com.

Ms. Joanne Zuo, our Director and Chief Executive Officer will start the call by providing an overview of the Company performance highlights for the quarter. Ms. Xun Wang, the Company's Vice President of Finance will provide details on the Company's financial results and business outlook before opening the call for your question.

Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the Company's prospectus, as filed with the US Securities and Exchange Commission.

The Company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that Four Seasons Education's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Four Seasons Education's press release contains our reconciliation of the unaudited non-GAAP measures to the unaudited and most directly comparable GAAP measures.

I will now turn the call over to our CEO, Ms. Zuo. Please go ahead.

Executive
Joanne Zuo

Thank you, Olivia, and hello everyone. We achieved another quarter of steady performance with revenue of RMB103.5 million, representing year-over-year growth of 13.5% and adjusted net profit of RMB14.5 million. The stable financial performance was attributable to our relentless effort on growing the core business geared by the continuous ramp up of our learning centers.

During this quarter, we also maintained our momentum in diversifying costs offerings to better address the different academic demands of students across the entire K-12 age groups. Our development plan for the learning center networks remained on track.

In the third fiscal quarter, we opened two new learning centers in Jiangsu Province. As a result, the total number of learning centers increased to 55 in the third quarter compared to the preceding quarter. Going forward, we will concentrate our network building efforts on economically dynamic market.

In the meantime, we continue to prudently optimize our learning center network on an ongoing basis, as we explore better locations on a more favorable rental terms. The steady ramp up of our learning center and continuous optimization of our network, will eventually fuel our