TAL Education Group Announces Unaudited Financial Results for the Fourth Fiscal Quarter and Fiscal Year Ended February 28, 2013

   TAL Education Group Announces Unaudited Financial Results for the Fourth
            Fiscal Quarter and Fiscal Year Ended February 28, 2013

- Quarterly Net Revenues Increased by 14.2% Year-Over-Year

- Quarterly Income from Operations Decreased by 10.4% Year-Over-Year

- Quarterly Net Income Attributable to TAL Decreased by 9.7% Year-Over-Year

- Fiscal Year Net Income Attributable to TAL Increased by 37.5%

- Fiscal Year Net Revenues Increased by 27.3%

- Fiscal Year Income from Operations Increased by 49.4%

PR Newswire

BEIJING, April 23, 2013







BEIJING, April 23, 2013 /PRNewswire/ --TAL Education Group (NYSE: XRS) ("TAL"
or the "Company"), a leading K-12 after-school tutoring services provider in
China, today announced its unaudited financial results for the quarter ended
February 28, 2013, which is the fourth quarter of TAL's fiscal year 2013.

Highlights for the Fourth Quarter of Fiscal Year 2013

  oNet revenues increased by 14.2% year-over-year to US$59.6 million from
    US$52.2 million in the same period of the prior year.
  oIncome from operations decreased by 10.4% to US$5.7 million, from US$6.3
    million in the fourth quarter of fiscal year 2012.
  oNet income attributable to TAL decreased by 9.7% year-over-year to US$6.8
    million from US$7.6 million in the same period of the prior year.
  oNon-GAAP net income attributable to TAL, which excluded share-based
    compensation expenses, decreased by 5.0% year-over-year to US$8.6 million
    from US$9.0 million in the same period of the prior year.
  oBasic and diluted net income per American Depositary Share ("ADS")[1] were
    both US$0.09. Non-GAAP basic and diluted net income per ADS, excluding
    share-based compensation expenses, were both US$0.11.
  oTotal student enrollments increased by 9.7% year-over-year to
    approximately 250,700.
  oTotal physical network decreased by a net four learning centers to 255
    learning centers as of February 28, 2013 from 259 learning centers as of
    November 30, 2012, as the Company continued to focus on improving
    operational efficiency during the period.

[1] Each ADS represents two Class A common shares.

Highlights for the Fiscal Year Ended February 28, 2013

  oNet revenues increased by 27.3% year-over-year to US$225.9 million from
    US$177.5 million in the same period of the prior year.
  oIncome from operations increased by 49.4% to US$31.4 million, from US$21.0
    million in the same period of fiscal year 2012.
  oNet income attributable to TAL increased by 37.5% year-over-year to
    US$33.4 million from US$24.3 million in the same period of the prior year.
  oNon-GAAP net income attributable to TAL, which excluded share-based
    compensation expenses, increased by 29.5% year-over-year to US$41.7
    million from US$32.2 million in the same period of the prior year.
  oBasic and diluted net income per ADS were both US$0.43. Non-GAAP basic and
    diluted net income per ADS, in each case excluding share-based
    compensation expenses, were US$0.54 and US$0.53, respectively.
  oTotal student enrollments in fiscal year 2013 increased by 18.2%
    year-over-year to approximately 816,110.
  oTotal physical network decreased to 255 learning centers as of February
    28, 2013 from 270 learning centers as of February 29, 2012.

Financial and Operating Data -- Fourth Quarter and Twelve Months of Fiscal
Year 2013

(In US$ thousands, except per ADS data, student enrollments and percentages)

                                                   Three Months Ended
                                                   February 29/28,
                                                   2012    2013    Pct.Change
Net revenues                                       52,216  59,648  14.2%
Net income attributable to TAL                     7,582   6,848   -9.7%
Non-GAAP net income attributable to TAL            9,019   8,571   -5.0%
Operating income                                   6,321   5,663   -10.4%
Non-GAAP operating income                          7,758   7,386   -4.8%
Net income per ADS attributable to TAL – basic     0.10    0.09    -10.4%
Net income per ADS attributable to TAL – diluted   0.10    0.09    -9.9%
Non-GAAP net income per ADS attributable to TAL –  0.12    0.11    -5.7%
basic
Non-GAAP net income per ADS attributable to TAL –  0.12    0.11    -5.2%
diluted
Total student enrollments in small class,          228,500 250,700 9.7%
one-on-one, and online courses

                                                   Fiscal Year Ended
                                                   February 29/28,
                                                   2012    2013    Pct.Change
Net revenues                                       177,520 225,931 27.3%
Net income attributable to TAL                     24,314  33,440  37.5%
Non-GAAP net income attributable to TAL            32,215  41,724  29.5%
Operating income                                   21,025  31,421  49.4%
Non-GAAP operating income                          28,926  39,705  37.3%
Net income per ADS attributable to TAL – basic     0.32    0.43    36.1%
Net income per ADS attributable to TAL – diluted   0.31    0.43    36.9%
Non-GAAP net income per ADS attributable to TAL –  0.42    0.54    28.2%
basic
Non-GAAP net income per ADS attributable to TAL –  0.41    0.53    28.9%
diluted
Total student enrollments in small class,          690,300 816,110 18.2%
one-on-one, and online courses

"During the fourth quarter, the small class business in markets other than
Beijing and Shanghai once again drove our top line growth, more than doubling
revenues and enrollments versus the year ago period. These cities contributed
29% of small class revenues in the fourth quarter versus 16% in the same
period of the previous year, demonstrating the continued geographic
diversification of our business. Another highlight is that our Shanghai
business picked up again in the quarter following a period of transition in
which we managed our growth while further improving teaching quality and
curriculum.

"In the coming fiscal year, we plan to undertake new content initiatives to
enhance our core competency as a specialized, top-level tutoring services
provider in the market. We will maintain our organizational focus on the math
and science areas, with additional emphasis on the broader math and sciences
curriculum offered in middle schools and high schools. At the same time, we
plan to invest in further enhancing our LeJiaLe-branded English offering to
make it an even more attractive cross-sell to our students. Finally, we will
increase investments that bring our business closer to the cross-section of
where education meets technology. Specifically, we will promote more refined
assessment metrics at each level in our curriculum, an ever more interactive
classroom experience and greater convenience in the class registration
process," said TAL's Chairman and Chief Executive Officer, Mr. Bangxin Zhang.

Mr. Joseph Kauffman, Chief Financial Officer, continued, "I am pleased fourth
quarter revenues came in as we expected, given the unfavorable timing of the
Chinese New Year holiday this year and the ongoing impact from the policy
change in Beijing."

"On the whole, I am satisfied with the operating leverage we have achieved for
this harvest year, especially in light of the unexpected disruption to our
Beijing business beginning in the third quarter, which affected both our small
class and 1-on-1 businesses in that city. For the full fiscal year 2013, total
revenues surpassed the US$200 million mark, increasing by over 27%. We
delivered operating income growth of 49.4% year-over-year and operating margin
was 13.9%, up by 210 basis points versus fiscal year 2012. Our balance sheet
remains strong at over US$200 million in cash, cash equivalents, and term
deposits, even after returning to shareholders through share buyback and a
special dividend a combined over US$40 million last year. With this solid
foundation, and ongoing positive growth momentum in cities outside of Beijing,
we are ready to re-enter the investment stage in our business in fiscal 2014,"
Mr. Kauffman added.

Financial Results for the Fourth Quarter of Fiscal Year 2013

Net Revenues

For the fourth quarter of fiscal year 2013, TAL reported net revenues of
US$59.6 million, representing a 14.2% increase from US$52.2 million in the
fourth quarter of fiscal year 2012. The increase was mainly driven by an
increased number of total student enrollments combined with higher average
selling prices (ASPs). Total student enrollments increased by 9.7% to
approximately 250,700 from approximately 228,500 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 4.1%
from US$229 in the fourth quarter of fiscal year 2012 to US$238 in the same
quarter of fiscal year 2013. The growth in ASP was mainly driven by the hourly
rate increases of a portion of center-based course offerings and the foreign
exchange rate fluctuation.

Operating Costs and Expenses

Operating costs and expenses were US$54.0 million, a 17.6% increase from
US$45.9 million in the fourth quarter of fiscal year 2012. Non-GAAP operating
costs and expenses, which excluded share-based compensation expenses, were
US$52.3 million, a 17.6% increase from US$44.5 million in the fourth quarter
of fiscal year 2012.

Cost of revenues increased by 10.1% to US$31.4 million, from US$28.5 million
in the fourth quarter of fiscal year 2012. The increase in cost of revenues
was mainly due to an increase in teacher compensation, rental costs and other
staff costs associated primarily with an expansion of learning center capacity
as well as increases in wages and teacher fees versus the year-ago period.
Non-GAAP cost of revenues, which excluded share-based compensation expenses,
increased by 10.4% to US$31.4 million, from US$28.4 million in the fourth
quarter of fiscal year 2012.

Selling and marketing expenses increased by 37.8% to US$7.6 million, from
US$5.5million in the fourth quarter of fiscal year 2012. Non-GAAP selling and
marketing expenses, which excluded share-based compensation expenses,
increased by 41.9% to US$7.3 million, from US$5.2 million in the fourth
quarter of fiscal year 2012. The increase of selling and marketing expenses in
the fourth quarter of fiscal year 2013 was primarily a result of an increase
in compensation to sales and marketing staff to support a greater number of
programs and service offerings, as well as an increase in brand promotion and
advertising expenses.

General and administrative expenses increased by 21.3% to US$14.4 million,
from US$11.9 million in the fourth quarter of fiscal year 2012. The increase
in general and administrative expenses was mainly due to an increase in
compensation to our general and administrative personnel to support a greater
number of programs and service offerings, as well as the depreciation expenses
for the office space purchased by the Company in Beijing, which commenced in
the fourth quarter of fiscal year 2013. Non-GAAP general and administrative
expenses, which excluded share-based compensation expenses, increased by 19.3%
to US$12.9 million, from US$10.8 million in the fourth quarter of fiscal year
2012.

Total share-based compensation expenses allocated to the related operating
costs and expenses increased by 19.9% to US$1.7 million in the fourth quarter
of fiscal year 2013, from US$1.4 million in the same period of fiscal year
2012.

Impairment loss on Operating Assets

The impairment loss of US$0.6 million incurred in the quarter resulted from
the impairment on the long-term prepayments by the Company in December 2011
for the acquisition of a study-abroad intermediary service operating license.

Gross
Profit

Gross profit increased by 19.2% to US$28.3 million, from US$23.7 million in
the fourth quarter of fiscal year 2012.

Income from Operations

Income from operations decreased by 10.4% to US$5.7 million, from US$6.3
million in the fourth quarter of fiscal year 2012. Non-GAAP income from
operations, which excluded share-based compensation expenses, decreased by
4.8% to US$7.4 million, from US$7.8 million in the fourth quarter of fiscal
year 2012.

Net Income Attributable to TAL Education Group

Net income attributable to TAL decreased by 9.7% to US$6.8 million, from
US$7.6 million in the fourth quarter of fiscal year 2012. Non-GAAP net income
attributable to TAL, which excluded share-based compensation expenses,
decreased by 5.0% to US$8.6million, from US$9.0 million in the fourth quarter
of fiscal year 2012.

Basic and Diluted Net Income per ADS

Basic and diluted net income per ADS were both US$0.09 in the fourth quarter
of fiscal year 2013. Non-GAAP basic and Non-GAAP diluted net income per ADS,
which excluded share-based compensation expenses, were both US$0.11.

Financial Results for the Fiscal Year Ended February 28, 2013

Net Revenues

For the fiscal year 2013, TAL reported net revenues of US$225.9 million,
representing a 27.3% increase from US$177.5 million in the fiscal year 2012.
The increase was primarily due to an increased number of total student
enrollments combined with higher average selling prices (ASPs). Total student
enrollments increased by 18.2% to approximately 816,110 from approximately
690,300 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 and to a lesser degree by increases in enrollments in our
one-on-one tutoring services. ASPs increased by 7.7% to US$277 per enrollment
in fiscal year 2013 from US$257 per enrollment in fiscal year 2012 mainly
driven by the hourly rate increases in the Company's small class business and
the foreign exchange rate fluctuation.

Operating Costs and Expenses

Operating costs and expenses were US$195.1 million, a 24.5% increase from
US$156.7 million in fiscal year 2012. Non-GAAP operating costs and expenses,
which excluded share-based compensation expenses, were US$186.9 million, a
25.6% increase from US$148.8 million in fiscal year 2012.

Cost of revenues increased by 21.1% to US$115.7 million, from US$95.6 million
in fiscal year 2012. The increase in cost of revenues was mainly due to an
increase in teacher compensation, rental costs and other staff costs
associated primarily with an expansion of learning center capacity as well as
increases in wages and teacher fees. Non-GAAP cost of revenues, which excluded
share-based compensation expenses, increased by 21.5% to US$115.6 million,
from US$95.2 million in fiscal year 2012.

Selling and marketing expenses increased by 19.5% to US$27.7 million, from
US$23.2 million in fiscal year 2012. The increase was primarily due to an
increase of sales and marketing staff and related compensation to support an
expanded number of cities in which the Company had learning center operations
and a greater number of programs and service offerings. Non-GAAP selling and
marketing expenses, which excluded share-based compensation expenses,
increased by 19.3% to US$25.9 million, from US$21.7 million in fiscal year
2012.

General and administrative expenses increased by 35.2% to US$51.1 million,
from US$37.8 million in fiscal year 2012. The increase was mainly due to an
increase in compensation for our general and administrative personnel to
support an expanded number of cities in which the Company had learning center
operations and a greater number of programs and service offerings, and the
depreciation of office space purchased in Beijing, which commenced in the
fourth quarter of fiscal year 2013. Non-GAAP general and administrative
expenses, which excluded share-based compensation expenses, increased by 40.6%
to US$44.8 million, from US$31.8 million in fiscal year 2012.

Total share-based compensation expenses that were allocated to related
operating costs and expenses amounted to US$8.3 million in fiscal year 2013,
as compared to US$7.9 in fiscal year 2012.

Gross Profit

Gross profit increased by 34.5% to US$110.2 million, from US$81.9 million in
fiscal year 2012.

Income from Operations

Income from operations increased by 49.4% to US$31.4 million, from US$21.0
million in fiscal year 2012. Non-GAAP income from operations, which excluded
share-based compensation expenses, increased by 37.3% to US$39.7 million, from
US$28.9 million in fiscal year 2012.

Net Income Attributable to TAL Education Group

Net income attributable to TAL increased by 37.5% to US$33.4 million, from
US$24.3 million in fiscal year 2012. Non-GAAP net income attributable to TAL,
which excluded share-based compensation expenses, increased by 29.5% to
US$41.7 million, from US$32.2 million in fiscal year 2012.

Basic and Diluted Net Income per ADS

Basic and diluted net income per ADS were both US$0.43 in fiscal year 2013.
Non-GAAP basic and diluted net income per ADS, which excluded share-based
compensation expenses, were US$0.54 and US$0.53, respectively.

Capital Expenditures

Capital expenditures for fiscal year 2013 were US$6.9 million, representing a
decrease of US$67.4 million from US$74.3 million in fiscal year 2012. The
decrease was driven largely by the purchase of office space of US$62.5 million
in fiscal year 2012.

Cash and Cash Equivalents

As of February 28, 2013, after the dividend payment of US$39.0 million in
December 2012, the Company had US$185.1 million of cash and cash equivalents
and US$24.1 million of term deposits, as compared to US$188.6 million of cash
and cash equivalents and US$10.3 million of term deposits as of February 29,
2012.

Deferred Revenue

As of February 28, 2013, the Company's deferred revenue balance was US$102.5
million as compared to US$85.6 million as of February 29, 2012, representing
an increase of 19.8% versus the same period of the previous year.

Business Outlook

Based on the Company's current estimates, total net revenues for the first
quarter of fiscal year 2014 are expected to be between US$57.7 million and
US$59.2 million, representing an increase of 17% to 20% on a year-over-year
basis.

These estimates reflect the Company's current expectation, which is subject to
change.

Conference Call

The Company will host a conference call and live webcast to discuss its
financial results for the fourth fiscal quarter and fiscal year 2013 ended
February 28, 2013 at 8:00 a.m. Eastern Time on April 23, 2013 (8:00 p.m.
Beijing time on April 23, 2013).

The dial-in details for the live conference call are as follows:

- U.S. toll free:      +1-866-519-4004
- Hong Kong toll free: 800-930-346
- China toll:          400-620-8038
- International toll:   +65-6723-9381
Conference ID:          34263430

A live and archived webcast of the conference call will be available on the
Investor Relations section of TAL's website at en.xueersi.org.

A telephone replay of the conference call will be available through April 30,
2013.

The dial-in details for the replay are as follows:

- U.S. toll free:      +1-855-452-5696
- Hong Kong toll free: 800-963-117
- China toll free:     400-120-0932
- International toll:  +61-2-8199-0299
Conference ID:          34263430

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are
made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements. Among
other things, the outlook for the first quarter of fiscal year 2014,
quotations from management in this announcement, as well as TAL Education
Group's strategic and operational plans, contain forward-looking statements.
The Company may also make written or oral forward-looking statements in its
reports filed with, or furnished to, the U.S. Securities and Exchange
Commission, in its annual reports to shareholders, in press releases and other
written materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical facts,
including statements about the Company's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve inherent risks
and uncertainties. A number of factors could cause actual results to differ
materially from those contained in any forward-looking statement, including
but not limited to the following: its ability to continue to attract students
to enroll in its courses; its ability to continue to recruit, train and retain
qualified teachers; its ability to improve the content of its existing course
offerings and to develop new courses; its ability to maintain and enhance its
brand; its ability to maintain and continue to improve its teaching results;
and its ability to compete effectively against its competitors. Further
information regarding these and other risks is included in the Company's
reports filed with, or furnished to the Securities and Exchange Commission.
All information provided in this press release and in the attachments is as of
the date of this press release, and TAL Education Group undertakes no duty to
update such information or any forward-looking statement, except as required
under applicable law.

About TAL Education Group

TAL Education Group, which operates under the brand "Xueersi," is a leading
K-12 after-school tutoring service provider in China. Its tutoring services
cover the core subjects in China's school curriculum, including mathematics,
English, Chinese, physics, chemistry and biology, and are delivered through
three formats: small class, one-on-one, and online courses. The Company's
network includes 255 physical learning centers as of February 28, 2013,
located in 15 key cities in China: Beijing, Shanghai, Guangzhou, Shenzhen,
Tianjin, Wuhan, Xi'an, Chengdu, Nanjing, Hangzhou, Taiyuan, Zhengzhou,
Chongqing, Suzhou and Shenyang. It also operates www.eduu.com, a leading
online education platform in China. The Company's ADSs trade on the New York
Stock Exchange under the symbol "XRS."

About Non-GAAP Financial Measures

In evaluating its business, TAL considers and uses the following measures
defined as non-GAAP financial measures by the SEC as supplemental metrics to
review and assess its operating performance: non-GAAP operating costs and
expenses, non-GAAP cost of revenues, non-GAAP selling and marketing expenses,
non-GAAP general and administrative expenses, non-GAAP income from operations,
non-GAAP net income attributable to TAL, non-GAAP basic and non-GAAP diluted
net income per ADS. To present each of these non-GAAP measures, the Company
excludes share-based compensation expenses. The presentation of these non-GAAP
financial measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in accordance
with GAAP. For more information on these non-GAAP financial measures, please
see the table captioned "Reconciliations of non-GAAP measures to the most
comparable GAAP measures" set forth at the end of this release.

TAL believes that these non-GAAP financial measures provide meaningful
supplemental information regarding its performance and liquidity by excluding
share-based expenses that may not be indicative of its operating performance
from a cash perspective. TAL believes that both management and investors
benefit from these non-GAAP financial measures in assessing its performance
and when planning and forecasting future periods. These non-GAAP financial
measures also facilitate management's internal comparisons to TAL's historical
performance and liquidity. TAL computes its non-GAAP financial measures using
the same consistent method from quarter to quarter and from period to period.
TAL believes these non-GAAP financial measures are useful to investors in
allowing for greater transparency with respect to supplemental information
used by management in its financial and operational decision making. A
limitation of using non-GAAP measures is that these non-GAAP measures exclude
share-based compensation charges that have been and will continue to be for
the foreseeable future a significant recurring expense in the Company's
business. Management compensates for these limitations by providing specific
information regarding the GAAP amounts excluded from each non-GAAP measure.
The accompanying tables have more details on the reconciliations between GAAP
financial measures that are most directly comparable to non-GAAP financial
measures.

For further information, please contact:

Mei Li
Investor Relations
TAL Education Group
Tel: +861052926658
Email: ir@xueersi.com

Caroline Straathof
IR Inside
Tel: +31 6 5462 4301
Email: info@irinside.com



TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars)
                                                                                                 As of              As of

                                                                                                 February29,2012  February28,2013
ASSETS
Currentassets
 Cash and cash equivalents                                                                      $ 188,579,767      $ 185,080,673
 Term deposits                                                                                  10,328,116         24,110,716
 Restricted cash                                                                                -                  2,270,269
 Available-for-sale securities                                                                  361,803            399,955
 Inventory                                                                                      223,611            410,167
 Deferred tax assets-current                                                                    1,729,758          2,260,446
 Prepaid expenses and other current assets                                                      9,011,975          11,906,317
Total current assets                                                                             210,235,030        226,438,543
 Property and equipment, net                                                                    76,726,219         76,115,088
 Deferred tax assets-non-current                                                                490,222            538,464
 Rental deposit                                                                                 4,545,605          5,179,073
 Intangible assets, net                                                                         183,523            1,724,444
 Goodwill                                                                                       548,825            555,194
 Long-term prepayments                                                                          1,923,481          -
Long-term investment                                                                             -                  5,491,073
Total assets                                                                                     $ 294,652,905      $ 316,041,879
LIABILITIES AND EQUITY
Current liabilities
Accounts payable (including accounts payable of the

 consolidated VIEs without recourse to TAL Education                                           $ 2,863,596        $ 2,009,473

 Group of 1,993,297 and 1,739,337 as of February 29,
 2012, andFebruary 28, 2013, respectively)
Deferred revenue (including deferred revenue of the

 consolidated VIEs without recourse to TAL Education                                           85,594,032         102,513,876

 Group of 50,395,945 and 67,743,448 as of February 29,
 2012, and February 28, 2013, respectively)
Accrued expenses and other current liabilities (including

 accrued expenses and other current liabilities of the
                                                                                                 15,284,190         17,196,001
 consolidated VIEs without recourse to TAL Education

 Group of 9,546,915 and 11,269,507 as of February 29,
2012, and February 28, 2013, respectively)
Income tax payable (including income tax payable of the
 consolidated VIEs without recourse to TAL Education
                                                                                                 637,302            2,778,305
Group of 2,206,266 and 2,165,785 as of February 29,
2012, and February 28, 2013, respectively)
Total current liabilities                                                                        104,379,120        124,497,655
Deferred tax liabilities-non-current (including deferred tax
 liabilities-non-current of the consolidated VIEs without
 recourse to TAL Education Group of 45,881 and 36,845                                          156,494            98,945
 as of February 29, 2012, and February 28, 2013,
 respectively)
Total liabilities                                                                                104,535,614        124,596,600
TAL Education Group Shareholders' Equity
Class A common shares                                                                            45,277             68,314
Class B common shares                                                                            109,681            87,806
Additional paid-in capital                                                                       119,769,989        86,016,387
Statutory reserve                                                                                10,502,713         12,291,341
Retained earnings                                                                                54,779,267         86,430,705
Accumulated other comprehensive income                                                           4,910,364          6,550,726
Total TAL Education Group's equity                                                               190,117,291        191,445,279
Total liabilities and equity                                                                     $ 294,652,905      $ 316,041,879



TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
Comprehensive Income
(In U.S. dollars, except share, ADS, per share and per ADS data)
                                                           For the Three Months      For the Fiscal Year Ended
                                                           Ended
                                                                                     February 29/28,
                                                           February 29/28,
                                                           2012         2013         2012          2013
Netrevenues $            $            $             $
                                                           52,215,556   59,647,816   177,519,672   225,931,095
Cost of revenues                                           28,510,837   31,388,999   95,587,218    115,748,650
Gross profit                                               23,704,719   28,258,817   81,932,454    110,182,445
Operating expenses (note 1)
 Selling and marketing                                   5,533,211    7,624,043    23,166,231    27,673,598
 General and administrative                              11,850,869   14,379,389   37,814,962    51,125,534
 Impairment loss on operating                            -            594,162      139,660       594,162
 assets
Total operating expenses                                   17,384,080   22,597,594   61,120,853    79,393,294
Government subsidies                                       -            1,630        213,270       632,269
Income from operations                                     6,320,639    5,662,853    21,024,871    31,421,420
Interest income                                            909,394      1,432,391    3,499,926     5,343,445
Other income / (expenses)                                  1,214,199    (115,413)    3,945,306     776,293
Income before income tax provision                         8,444,232    6,979,831    28,470,103    37,541,158
Provision for income tax                                   (862,055)    (131,745)    (4,156,450)   (4,101,092)
Net income                                                 7,582,177    6,848,086    24,313,653    33,440,066
                                                                                    
Total net income attributable                                           $ 6,848,086                $
 to TAL Education Group                             $ 7,582,177               $             33,440,066
                                                                                     24,313,653
Net income per common share
Basic                                                      $ 0.05       $ 0.04       $ 0.16        $ 0.21
Diluted                                                    0.05         0.04         0.16          0.21
Net income per ADS (note 2)
Basic                                                      0.10         0.09         0.32          0.43
Diluted                                                    $ 0.10       $ 0.09       $ 0.31        $ 0.43
Other comprehensive income, net of tax                     1,060,626    158,093      3,035,785     1,640,362
Comprehensive income                                       8,642,803    7,006,179    27,349,438    35,080,428
Comprehensive income attributable                          $ 8,642,803  $ 7,006,179  $             $
 to TAL Education Group                                                      27,349,438    35,080,428
Weighted average shares used in
 calculating net income per
 common share


                                                                                                
 Basic
                                                           154,958,044  156,120,150  154,000,219   155,607,458
 Diluted                                           156,151,875  156,525,098  155,874,381   156,631,090
Note1: Share-based compensation expenses are included in the operating costs and expenses as
follows:
                                                           For the Three Months      For the Fiscal Year
                                                           Ended February 29/28      Ended February 29/28
                                                           2012         2013         2012          2013
Cost of revenues                                           $ 71,359     $ 3,738      $ 417,984     $ 105,756
Selling and marketing                                      361,164      283,448      1,497,266     1,814,748
General and administrative                                 1,004,448    1,435,864    5,985,993     6,363,396
Total                                                      $ 1,436,971  $ 1,723,050  $ 7,901,243   $ 8,283,900
Note 2: Each ADS represents two Class A common shares.





TAL EDUCATION GROUP
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures
(In U.S. dollar, except share, ADS, per share and per ADS data)
                                                          For the Three Months      For the Fiscal Year Ended
                                                          Ended February 29/28,     February 29/28,
                                                          2012         2013         2012         2013
Costofrevenues $28,510,837  $31,388,999  $            $115,748,650
                                                                                    95,587,218
Share-based compensation expense                          71,359       3,738        417,984      105,756
in cost of revenues
Non-GAAP cost of revenues                                 28,439,478   31,385,261   95,169,234   115,642,894
Selling and marketing expenses                            5,533,211    7,624,043    23,166,231   27,673,598
Share-based compensation expense                          361,164      283,448      1,497,266    1,814,748
in selling and marketing expenses
Non-GAAP selling and marketing expenses                   5,172,047    7,340,595    21,668,965   25,858,850

                                                          11,850,869   14,379,389   37,814,962   51,125,534
General and administrative expenses
Share-based compensation expense                          1,004,448    1,435,864    5,985,993    6,363,396
in general and administrative expenses
Non-GAAP general and administrative expenses              10,846,421   12,943,525   31,828,969   44,762,138
Operating costs and expenses                              45,894,917   53,986,593   156,708,071  195,141,944
Share-based compensation expense                          1,436,971    1,723,050    7,901,243    8,283,900
in operating costs and expenses
Non-GAAP operating costs and expenses                     44,457,946   52,263,543   148,806,828  186,858,044
Income from operations                                    6,320,639    5,662,853    21,024,871   31,421,420
Share based compensation expenses                         1,436,971    1,723,050    7,901,243    8,283,900
Non-GAAP income from operations                           7,757,610    7,385,903    28,926,114   39,705,320
Net income attributable to TAL Education Group            7,582,177    6,848,086    24,313,653   33,440,066
Share based compensation expenses                         1,436,971    1,723,050    7,901,243    8,283,900
Non-GAAP net income attributable to                      $ 9,019,148  $ 8,571,136  $            $ 41,723,966
TAL Education Group                                                              32,214,896




Net income per ADS
Basic                                                     $ 0.10       $ 0.09       $ 0.32       $ 0.43
Diluted                                                   0.10         0.09         0.31         0.43
Non-GAAP Net income per ADS(note 3)
Basic                                                     0.12         0.11         0.42         0.54
Diluted                                                   $ 0.12       $ 0.11       $ 0.41       $ 0.53
ADSs used in calculating net income per ADS
Basic                                                     77,479,022   78,060,075   77,000,109   77,803,729
Diluted                                                   78,075,937   78,262,549   77,937,191   78,315,545
Note 3: The Non-GAAP adjusted net income per ADS is computed using Non-GAAP adjusted net income and the same
number of ADSs used in GAAP basic and diluted EPS calculation.



SOURCE TAL Education Group
 
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