Share Repurchases to Continue
Current Purchases Represent Approximately 25% of 5,400,000 Shares Authorized
Under Repurchase Program
NEW YORK, Jan. 6 /PRNewswire-FirstCall/ -- Edison Schools (Nasdaq: EDSN),
the nation's largest private manager of public schools, said it has purchased
1,374,000 of its shares as of December 31, 2002 under its announced share
repurchase plan. The company said it expects to continue the repurchase of
its shares in the weeks ahead. The shares already purchased represent
approximately 25% of the total authorized under the repurchase plan which
allows the company to repurchase up to 5,400,000 shares representing
approximately 10% of those outstanding.
"The company continues to execute toward its year-end plan of $26,000,000
in EBITDA, net of stock based compensation expense, as well as a year-end cash
balance of at least $25,000,000," said Chris Whittle, the company's Founder
and CEO. "This means our current market cap is approximately 3X EBITDA (for
the fiscal year ending June 30th 2003) and at about 40% of our current book
value. In addition, present Enterprise Value divided by projected EBITDA for
the fiscal year ending June 30th 2003 is approximately 6X (with net debt being
approximately 3X projected EBITDA.) We believe these measures, coupled with
our confidence in future performance and our improving cash position,
represent a compelling long-term investment."
The company announced last week that it ended calendar year 2002 with
approximately $35 million of cash on its balance sheet, up from $31,500,00 at
the end of September, 2002. Management believes that this cash together with
proceeds from planned refinancings of its charter notes and with continued
collections of receivables from its clients will be sufficient to fund this
repurchase plan while meeting all of the company's obligations.
Purchases under Edison's share repurchase program may be made from time to
time in the open market or in privately negotiated transactions, consistent
with applicable regulatory and contractual requirements and, depending on
market conditions and other factors, may be commenced, suspended, or
discontinued at any time or from time to time without prior notice. Before the
commencement of the share repurchase program, the company had approximately
54,000,000 shares outstanding.
About Edison Schools
Edison Schools manages 150 public schools with a total enrollment of over
80,000 students. In addition, it serves over 30,000 students in its summer
programs. Through contracts with local school districts and public charter
school boards, Edison generally assumes educational and operational
responsibility for individual schools in return for funding that is comparable
to that spent on other public schools in the area. Over the course of three
years of intensive research, Edison's team of leading educators and scholars
developed an innovative, research-based curriculum and school design. Edison
opened its first four schools in August 1995, and has grown rapidly in every
subsequent year. For more information, please visit
http://www.edisonschools.com .
Any statements in this press release and any other press release issued by
Edison on or about the date hereof about future expectations, plans and
prospects for Edison, including statements containing the words "believes,"
"anticipates," "plans," "expects," "will," and similar expressions, constitute
forward-looking statements within the meaning of The Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from
those indicated by such forward-looking statements as a result of various
important factors, including the risk factors discussed in our most recent
annual report on form 10-K/A filed with the SEC. The forward-looking
statements included in this press release represent Edison's estimates as of
October 30, 2002. Edison anticipates that subsequent events and developments
will cause its estimates to change. While Edison may elect to update these
forward-looking statements at some point in the future, Edison specifically
disclaims any obligation to do so. These forward-looking statements should not
be relied upon as representing Edison's estimates or views as of any date
subsequent to January 6, 2003.
SOURCE Edison Schools
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Related links:
http://www.edisonschools.com
CONTACT:
Chris Scarlata, Chief Financial Officer,
+1-212-419-1645, or Adam Tucker, Vice President, Communications,
+1-212-419-1602, both of Edison Schools
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