Company Also Says It Expects to Achieve First Substantial
Net Income in Fourth Quarter of Current Fiscal Year
Site Contribution Expected to Reach Approximately $100 Million
NEW YORK, Oct. 11 /PRNewswire-FirstCall/ -- Edison Schools (Nasdaq: EDSN),
the nation's largest private manager of public schools, said its expects to
post at least a $20 million EBITDA, net of stock-based compensation expense,
in the current fiscal year as well as achieve substantial net income in the
fourth quarter of its current fiscal year.
"We are now well into our fiscal year with all of our sites open, our
enrollments largely determined, and our HQ re-engineering substantially
complete. This summer we provided our shareholders guidance on our expected
results and we now have sufficient visibility to strongly reaffirm our earlier
expectations," said Chris Whittle, Edison's founder and CEO. "These expected
results would represent a major financial accomplishment for the company."
The company said it would provide further details on its expected results
during its First Quarter Earnings Call scheduled for next month. However, it
did provide certain factors which are driving the anticipated improvements.
"We expect major progress this year for two key reasons," said Whittle.
"First, the company's site contribution before depreciation and amortization
is expected to reach approximately $100,000,000, a record in both absolute and
percentage terms. This is being driven by enrollment growth, strong summer
school performance, and by discontinuing a handful of unprofitable
relationships. Second, our central spending as a percentage of revenue is
expected to improve as it has always done. In fact, we expect our central
spending to improve this year in absolute terms as well."
About Edison
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
quarterly report filed with the SEC, and other factors such as, among other
things, the possibility that: (1) Edison, its independent auditors and/or the
SEC may identify additional items that materially and adversely affect
Edison's financial results; (2) the financing discussed separately by Edison
today may not be consummated; and (3) the events relating to the informal SEC
inquiry or its settlement may result in defaults under Edison's material
agreements or give rise to costly and protracted litigation against Edison.
The forward-looking statements included in this press release represent
Edison's estimates as of October 11, 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 October 11, 2002.
SOURCE Edison Schools
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Related links:
http://www.edisonschools.com
CONTACT:
Adam Tucker, VP Communications, Edison
Schools, +1-212-419-1602
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