Company Comments on 'Going Private' Speculation
NEW YORK, Nov. 14 /PRNewswire-FirstCall/ --
Edison Schools Inc. (Nasdaq: EDSN), the nation's leading private manager of
public schools, announced today that it will commence the planned repurchase
of up to 5,400,000 shares within the next few days.
The company also commented on recent speculation in the media that the
company might "go private." Edison confirmed that it had received inquiries
in this regard and that it had provided financial information to one
interested party. The company said it had not solicited or received any
offers regarding "going private."
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 million shares outstanding. The company's cash on hand as of June 30, 2002
was approximately $40 million. A substantial portion of this cash has been
expended to open new schools and to meet operating expenses. The company had
approximately $30 million of cash on its balance sheet 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.
ABOUT EDISON SCHOOLS
Edison is the nation's largest private manager of public schools. Edison
educates approximately 110,000 students in 150 full year schools and
175 summer schools. Through contracts with local school districts, states,
and public charter school boards, Edison assumes educational and operational
responsibility for individual schools in return for funding that is generally
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 curriculum and school design. Edison opened
its first four schools in August 1995, and has grown rapidly in every
subsequent year.
Any statements in this press release about future expectations, plans and
prospects for Edison, including statements about Edison's future financial
results and other 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 that Edison could lose revenue if it is unable to
enroll enough students or to attract and retain enough principals and
teachers, Edison's management agreements involve financial risk and are
terminable under specified circumstances prior to their expiration, Edison
could be come liable for its charter schools' financial obligations and other
factors discussed in our most recent Annual Report on Form 10-K filed with the
SEC on September 30, 2002. In addition, the forward-looking statements
included in this press release represent Edison's estimates as of November 14,
2002. Edison anticipates that subsequent events and developments will cause
Edison's estimates to change. However, 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 November 14, 2002.
SOURCE Edison Schools Inc.
 back to top
Related links:
http://www.edisonschools.com
CONTACT:
Chris Scarlata, Chief Financial Officer of
Edison Schools Inc., +1-212-419-1645
|
