Company Says First District Now in Operation With
Additional Widespread Interest
Focus is on 12 States
NEW YORK, Nov. 20 /PRNewswire-FirstCall/ --
Edison Schools Inc. (Nasdaq: EDSN), the nation's leading private manager of
public schools, gave an update today on the marketing of its Achievement
Management Solutions through its Edison Affiliates division. With its first
district now in operation, the company is focusing its marketing efforts on
12 states and has discussions underway with nearly 100 districts nationwide
serving over 300,000 students. Edison is offering its Achievement Management
for $85 per student per year.
"In order to manage our own schools, Edison built a variety of
state-of-the-art-systems. Over the past two years many districts have
approached us interested in purchasing certain of these systems, rather than
incurring the costs of building their own," said Jim Howland, Edison Chief
Development Officer. "In response, we conducted research on which of our
various capabilities would be of most interest to districts. One particular
cluster of systems, which we call Achievement Management Solutions, registered
very high marks. This is the first service we are making available through
our Affiliates division."
"Specifically, Edison has developed three strengths in Achievement
Management," said John Chubb, Edison Chief Education Officer. "First, we have
created an electronic capability called Benchmark Assessments which provide
teachers and administrators with a monthly analysis of how individual students
are progressing against end-of-year state specific standards. Second, we have
developed a series of training/professional development programs designed to
help teachers and staff use this data, with particular emphasis on how
teachers can alter instructional strategies to maximize student achievement
growth. Finally, Edison has created a position called Achievement Advisor,
based on the 14 full-time "achievement coaches" who currently serve our
150 partnership schools. Edison is now offering these three strengths (our
electronic systems, our training, and our coaching system) to districts
throughout the country."
The company expects its Achievement Management Solutions to become a "4th
channel" of business with the other three being Contract Schools, Charter
Schools and Summer School/After School/Supplemental Services. "We believe
this is going to emerge as a very important channel within Edison," said
Howland. "There are 15,000 school districts in the United States serving
nearly 50 million children and each and every school system is now responding
to increased accountability demands. We've spent millions developing
achievement systems for our own schools. Districts immediately realize how
powerful these are. Most important, the districts understand that we are
offering much more than our software. We're also providing a wrap-around of
know-how that only comes through our experience of actually running schools."
Edison has launched the program with a 1,900 student school district in
Colorado this past summer. The company will estimate its revenues for this
new channel next spring when most contracts for FY04 will be complete.
Edison recently raised its EBITDA estimates for the total company in the
current fiscal year by 30 percent, saying it expects to generate annual EBITDA
of $26 million. The company also said that it expects to post positive net
income in the fourth quarter of this fiscal year, the first quarterly net
income in the company's 10-year history.
In addition, Edison announced that it expects to generate approximately
$50 to $70 million in incremental cash flow during the next three quarters
from refinancing of a portion of its notes receivable from charter schools
(approximately $30-$50 million), and improvements in the collection of
receivables from its managed schools customers (approximately $20 million).
The company's balance sheet remains strong with shareholder equity of
$219 million or $4.07 per share, including $31.5 million of cash on hand at
September 30, 2002. The company expects to end the year with cash on the
balance sheet of approximately $25 million. This amount would be after
material reduction in the company's debt level and substantial investment in
FY04 new business.
The company also recently announced that it was entering the After-School
and Supplemental Services businesses, as well as substantially expanding its
Summer School business.
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
178 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 20,
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 20, 2002.
SOURCE Edison Schools Inc.
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Related links:
http://www.edisonschools.com
CONTACT:
Adam Tucker, VP Communications of Edison
Schools, +1-212-419-1602
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