Company Also Reconfirms Current Year Guidance of $26 Million EBITDA
NEW YORK, Nov. 22 /PRNewswire-FirstCall/ -- Edison Schools (Nasdaq: EDSN),
the nation's largest private manager of public schools, announced today that
it expects its 2003 summer school student enrollment to increase by at least
33%, from 30,000 to over 40,000. The company attributed the expected increase
to strong renewals and its expansion into three new states. "We are seeing
across the board improvements in our summer school activities," said Chris
Whittle, Edison's CEO.
In addition, the company reconfirmed its guidance for the current fiscal
year, including its increased EBITDA estimates. Edison recently raised its
EBITDA estimates for the total company in the current fiscal year by 30%,
saying it expects to generate annual EBITDA of $26 million. The company
confirmed 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.
Edison also confirmed 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 recently announced that it was entering the After-School and
Supplemental Services businesses, as well as substantially expanding its
Summer School business.
About Edison
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. 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
November 22, 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 November 22, 2002.
SOURCE Edison Schools
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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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