NEW YORK, Nov. 27 /PRNewswire-FirstCall/ --
Edison Schools Inc. (Nasdaq: EDSN), the nation's leading private manager of
public schools, announced today that it had been advised by NASDAQ that it had
met requirements for continued listing on the exchange. Specifically, the
company's shares have traded above $1.00 for the past 10 trading days, a
substantial improvement over prior months.
"We were optimistic that this would be the case, given the tremendous
inherent value of Edison," said Chris Whittle, the company's Founder and CEO.
In a letter to Edison, NASDAQ said, "... the closing price of the company's
Class A common stock has been at $1.00 per share or greater for at least
10 consecutive trading days. Accordingly, the company has regained compliance
with the Rule and this matter is now closed."
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
$26,000,000. 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
$219,000,000 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 27,
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 27, 2002.
SOURCE Edison Schools Inc.
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Related links:
http://www.edisonschools.com
CONTACT:
Chris Scarlata, Chief Financial Officer,
+1-212-419-1645, or Adam Tucker, VP Communications,
+1-212-419-1602, both of Edison Schools Inc.
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