Reports It Has Currently Purchased Approximately 180,000 Shares
of 5,400,000 Authorized Under Repurchase Program
NEW YORK, Dec. 4 /PRNewswire-FirstCall/ -- Edison Schools (Nasdaq: EDSN),
the nation's largest private manager of public schools, said it expects to
continue the repurchase of its shares in the weeks ahead. Responding to
speculation that it has completed its share repurchase program, the company
said it has repurchased approximately 180,000 shares, a small portion of its
plan to repurchase up to 5,400,000 of its outstanding shares (representing
approximately 10% of the company).
"The company recently increased its guidance on EBITDA by 30%, net of
stock based compensation expense, to at least $26 million for the fiscal year
ending June 2003," said Chip Delaney, the company's Vice Chairman. "This
means our current market cap is approximately 3X EBITDA (for the fiscal year
ending June 30th 2003) and at about 40% of our current book value. In
addition, present Enterprise Value divided by projected EBITDA for the fiscal
year ending June 30th 2003 is approximately 6X (with net debt being
approximately 3X projected EBITDA.) We believe these measures, coupled with
our confidence in future performance, represent a compelling long-term
investment."
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 54,000,000 shares outstanding. The company had approximately
$30 million of cash on its balance sheet at the end of September, 2002. A
substantial portion of this cash has been expended to open new schools and to
meet operating expenses. 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 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 edisonschools.com.
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
December 4, 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 December 4, 2002.
SOURCE Edison Schools
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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
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