Expects to End Fiscal Year with Cash Balance of $25 Million and with Reduced
Debt Continues to Expect First Net Income in 4th Quarter Of Current Fiscal
Year
NEW YORK, Dec. 5 /PRNewswire-FirstCall/ -- At its annual shareholder
meeting today, Edison Schools (Nasdaq: EDSN), the nation's largest private
manager of public schools, confirmed its recently improved EBITDA guidance for
the current fiscal year as well as other guidance on important financial
measures. Specifically, the company said it was confirming the following
guidance for the current fiscal year ending June 30, 2003:
1. EBITDA of $26,000,000, improved 30% from previous guidance of
$20,000,000.
2. A reduction of its annual loss of at least 75% versus the FY02 period.
3. For the first time in the company's history, posting of quarterly net
income in the 4th quarter of this fiscal period.
4. Generation of $50 to $70 million in incremental cash flow between now
and June 30, 2003 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).
5. An ending cash balance for the current fiscal year of approximately
$25,000,000 and a reduction in the company's debt.
6. An enrollment increase in its managed school business of approximately
6,000 students, from approximately 74,000 in FY02 to 80,000 in the
current fiscal year.
7. A projected increase in enrollment of at least 10,000 students in its
summer schools business, from 30,000 this past summer to over 40,000
for the summer of 2003.
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.
"We continue to expect that this year's financial performance will be, by
far, the best in the company's 10-year history," said Chris Whittle, the
company's Founder and CEO. Chip Delaney, Edison's Vice Chairman added, "We're
already working hard to insure that the coming year surpasses this one in
every critical measure. We will provide our initial guidance on FY04 late
this spring once our contracting season is complete."
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 December 5, 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 5, 2002.
SOURCE Edison Schools
 back to top
Related links:
http://www.edisonschools.com
CONTACT:
Adam Tucker, VP Communications, of Edison
Schools, +1-212-419-1602
|
