HERNDON, Va., Sep 12, 2011 (BUSINESS WIRE) --
K12 Inc. (NYSE: LRN; the "Company") announced today that on a
preliminary and unaudited basis, it expects to report fiscal year ended
June 30, 2011 revenues consistent with prior guidance. However, due to
delays resulting from the implementation of a new ERP system, including
the integration of diverse accounting systems from our recent
acquisitions, the Company will require additional time to file its
annual report on SEC Form 10-K. We anticipate that we will file during
the week of October 3, 2011.
Reasons for Delay in Filing of Form 10-K for
Year Ended June 30, 2011
The Company previously reported in filings with the Securities and
Exchange Commission (the "SEC"), starting with the June 30, 2010 Form
10-K and quarterly filings thereafter, of the major effort underway to
implement an enterprise-wide financial management solution which went
"live" on April 1, 2011. Since then, substantial external resources and
Company accounting staff have been engaged in intensive quality control
and checking of the new ERP system, including the interfaces with the
multiple accounting systems inherited with our acquisitions. We stated
in our Form 12b-25 filing that we expected to file the Company's annual
SEC Form 10-K report by September 13, 2011. With the time required to
complete the quality control checking and taking into account external
review and analysis, the Company is announcing that it will not be able
to file its Form 10-K by that date.
This delay is not due to any disagreements with the Company's
independent registered public accounting firm. The ERP system
implementation is not affecting our enrollment processes, material
shipments, marketing, customer experience, or any other part of our
business. Moreover, and based on its review of the unaudited financial
results, management anticipates that its fiscal year 2011 revenues are
consistent with its previous guidance.
Selected Preliminary Financial Data and Update
on Operations
Total revenues for the year ended June 30, 2011 are expected to increase
to between approximately $515 million and $520 million, consistent with
prior guidance and representing a significant increase compared to
revenues of $384.5 million for the year ended June 30, 2010. The
Company's financial position is strong as evidenced by a cash balance of
approximately $190 million at June 30, 2011. Furthermore, the Company
had no bank debt other than notes payable and capital lease obligations
for computers totaling approximately $25 million. This has also been a
strong business development year with regard to the opening of new
states and the removal or expansion of enrollment caps in several
existing states that will impact future results.
The Company has cancelled its conference call scheduled for September
14, 2011. Management will present at the BMO Back-to-School conference
on September 15th, at 1:15 PM ET. A webcast of this presentation will be
available at the Investor Relations section of our website, www.k12.com.
Forward Statements
This press release contains forward-looking statements within the
meaning of federal securities regulations. These forward-looking
statements are identified by their use of terms and phrases such as
"anticipate," "believe," "could," "estimate," "expect," "intend," "may,"
"plan," "predict," "project," "will," "continue" and other similar terms
and phrases, including references to assumptions and forecasts of future
results. Forward-looking statements are not guarantees of future
performance and involve known and unknown risks, uncertainties and other
factors which may cause the actual results to differ materially from
those anticipated at the time the forward-looking statements are made.
These risks include, but are not limited to: the reduction of per pupil
funding amounts at the schools we serve; reputation harm resulting from
poor performance or misconduct of other virtual school operators;
challenges from virtual public school opponents; failure of the schools
we serve to comply with regulations resulting in a loss of funding;
discrepancies in interpretation of legislation by regulatory agencies
that may lead to payment or funding disputes; termination of our
contracts with schools due to a loss of authorizing charter; failure to
renew existing contracts with schools; increased competition; and other
risks and uncertainties associated with our business described in the
Company's filings with the Securities and Exchange Commission. Although
the Company believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, it can give no
assurance that the expectations will be attained or that any deviation
will not be material. All information in this release is as of September
12, 2011, and the Company undertakes no obligation to update any
forward-looking statement to conform the statement to actual results or
changes in the Company's expectations.
About K12 Inc.
K12 Inc. (NYSE: LRN), a technology-based education company, is the
largest provider of proprietary curriculum and online education programs
for students in kindergarten through high school in the U.S. K12
provides its curriculum and academic services to public and private
online schools, traditional classrooms, blended school programs, and
directly to families. K12 also operates the K12
International AcademyTM, an accredited, diploma-granting
online private school.
Founded in 2000, K12 has provided over 2 million courses -
core subjects, AP(R), world languages, credit recovery, and
electives - to more than 200,000 students worldwide. Over 90 percent of
parents surveyed are satisfied with the K12 program and agree
that their children have benefited academically with K12.
Students graduating from K12 virtual schools have been
accepted to hundreds of higher education institutions including many of
the nation's top-ranked colleges and universities.
In April 2010, K12 joined with Middlebury College to form a
new venture called Middlebury Interactive Languages to create and
distribute innovative online language courses for pre-college students.
In July 2010, K12 acquired KC Distance Learning, Inc., a
nationally recognized leader in online learning with brands that provide
high quality education products and online school solutions: Aventa
LearningTM, The KeystoneTM School and iQ Academies(R).
In December, K12 acquired The American Education Corporation,
a leading provider of instructional and assessment software for
kindergarten through adult learners. In January, K12
finalized a strategic investment to acquire a minority interest in Web
International English, a leader in English language training for
thousands of students in China.
K12 is accredited through AdvancED, the world's largest
education community. More information on K12 can be found at: www.K12.com
© 2011 K12Inc.K12
and iQ Academies are registered trademarks, and the K12 logo,
Aventa Learning, Keystone and K12 International
Academy are trademarks of K12 Inc. or its subsidiaries.All other
trademarks are the property of their respective owners.
SOURCE: K12 Inc.
K12 Inc.
Investor Contact:
Keith Haas
SVP, Finance and Investor Relations
703-483-7077
khaas@k12.com
or
Press Contact:
Jeff Kwitowski
VP, Public Relations
703-483-7281
jkwitowski@k12.com