EPS Increases 60.0% to $0.72 on Revenue Growth of Nearly 20.0% to
$848.2 Million
HERNDON, Va.--(BUSINESS WIRE)--Aug. 29, 2013--
K12 Inc. (NYSE: LRN), a leading provider of proprietary,
technology-based curriculum, software and education services created for
individualized learning for students primarily in kindergarten through
12th grade, today announced its results for the fourth fiscal quarter
and full fiscal year ended June 30, 2013.
Financial Highlights for the Fiscal Year Ended June 30, 2013
-
Revenues for the fiscal year ended June 30, 2013 grew 19.7% to $848.2
million, primarily due to a 12.7% increase in average student
enrollments and an increase in average revenue per student in our
managed public schools business.
-
EBITDA, a non-GAAP measure (see reconciliation below), for the fiscal
year ended June 30, 2013 increased 28.0% to $111.4 million and EBITDA
margin grew to 13.1%.
-
Operating income grew 57.6% to $45.7 million.
-
Net income attributable to common and Series A stockholders grew by
60.6% to $28.1 million.
-
Diluted net income attributable to common stockholders per share,
which reflects a pro rata allocation of net income to Series A
stockholders, grew 60.0% to $0.72.
Financial Highlights for the Three Months Ended June 30, 2013 (Fourth
Quarter Fiscal Year 2013)
-
Revenues for the fourth quarter of FY 2013 increased 19.2% to $203.1
million, primarily due to organic revenue growth of 20.8% in our core
Managed Public Schools business.
-
EBITDA, a non-GAAP measure (see reconciliation below), for the fourth
quarter of FY 2013 grew 7.3% to $19.0 million.
-
Operating income decreased 30.0% to $1.4 million.
-
Net income attributable to common and Series A stockholders grew by
27.8% to $2.3 million.
-
Diluted net income attributable to common stockholders per share,
which reflects a pro rata allocation of net income to Series A
stockholders, grew by 20.0% to $0.06.
Comments from Management
Nate Davis, Executive Chairman of the Board, commented: “I am very
pleased with the financial results K12 delivered in fiscal 2013. We
remain intensely focused on improving academics and, to that end, we
have introduced innovative academic pilots to improve our learning model
and have launched new diagnostic assessment tools. We are excited about
the new school year and grateful to have the opportunity to offer an
individualized and adaptive education to students around the world.”
Cash, Capital Expenditures and Capital Leases
As of June 30, 2013, the Company had cash and cash equivalents of $181.5
million, reflecting an increase of $36.8 million from June 30, 2012.
Capital expenditures for the fiscal year ended June 30, 2013 were $50.3
million, reflecting an increase of $1.7 million, and was comprised of:
-
$8.3 million for property and equipment,
-
$23.4 million for capitalized software development, and
-
$18.6 million for capitalized curriculum.
Capital leases financed additional purchases of $24.7 million during the
fiscal year ended June 30, 2013, primarily for computers and software
for students.
Revenue and Enrollment Data
Revenue by Business Line
The following table sets forth revenue for the Company’s three lines of
business -- Managed Public Schools (turn-key management services
provided to public schools), Institutional Sales (educational products
and services provided to school districts, public schools and other
educational institutions that it does not manage), and International and
Private Pay Schools (private schools for which it charges student
tuition and makes direct consumer sales) -- for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30,
|
|
2013 / 2012
|
|
2012 / 2011
|
($ in thousands)
|
|
2013
|
|
2012
|
|
2011
|
|
Change
|
|
Change %
|
|
Change
|
|
Change %
|
Managed Public Schools
|
|
$
|
730,800
|
|
$
|
596,142
|
|
$
|
454,001
|
|
$
|
134,658
|
|
22.6
|
%
|
|
$
|
142,141
|
|
31.3
|
%
|
Institutional Business
|
|
|
73,269
|
|
|
73,150
|
|
|
46,756
|
|
|
119
|
|
0.2
|
%
|
|
|
26,394
|
|
56.5
|
%
|
International and Private Pay Business
|
|
|
44,151
|
|
|
39,115
|
|
|
21,677
|
|
|
5,036
|
|
12.9
|
%
|
|
|
17,438
|
|
80.4
|
%
|
Total
|
|
$
|
848,220
|
|
$
|
708,407
|
|
$
|
522,434
|
|
$
|
139,813
|
|
19.7
|
%
|
|
$
|
185,973
|
|
35.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enrollment Data
The following table sets forth average enrollment data for students in
Managed Public Schools and total enrollment data for students in the
International and Private Pay Schools for the periods indicated. These
figures exclude enrollments from classroom pilot programs and consumer
programs.
|
|
|
|
|
|
|
|
|
Year Ended June 30,
|
|
2013 / 2012
|
|
2012 / 2011
|
|
|
2013
|
|
2012
|
|
2011
|
|
Change
|
|
Change %
|
|
Change
|
|
Change %
|
Average Student Enrollments*
|
|
117,563
|
|
104,289
|
|
74,755
|
|
13,274
|
|
|
12.7
|
%
|
|
29,534
|
|
39.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30,
|
|
2013 / 2012
|
|
2012 / 2011
|
|
|
2013
|
|
2012
|
|
2011
|
|
Change
|
|
Change %
|
|
Change
|
|
Change %
|
Student Enrollments
|
|
31,619
|
|
31,830
|
|
28,777
|
|
(211
|
)
|
|
-0.7
|
%
|
|
3,053
|
|
10.6
|
%
|
Semester Course Enrollments
|
|
84,642
|
|
83,519
|
|
68,230
|
|
1,123
|
|
|
1.3
|
%
|
|
15,289
|
|
22.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The Managed Public Schools average student enrollments include
enrollments for which we received no public funding.
|
|
Fiscal Year 2014 Outlook
The Company intends to issue guidance for the current fiscal year in
mid-October 2013.
Special Note on Forward-Looking Statements
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. We
have tried, whenever possible, to identify these forward-looking
statements using words such as “anticipates,” “believes,” “estimates,”
“continues,” “likely,” “may,” “opportunity,” “potential,” “projects,”
“will,” “expects,” “plans,” “intends” and similar expressions to
identify forward looking statements, whether in the negative or the
affirmative. These statements reflect our current beliefs and are based
upon information currently available to us. Accordingly, such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which could cause our actual results,
performance or achievements to differ materially from those expressed
in, or implied by, such statements. These risks, uncertainties, factors
and contingencies include, but are not limited to: our potential
inability to further develop, maintain and enhance our products and
brands; the reduction of per pupil funding amounts at the schools we
serve; reputation harm resulting from poor performance or misconduct by
operators in any school in our industry and in any school in which we
operate; challenges from virtual public school or hybrid school
opponents; failure of the schools we serve to comply with regulations
resulting in a loss of funding or an obligation to repay funds
previously received; 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 enter into new contracts or renew existing contracts
with schools; risks associated with entering into and executing mergers,
acquisitions and joint ventures; failure to successfully integrate
mergers, acquisitions and joint ventures; inability to recruit, train
and retain quality teachers and employees; uncertainty regarding our
ability to protect our proprietary technologies; risks of new, changing
and competitive technologies; increased competition in our industry; 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
August 29, 2013, 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.
Conference Call
The Company will discuss its fourth quarter 2013 financial results
during a conference call scheduled for Thursday, August 29, 2013 at 8:30
a.m. eastern time (ET).
The conference call will be webcast and available on the K12
web site at www.k12.com
through the Investor Relations link. Please access the web site at least
15 minutes prior to the start of the call to register and download and
install any necessary software.
To participate in the live call, investors and analysts should dial
(866) 825-1709 (domestic) or (617) 213-8060 at 8:20 a.m. (ET). The
participant pass code is 82179632. A replay of the call will be
available starting on August 29, 2013, through September 5, 2013, at
(888) 286-8010 (domestic) or (617) 801-6888 (international) pass code
35861153. It will also be archived at www.k12.com
in the Investor Relations section for 60 days.
Financial Statements
The financial statements set forth below are not the complete set of K12
Inc.’s financial statements for the quarter and year and are presented
below without footnotes. Readers are encouraged to obtain and carefully
review K12 Inc.’s Annual Report on Form 10-K for the year ended June 30,
2013, including all financial statements contained therein and the
footnotes thereto, filed with the SEC. The Form 10-K may be retrieved
from the SEC's website at www.sec.gov
or from K12 Inc.’s website at www.k12.com.
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|
|
K12 INC.
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
(In thousands, except share and per share data)
|
ASSETS
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
181,480
|
|
|
$
|
144,652
|
|
Restricted cash and cash equivalents
|
|
|
-
|
|
|
|
1,501
|
|
Accounts receivable, net of allowance of $2,560 and $1,624 at June
30, 2013 and June 30, 2012, respectively
|
|
|
186,459
|
|
|
|
160,922
|
|
Inventories, net
|
|
|
44,395
|
|
|
|
37,853
|
|
Current portion of deferred tax asset
|
|
|
11,368
|
|
|
|
16,140
|
|
Prepaid expenses
|
|
|
10,331
|
|
|
|
11,173
|
|
Other current assets
|
|
|
23,916
|
|
|
|
14,598
|
|
Total current assets
|
|
|
457,949
|
|
|
|
386,839
|
|
Property and equipment, net
|
|
|
56,142
|
|
|
|
55,903
|
|
Capitalized software, net
|
|
|
43,504
|
|
|
|
34,709
|
|
Capitalized curriculum development costs, net
|
|
|
64,599
|
|
|
|
60,345
|
|
Intangible assets, net
|
|
|
32,139
|
|
|
|
36,736
|
|
Goodwill
|
|
|
61,413
|
|
|
|
61,619
|
|
Investment in Web International
|
|
|
-
|
|
|
|
10,000
|
|
Deposits and other assets
|
|
|
3,150
|
|
|
|
2,684
|
|
Total assets
|
|
$
|
718,896
|
|
|
$
|
648,835
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable
|
|
$
|
21,838
|
|
|
$
|
23,951
|
|
Accrued liabilities
|
|
|
17,027
|
|
|
|
13,802
|
|
Accrued compensation and benefits
|
|
|
21,970
|
|
|
|
17,355
|
|
Deferred revenue
|
|
|
28,567
|
|
|
|
25,410
|
|
Current portion of capital lease obligations
|
|
|
19,395
|
|
|
|
15,950
|
|
Current portion of note payable
|
|
|
390
|
|
|
|
1,145
|
|
Total current liabilities
|
|
|
109,187
|
|
|
|
97,613
|
|
Deferred rent, net of current portion
|
|
|
8,833
|
|
|
|
6,974
|
|
Capital lease obligations, net of current portion
|
|
|
16,107
|
|
|
|
15,124
|
|
Note payable, net of current portion
|
|
|
-
|
|
|
|
777
|
|
Deferred tax liability
|
|
|
33,299
|
|
|
|
31,591
|
|
Other long term liabilities
|
|
|
2,512
|
|
|
|
1,908
|
|
Total liabilities
|
|
|
169,938
|
|
|
|
153,987
|
|
Commitments and contingencies
|
|
|
-
|
|
|
|
-
|
|
Redeemable noncontrolling interest
|
|
|
15,200
|
|
|
|
17,200
|
|
Equity:
|
|
|
|
|
K12 Inc. stockholders’ equity
|
|
|
|
|
Common stock, par value $0.0001; 100,000,000 shares authorized;
37,440,662 and 36,436,933 shares issued and outstanding at June
30, 2013 and June 30, 2012, respectively
|
|
|
4
|
|
|
|
4
|
|
Additional paid-in capital
|
|
|
548,390
|
|
|
|
519,439
|
|
Series A Special Stock, par value $0.0001; 2,750,000 shares issued
and outstanding at June 30, 2013 and 2012
|
|
|
63,112
|
|
|
|
63,112
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
(294
|
)
|
|
|
100
|
|
Accumulated deficit
|
|
|
(81,050
|
)
|
|
|
(109,161
|
)
|
Total K12 Inc. stockholders’ equity
|
|
|
530,162
|
|
|
|
473,494
|
|
Noncontrolling interest
|
|
|
3,596
|
|
|
|
4,154
|
|
Total equity
|
|
|
533,758
|
|
|
|
477,648
|
|
Total liabilities, redeemable noncontrolling interest and equity
|
|
$
|
718,896
|
|
|
$
|
648,835
|
|
|
K12 INC.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Year Ended June 30,
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
(In thousands, except share and per share data)
|
Revenues
|
|
$
|
203,087
|
|
|
$
|
170,402
|
|
|
$
|
848,220
|
|
|
$
|
708,407
|
|
Cost and expenses
|
|
|
|
|
|
|
|
|
Instructional costs and services
|
|
|
129,192
|
|
|
|
102,617
|
|
|
|
498,398
|
|
|
|
408,560
|
|
Selling, administrative and other operating expenses
|
|
|
66,206
|
|
|
|
60,970
|
|
|
|
283,032
|
|
|
|
245,274
|
|
Product development expenses
|
|
|
6,268
|
|
|
|
4,783
|
|
|
|
21,084
|
|
|
|
25,593
|
|
Total costs and expenses
|
|
|
201,666
|
|
|
|
168,370
|
|
|
|
802,514
|
|
|
|
679,427
|
|
Income from operations
|
|
|
1,421
|
|
|
|
2,032
|
|
|
|
45,706
|
|
|
|
28,980
|
|
Interest income (expense), net
|
|
|
1,657
|
|
|
|
(267
|
)
|
|
|
851
|
|
|
|
(989
|
)
|
Income before income tax expense and noncontrolling interest
|
|
|
3,078
|
|
|
|
1,765
|
|
|
|
46,557
|
|
|
|
27,991
|
|
Income tax expense
|
|
|
(1,828
|
)
|
|
|
(571
|
)
|
|
|
(20,023
|
)
|
|
|
(11,882
|
)
|
Net income
|
|
|
1,250
|
|
|
|
1,194
|
|
|
|
26,534
|
|
|
|
16,109
|
|
Add net loss attributable to noncontrolling interest
|
|
|
1,018
|
|
|
|
607
|
|
|
|
1,577
|
|
|
|
1,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common stockholders, including Series
A stockholders
|
|
$
|
2,268
|
|
|
$
|
1,801
|
|
|
$
|
28,111
|
|
|
$
|
17,543
|
|
|
|
|
|
|
Net income attributable to common stockholders per share,
excluding Series A stockholders:
|
|
|
|
|
Basic
|
|
$
|
0.06
|
|
|
$
|
0.05
|
|
|
$
|
0.72
|
|
|
$
|
0.46
|
|
Diluted
|
|
$
|
0.06
|
|
|
$
|
0.05
|
|
|
$
|
0.72
|
|
|
$
|
0.45
|
|
Weighted average shares used in computing per share amounts:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
36,642,685
|
|
|
|
35,952,162
|
|
|
|
36,267,345
|
|
|
|
35,802,678
|
|
Diluted
|
|
|
39,475,382
|
|
|
|
38,723,316
|
|
|
|
39,017,345
|
|
|
|
38,740,863
|
|
|
|
|
|
|
K12 INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
Year Ended June 30,
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
(In thousands)
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net income
|
|
$
|
26,534
|
|
|
$
|
16,109
|
|
|
$
|
11,665
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization expense
|
|
|
65,737
|
|
|
|
58,033
|
|
|
|
42,934
|
|
Stock based compensation expense
|
|
|
14,374
|
|
|
|
10,067
|
|
|
|
9,466
|
|
Excess tax (benefit) expense from stock based compensation
|
|
|
(8,889
|
)
|
|
|
3,122
|
|
|
|
(4,954
|
)
|
Deferred income taxes
|
|
|
15,770
|
|
|
|
10,297
|
|
|
|
10,978
|
|
Provision for doubtful accounts
|
|
|
2,070
|
|
|
|
204
|
|
|
|
1,472
|
|
Provision for inventory obsolescence
|
|
|
387
|
|
|
|
1,618
|
|
|
|
1,060
|
|
Provision for student computer shrinkage and obsolescence
|
|
|
482
|
|
|
|
1,038
|
|
|
|
219
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(27,708
|
)
|
|
|
(64,270
|
)
|
|
|
(15,810
|
)
|
Inventories
|
|
|
(6,929
|
)
|
|
|
(8,918
|
)
|
|
|
(4,621
|
)
|
Prepaid expenses
|
|
|
843
|
|
|
|
(784
|
)
|
|
|
363
|
|
Other current assets
|
|
|
682
|
|
|
|
(5,260
|
)
|
|
|
(1,825
|
)
|
Deposits and other assets
|
|
|
(466
|
)
|
|
|
764
|
|
|
|
(1,037
|
)
|
Accounts payable
|
|
|
(2,115
|
)
|
|
|
2,794
|
|
|
|
2,726
|
|
Accrued liabilities
|
|
|
3,226
|
|
|
|
(292
|
)
|
|
|
615
|
|
Accrued compensation and benefits
|
|
|
4,616
|
|
|
|
4,275
|
|
|
|
1,976
|
|
Deferred revenue
|
|
|
3,119
|
|
|
|
3,351
|
|
|
|
6,760
|
|
Restricted cash
|
|
|
1,501
|
|
|
|
-
|
|
|
|
1,842
|
|
Deferred rent and other liabilities
|
|
|
2,059
|
|
|
|
843
|
|
|
|
3,384
|
|
Net cash provided by operating activities
|
|
|
95,293
|
|
|
|
32,991
|
|
|
|
67,213
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(8,339
|
)
|
|
|
(10,483
|
)
|
|
|
(19,616
|
)
|
Capitalized software development costs
|
|
|
(23,446
|
)
|
|
|
(21,994
|
)
|
|
|
(9,947
|
)
|
Capitalized curriculum development costs
|
|
|
(18,560
|
)
|
|
|
(16,123
|
)
|
|
|
(18,086
|
)
|
Purchase of Kaplan
|
|
|
-
|
|
|
|
(12,641
|
)
|
|
|
-
|
|
Purchase of AEC, net of cash acquired of $3,841
|
|
|
-
|
|
|
|
-
|
|
|
|
(24,543
|
)
|
Purchase of IS Berne, net of cash acquired of $1,563
|
|
|
-
|
|
|
|
-
|
|
|
|
(839
|
)
|
Cash advanced for AEC performance escrow
|
|
|
-
|
|
|
|
-
|
|
|
|
(6,825
|
)
|
Cash returned for AEC performance escrow
|
|
|
-
|
|
|
|
-
|
|
|
|
6,825
|
|
Cash paid for investment in Web
|
|
|
-
|
|
|
|
-
|
|
|
|
(10,000
|
)
|
Net cash used in investing activities
|
|
|
(50,345
|
)
|
|
|
(61,241
|
)
|
|
|
(83,031
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
-
|
|
|
|
-
|
|
|
|
125,619
|
|
Repayments on capital lease obligations
|
|
|
(20,275
|
)
|
|
|
(16,600
|
)
|
|
|
(15,135
|
)
|
Repayments on notes payable
|
|
|
(1,533
|
)
|
|
|
(1,820
|
)
|
|
|
(1,969
|
)
|
Proceeds from notes payable
|
|
|
-
|
|
|
|
-
|
|
|
|
1,932
|
|
Borrowings from line of credit
|
|
|
-
|
|
|
|
-
|
|
|
|
15,000
|
|
Repayments under the line of credit
|
|
|
-
|
|
|
|
-
|
|
|
|
(15,000
|
)
|
Proceeds from exercise of stock options
|
|
|
7,253
|
|
|
|
3,380
|
|
|
|
13,364
|
|
Payment of stock registration expense
|
|
|
-
|
|
|
|
(313
|
)
|
|
|
-
|
|
Excess tax (benefit) expense from stock based compensation
|
|
|
8,889
|
|
|
|
(3,122
|
)
|
|
|
4,954
|
|
Repurchase of restricted stock for income tax withholding
|
|
|
(2,546
|
)
|
|
|
(1,292
|
)
|
|
|
(1,627
|
)
|
Net cash provided by (used in) financing activities
|
|
|
(8,212
|
)
|
|
|
(19,767
|
)
|
|
|
127,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign exchange rate changes on cash and cash
equivalents
|
|
|
92
|
|
|
|
(430
|
)
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
36,828
|
|
|
|
(48,447
|
)
|
|
|
111,348
|
|
Cash and cash equivalents, beginning of year
|
|
|
144,652
|
|
|
|
193,099
|
|
|
|
81,751
|
|
Cash and cash equivalents, end of year
|
|
$
|
181,480
|
|
|
$
|
144,652
|
|
|
$
|
193,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
EBITDA
EBITDA consists of net income (loss), plus net interest expense, plus
income tax expense, minus income tax benefit, plus depreciation and
amortization and noncontrolling interest charges. Interest expense
primarily consists of interest expense for capital leases and long-term
and short-term borrowings. We use EBITDA in addition to income from
operations and net income as a measure of operating performance.
However, EBITDA is not a recognized measurement under U.S. generally
accepted accounting principles, or GAAP, and when analyzing our
operating performance, investors should use EBITDA in addition to, and
not as an alternative for, net income (loss) as determined in accordance
with GAAP. Because not all companies use identical calculations, our
presentation of EBITDA may not be comparable to similarly titled
measures of other companies. Furthermore, EBITDA is not intended to be a
measure of free cash flow for our management's discretionary use, as it
does not consider certain cash requirements such as capital
expenditures, tax payments, interest payments, or other working capital.
We believe EBITDA is useful to an investor in evaluating our operating
performance because it is widely used to measure a company's operating
performance without regard to items such as depreciation and
amortization, which can vary depending upon accounting methods and the
book value of assets, and to present a meaningful measure of corporate
performance exclusive of our capital structure and the method by which
assets were acquired. Our management uses EBITDA:
-
as an additional measurement of operating performance because it
assists us in comparing our performance on a consistent basis;
-
in presentations to the members of our Board of Directors to enable
our Board to have the same measurement basis of operating performance
as is used by management to compare our current operating results with
corresponding prior periods and with the results of other companies in
our industry; and
-
on an adjusted basis in determining compliance with the terms of our
credit agreement.
The following tables provide a reconciliation of net income to EBITDA.
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Year Ended June 30,
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
Net income
|
|
$
|
2,268
|
|
|
$
|
1,801
|
|
|
$
|
28,111
|
|
|
$
|
17,543
|
|
Interest expense, net
|
|
|
(1,657
|
)
|
|
|
267
|
|
|
|
(851
|
)
|
|
|
989
|
|
Income tax expense
|
|
|
1,828
|
|
|
|
571
|
|
|
|
20,023
|
|
|
|
11,882
|
|
Depreciation and amortization
|
|
|
17,562
|
|
|
|
15,708
|
|
|
|
65,737
|
|
|
|
58,033
|
|
Noncontrolling interest
|
|
|
(1,018
|
)
|
|
|
(607
|
)
|
|
|
(1,577
|
)
|
|
|
(1,434
|
)
|
EBITDA
|
|
$
|
18,983
|
|
|
$
|
17,740
|
|
|
$
|
111,443
|
|
|
$
|
87,013
|
|
|
|
|
|
|
|
|
|
|
About K12 Inc.
K12 Inc. (NYSE: LRN)
is leading the transformation to individualized learning as the nation's
foremost provider of technology-powered online solutions for students in
pre-kindergarten through high school. K12 has worked with over 2,000
school districts and has delivered more than four million courses over
the past decade. K12 provides curricula, academic services, and learning
solutions to public schools and districts, traditional classrooms,
blended school programs, and families. K12's curriculum is rooted in
decades of research combined with 21st-century technology by cognitive
scientists, interactive designers and teachers. K12's portfolio of more
than 550 unique courses and titles—the most extensive in the
technology-based education industry—covers every core subject and four
academic levels for high school including Honors and AP. K12 offers
credit recovery courses, career-building electives, remediation support,
six world languages and a deep STEM offering. The K12 program
is offered through K12 partner public schools in more
than two-thirds of the states and the District of Columbia, and through
private schools serving students in all 50 states and more than 100
countries. More information can be found at K12.com.

Source: K12 Inc.
K12 Inc.
Investor Contact:
Christina L. Parker,
703-483-7077
VP Investor Relations
chparker@k12.com
or
Press
Contact:
Jeff Kwitowski, 703-483-7281
SVP Corporate
Communications
jkwitowski@k12.com