HERNDON, Va.--(BUSINESS WIRE)--Jan. 25, 2018--
K12 Inc. (NYSE: LRN), a technology-based education company and leading
provider of online curriculum and online school programs for students in
pre-K through high school, today announced its results for the second
fiscal quarter ended December 31, 2017.
Financial Highlights for the Three Months Ended December 31, 2017
(Second Quarter Fiscal Year 2018)
-
Revenues of $217.2 million, compared to $221.1 million in the second
quarter of FY 2017.
-
Operating income of $13.7 million, compared to $18.3 million in the
second quarter of FY 2017.
-
Net income attributable to common stockholders of $13.3 million,
compared to $11.7 million in the second quarter of FY 2017.
-
Diluted net income attributable to common stockholders per share of
$0.33, compared to $0.30 in the second quarter of FY 2017.
To supplement our financial statements presented in accordance with
Generally Accepted Accounting Principles (GAAP), we are also presenting
adjusted operating income and adjusted EBITDA. Management believes that
these additional metrics provide useful information to our investors as
an indicator of performance because they exclude non-cash stock-based
compensation expense. Non-GAAP Financial Highlights for the three months
ended December 31, 2017 (Second Quarter Fiscal Year 2018) are as follows.
-
Adjusted operating income of $20.9 million, compared to $22.9 million
in the second quarter of FY 2017.
-
Adjusted EBITDA of $39.5 million, compared to $41.6 million in the
second quarter of FY 2017.
Financial Highlights for the Six Months Ended December 31, 2017
(Year-to-Date Fiscal 2018)
-
Revenues of $446.0 million, compared to $450.2 million for the first
six months of FY 2017.
-
Operating loss of $4.0 million, compared to a loss of $4.3 million for
the first six months of FY 2017.
-
Net income attributable to common stockholders of $5.2 million,
compared to a loss of $2.2 million for the first six months of FY 2017.
-
Diluted net income attributable to common stockholders per share of
$0.13, compared to a loss of $0.06 for the first six months of FY 2017.
Non-GAAP Financial Highlights for the Six Months Ended December 31, 2017
(Year-to-Date Fiscal 2018) are as follows.
-
Adjusted operating income of $6.2 million, compared to $4.9 million
for the first six months of FY 2017.
-
Adjusted EBITDA of $45.4 million, compared to $41.3 million for the
first six months of FY 2017.
A reconciliation of these non-GAAP financial measures to the most
directly comparable GAAP financial measures for these periods is
provided below.
Liquidity
As of December 31, 2017, the Company had cash and cash equivalents of
$189.5 million, a decrease of $41.4 million compared to the $230.9
million reported at June 30, 2017. On a year over year basis, cash and
cash equivalents increased $7.4 million.
Comments from Management
“K12 remains focused on the long-term success of our business,” said
Stuart Udell, Chief Executive Officer. “We are excited by the
opportunities we see in expanding school choice options, broadening
career and technical education offerings to build a workforce proficient
in high skilled jobs, and developing a next-generation curriculum that
delivers a high-quality, personalized learning experience for all of the
students we serve.”
Capital Expenditures
Capital expenditures for the six months ended December 31, 2017 were
$23.8 million, a decrease of $0.1 million from the prior year’s first
six months, and was comprised of:
-
$5.9 million for property and equipment,
-
$13.4 million for capitalized software development, and
-
$4.5 million for capitalized curriculum.
Revenue and Enrollment Data
Revenue
The Company’s revenues are generally in three categories -- Managed
Public School Programs (where K12 provides substantially all management,
technology and academic support services in addition to curriculum,
learning systems and instructional services), Institutional (Non-managed
Public School Programs – curriculum, technology and other educational
services where K12 does not provide primary administrative oversight,
and Institutional Software and Services – educational software and
services provided to school districts, public schools and other
educational institutions), and Private Pay Schools and Other (private
schools for which it charges student tuition and makes direct consumer
sales) – The following table sets forth the Company’s revenues for the
periods indicated:
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Three Months Ended December 31,
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Change 2017 / 2016
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Six Months Ended December 31,
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Change 2017 / 2016
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2017
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2016
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$
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|
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%
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2017
|
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2016
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$
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%
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(In thousands, except percentages)
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Managed Public School Programs
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$
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183,392
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$
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182,396
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$
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996
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0.5
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%
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$
|
371,898
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$
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366,935
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$
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4,963
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1.4
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%
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Institutional
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Non-managed Public School Programs
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13,991
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17,634
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(3,643
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)
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-20.7
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%
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31,150
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35,929
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(4,779
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)
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-13.3
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%
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Institutional Software & Services
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11,437
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12,770
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(1,333
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)
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-10.4
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%
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24,895
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28,733
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(3,838
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)
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-13.4
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%
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Total Institutional
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25,428
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30,404
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(4,976
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)
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-16.4
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%
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56,045
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64,662
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(8,617
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)
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-13.3
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%
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Private Pay Schools and Other
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8,391
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8,290
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101
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1.2
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%
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18,053
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18,631
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(578
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)
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-3.1
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%
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Total
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|
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$
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217,211
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$
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221,090
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$
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(3,879
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)
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-1.8
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%
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$
|
445,996
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$
|
450,228
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$
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(4,232
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)
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-0.9
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%
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Enrollment Data
The following table sets forth average enrollment data for the periods
indicated. These figures exclude enrollments from classroom pilot
programs and consumer programs.
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Three Months Ended December 31,
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2017 / 2016
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Six Months Ended December 31,
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2017 / 2016
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(in thousands)
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|
|
2017
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|
2016
|
|
Change
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Change
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%
|
|
2017
|
|
2016
|
|
Change
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|
Change
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%
|
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|
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|
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Managed Public School Programs (1,2)
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108.5
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106.2
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|
2.3
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2.2
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%
|
|
109.1
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106.8
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2.3
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2.2
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%
|
Non-managed Public School Programs (1)
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23.9
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28.7
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(4.8
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)
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-16.7
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%
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|
23.9
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|
28.5
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|
(4.6
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)
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-16.1
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%
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(1)
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If a school changes from a Managed Public School Program to a
Non-managed Public School Program, the corresponding enrollment
classification would change in the period in which the contract
arrangement changed.
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(2)
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Managed Public School Programs may include enrollments for which K12
receives no public funding or revenue.
|
Revenue per Enrollment Data
The following table sets forth revenue per average enrollment data for
students in Public School Programs for the periods indicated.
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Three Months Ended
|
|
Change
|
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Six Months Ended
|
|
|
Change
|
|
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|
|
December 31,
|
|
2017 / 2016
|
|
December 31,
|
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2017 / 2016
|
|
|
|
|
|
2017
|
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|
2016
|
|
|
$
|
|
|
%
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
$
|
|
|
%
|
|
Managed Public School Programs
|
|
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|
$
|
1,690
|
|
$
|
1,717
|
|
$
|
(27
|
)
|
|
-1.6
|
%
|
|
$
|
3,409
|
|
|
$
|
3,436
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|
|
$
|
(27
|
)
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-0.8
|
%
|
Non-managed Public School Programs
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|
|
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|
585
|
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|
614
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|
(29
|
)
|
|
-4.7
|
%
|
|
|
1,303
|
|
|
|
1,261
|
|
|
|
42
|
|
|
3.3
|
%
|
Outlook
The Company is forecasting the following for the third quarter, fiscal
2018:
-
Revenue in the range of $224 million to $230 million.
-
Adjusted operating income of $25 million to $27 million.
-
Capital expenditures of $9 million to $11 million.
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: reduction of per
pupil funding amounts at the schools we serve; inability to achieve
sufficient levels of new enrollments to sustain or to grow our business
model; failure of the schools we serve to comply with regulations
resulting in a loss of funding, an obligation to repay funds previously
received or contractual remedies; declines or variations in academic
performance outcomes as curriculum and testing standards evolve; harm to
our reputation resulting from poor performance or misconduct by
operators or us in any school in our industry and in any school in which
we operate; legal and regulatory challenges from opponents of virtual
public education, public charter schools or for-profit education
companies; 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 school contracts or renew existing contracts, in part
or in their entirety; unsuccessful integration of mergers, acquisitions
and joint ventures; failure to further develop, maintain and enhance our
technology, products, services and brands; inadequate recruiting,
training and retention of effective teachers and employees; declines in
enrollments due to teacher union activities; infringement of our
intellectual property; entry of new competitors with superior
competitive technologies and lower prices; disruptions to our
Internet-based learning and delivery systems resulting from
cyber-attacks; 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 December 31, 2017, 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 second quarter fiscal year 2018 financial
results during a conference call scheduled for Thursday, January 25,
2018 at 5:00 p.m. eastern time (ET).
The conference call will be webcast and available at http://public.viavid.com/index.php?id=127879.
Please access the web site at least 15 minutes prior to the start of the
call.
To participate in the live call, investors and analysts should dial
(877) 407-4019 (domestic) or (201) 689-8337 (international) at 4:45 p.m.
(ET). No passcode is required.
A replay of the call will be available starting on January 25, 2018 at
8:00 p.m. ET through February 25, 2018 at 8:00 p.m. ET, at (877)
660-6853 (domestic) or (201) 612-7415 (international) using conference
ID 13675234. A webcast replay of the call will be available at http://public.viavid.com/index.php?id=127879
for 30 days.
Financial Statements
The financial statements set forth below are not the complete set of K12
Inc.’s financial statements for the three and six months ended December
31, 2017, and are presented below without footnotes. Readers are
encouraged to obtain and carefully review K12 Inc.’s Form 10-Q for the
quarter ended December 31, 2017, including all financial statements
contained therein and the footnotes thereto, filed with the SEC. The
Form 10-Q 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.
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
June 30,
|
|
|
|
|
|
2017
|
|
|
|
2017
|
|
|
|
|
|
|
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|
|
(audited)
|
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(In thousands except share and per share data)
|
ASSETS
|
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Current assets
|
|
|
|
|
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|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
189,502
|
|
|
|
$
|
230,864
|
|
Accounts receivable, net of allowance of $10,168 and $14,791 at
December 31, 2017 and June 30, 2017, respectively
|
|
|
|
|
|
244,124
|
|
|
|
|
192,205
|
|
Inventories, net
|
|
|
|
|
|
18,388
|
|
|
|
|
30,503
|
|
Prepaid expenses
|
|
|
|
|
|
21,988
|
|
|
|
|
8,006
|
|
Other current assets
|
|
|
|
|
|
14,753
|
|
|
|
|
12,004
|
|
Total current assets
|
|
|
|
|
|
488,755
|
|
|
|
|
473,582
|
|
Property and equipment, net
|
|
|
|
|
|
29,472
|
|
|
|
|
26,297
|
|
Capitalized software, net
|
|
|
|
|
|
57,904
|
|
|
|
|
62,695
|
|
Capitalized curriculum development costs, net
|
|
|
|
|
|
54,816
|
|
|
|
|
59,213
|
|
Intangible assets, net
|
|
|
|
|
|
19,449
|
|
|
|
|
20,226
|
|
Goodwill
|
|
|
|
|
|
90,197
|
|
|
|
|
87,214
|
|
Deposits and other assets
|
|
|
|
|
|
8,063
|
|
|
|
|
6,057
|
|
Total assets
|
|
|
|
|
$
|
748,656
|
|
|
|
$
|
735,284
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
Current portion of capital lease obligations
|
|
|
|
|
$
|
13,416
|
|
|
|
$
|
11,880
|
|
Accounts payable
|
|
|
|
|
|
17,162
|
|
|
|
|
30,052
|
|
Accrued liabilities
|
|
|
|
|
|
12,479
|
|
|
|
|
21,622
|
|
Accrued compensation and benefits
|
|
|
|
|
|
19,667
|
|
|
|
|
29,367
|
|
Deferred revenue
|
|
|
|
|
|
54,945
|
|
|
|
|
24,830
|
|
Total current liabilities
|
|
|
|
|
|
117,669
|
|
|
|
|
117,751
|
|
Capital lease obligations, net of current portion
|
|
|
|
|
|
13,931
|
|
|
|
|
10,025
|
|
Deferred rent, net of current portion
|
|
|
|
|
|
3,745
|
|
|
|
|
4,157
|
|
Deferred tax liability
|
|
|
|
|
|
16,023
|
|
|
|
|
16,726
|
|
Other long-term liabilities
|
|
|
|
|
|
10,946
|
|
|
|
|
11,579
|
|
Total liabilities
|
|
|
|
|
|
162,314
|
|
|
|
|
160,238
|
|
Redeemable noncontrolling interest
|
|
|
|
|
|
500
|
|
|
|
|
700
|
|
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
Common stock, par value $0.0001; 100,000,000 shares authorized;
44,898,430 and 44,325,772 shares issued and 41,395,832 and
40,823,174 shares outstanding at December 31, 2017 and June 30,
2017, respectively
|
|
|
|
|
4
|
|
|
|
|
4
|
|
Additional paid-in capital
|
|
|
|
|
|
697,044
|
|
|
|
|
690,488
|
|
Accumulated other comprehensive loss
|
|
|
|
|
|
(364
|
)
|
|
|
|
(170
|
)
|
Accumulated deficit
|
|
|
|
|
|
(35,842
|
)
|
|
|
|
(40,976
|
)
|
Treasury stock of 3,502,598 shares at cost at December 31, 2017 and
June 30, 2017
|
|
|
|
|
|
(75,000
|
)
|
|
|
|
(75,000
|
)
|
Total stockholders’ equity
|
|
|
|
|
|
585,842
|
|
|
|
|
574,346
|
|
Total liabilities, redeemable noncontrolling interest and
stockholders' equity
|
|
|
|
|
$
|
748,656
|
|
|
|
$
|
735,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
K12 INC.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Six Months Ended December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(In thousands except share and per share data)
|
Revenues
|
|
$
|
217,211
|
|
|
$
|
221,090
|
|
|
$
|
445,996
|
|
|
$
|
450,228
|
|
Cost and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Instructional costs and services
|
|
|
139,163
|
|
|
|
137,542
|
|
|
|
286,530
|
|
|
|
281,641
|
|
Selling, administrative, and other operating expenses
|
|
|
61,958
|
|
|
|
62,352
|
|
|
|
158,240
|
|
|
|
166,998
|
|
Product development expenses
|
|
|
2,376
|
|
|
|
2,873
|
|
|
|
5,274
|
|
|
|
5,935
|
|
Total costs and expenses
|
|
|
203,497
|
|
|
|
202,767
|
|
|
|
450,044
|
|
|
|
454,574
|
|
Income (loss) from operations
|
|
|
13,714
|
|
|
|
18,323
|
|
|
|
(4,048
|
)
|
|
|
(4,346
|
)
|
Interest income, net
|
|
|
39
|
|
|
|
264
|
|
|
|
274
|
|
|
|
606
|
|
Income (loss) before income taxes and noncontrolling interest
|
|
|
13,753
|
|
|
|
18,587
|
|
|
|
(3,774
|
)
|
|
|
(3,740
|
)
|
Income tax benefit (expense)
|
|
|
(564
|
)
|
|
|
(7,688
|
)
|
|
|
8,804
|
|
|
|
1,002
|
|
Net income (loss)
|
|
|
13,189
|
|
|
|
10,899
|
|
|
|
5,030
|
|
|
|
(2,738
|
)
|
Add net loss attributable to noncontrolling interest
|
|
|
70
|
|
|
|
753
|
|
|
|
173
|
|
|
|
557
|
|
Net income (loss) attributable to common stockholders
|
|
$
|
13,259
|
|
|
$
|
11,652
|
|
|
$
|
5,203
|
|
|
$
|
(2,181
|
)
|
Net income (loss) attributable to common stockholders per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.34
|
|
|
$
|
0.31
|
|
|
$
|
0.13
|
|
|
$
|
(0.06
|
)
|
Diluted
|
|
$
|
0.33
|
|
|
$
|
0.30
|
|
|
$
|
0.13
|
|
|
$
|
(0.06
|
)
|
Weighted average shares used in computing per share amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
39,347,244
|
|
|
|
38,104,909
|
|
|
|
39,227,708
|
|
|
|
38,021,807
|
|
Diluted
|
|
|
40,685,667
|
|
|
|
39,007,276
|
|
|
|
40,773,017
|
|
|
|
38,021,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
K12 INC.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
Six Months Ended December 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
(In thousands)
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
5,030
|
|
|
|
$
|
(2,738
|
)
|
Adjustments to reconcile net income (loss) to net cash provided
by (used in) operating activities:
|
|
|
|
Depreciation and amortization expense
|
|
|
|
|
39,186
|
|
|
|
|
36,375
|
|
Stock-based compensation expense
|
|
|
|
|
10,296
|
|
|
|
|
9,292
|
|
Excess tax benefit from stock-based compensation
|
|
|
|
|
—
|
|
|
|
|
(250
|
)
|
Deferred income taxes
|
|
|
|
|
(51
|
)
|
|
|
|
4,123
|
|
Provision for doubtful accounts
|
|
|
|
|
468
|
|
|
|
|
273
|
|
Provision for excess and obsolete inventory
|
|
|
|
|
959
|
|
|
|
|
497
|
|
Provision for student computer shrinkage and obsolescence
|
|
|
|
(5
|
)
|
|
|
|
265
|
|
Expensed computer peripherals
|
|
|
|
|
2,531
|
|
|
|
|
2,729
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(52,202
|
)
|
|
|
|
(49,449
|
)
|
Inventories
|
|
|
|
|
11,156
|
|
|
|
|
12,420
|
|
Prepaid expenses
|
|
|
|
|
(13,982
|
)
|
|
|
|
(8,172
|
)
|
Other current assets
|
|
|
|
|
(2,748
|
)
|
|
|
|
(1,330
|
)
|
Deposits and other assets
|
|
|
|
|
(2,185
|
)
|
|
|
|
5,653
|
|
Accounts payable
|
|
|
|
|
(9,106
|
)
|
|
|
|
(7,540
|
)
|
Accrued liabilities
|
|
|
|
|
(11,078
|
)
|
|
|
|
(13,191
|
)
|
Accrued compensation and benefits
|
|
|
|
|
(9,711
|
)
|
|
|
|
(10,151
|
)
|
Deferred revenue
|
|
|
|
|
29,755
|
|
|
|
|
33,261
|
|
Deferred rent and other liabilities
|
|
|
|
|
(1,050
|
)
|
|
|
|
(1,816
|
)
|
Net cash provided by (used in) operating activities
|
|
|
|
|
(2,737
|
)
|
|
|
|
10,251
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
|
|
(5,917
|
)
|
|
|
|
(1,276
|
)
|
Capitalized software development costs
|
|
|
|
|
(13,378
|
)
|
|
|
|
(13,446
|
)
|
Capitalized curriculum development costs
|
|
|
|
|
(4,474
|
)
|
|
|
|
(9,141
|
)
|
Acquisition of Big Universe, Inc., net of cash acquired
|
|
|
|
|
(2,170
|
)
|
|
|
|
—
|
|
Purchase of noncontrolling interest
|
|
|
|
|
—
|
|
|
|
|
(9,134
|
)
|
Net cash used in investing activities
|
|
|
|
|
(25,939
|
)
|
|
|
|
(32,997
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
Repayments on capital lease obligations
|
|
|
|
|
(6,987
|
)
|
|
|
|
(8,116
|
)
|
Proceeds from exercise of stock options
|
|
|
|
|
58
|
|
|
|
|
437
|
|
Excess tax benefit from stock-based compensation
|
|
|
|
|
—
|
|
|
|
|
250
|
|
Repurchase of restricted stock for income tax withholding
|
|
|
|
|
(5,757
|
)
|
|
|
|
(1,650
|
)
|
Net cash used in financing activities
|
|
|
|
|
(12,686
|
)
|
|
|
|
(9,079
|
)
|
Effect of foreign exchange rate changes on cash and cash
equivalents
|
|
|
|
—
|
|
|
|
|
(18
|
)
|
Net change in cash and cash equivalents
|
|
|
|
|
(41,362
|
)
|
|
|
|
(31,843
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
230,864
|
|
|
|
|
213,989
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
189,502
|
|
|
|
$
|
182,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with
Generally Accepted Accounting Principles (GAAP), we have presented
adjusted operating income (loss) and adjusted EBITDA. These measures are
not measurements recognized under GAAP.
-
Adjusted operating income (loss) is defined as income (loss) from
operations as adjusted for stock-based compensation.
-
Adjusted EBITDA is defined as net income (loss) attributable to common
stockholders as adjusted for interest income (expense), net;
impairment of investment in Web International Education Group, Ltd.;
income tax benefit (expense); noncontrolling interest; stock-based
compensation; and depreciation and amortization. Interest income
(expense) primarily consists primarily of interest expense for capital
leases and interest income on customer receivables.
-
Adjusted EBITDA and adjusted operating income (loss) exclude
stock-based compensation, which consists of expenses for stock
options, restricted stock, restricted stock units, and performance
stock units.
This information should be considered as supplemental in nature and
should not be considered in isolation or as a substitute for the related
financial information prepared in accordance with GAAP. Management
believes that the presentation of these non-GAAP measures provides
useful information to investors regarding our results of operations
because it is an indicator of performance with the removal of
stock-based compensation which assists both investors and management in
analyzing and benchmarking the performance and value of our business.
We believe adjusted EBITDA is useful to an investor in evaluating our
operating performance because it is both 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 adjusted EBITDA and adjusted operating income (loss):
-
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
-
as consistent with lending covenants on our line of credit.
Other companies may define these non-GAAP measures differently and, as a
result, our use of these non-GAAP measures may not be directly
comparable to adjusted EBITDA, and adjusted operating income (loss) used
by other companies. Although we use these non-GAAP measures as financial
measures to assess the performance of our business, the use of non-GAAP
measures is limited as they include and/or do not include certain items
not included and/or included in the most directly comparable GAAP
measure.
Adjusted EBITDA and adjusted operating income (loss) should be
considered in addition to, and not as a substitute for, income or loss
from operations, net income or loss, and earnings or loss per share
prepared in accordance with GAAP as a measure of performance. Adjusted
EBITDA is not intended to be a measure of liquidity. You are cautioned
not to place undue reliance on these non-GAAP measures.
A reconciliation of these non-GAAP financial measures to the most
directly comparable GAAP financial measures is provided below.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Six Months Ended December 31,
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to common stockholders
|
|
|
|
$
|
13,259
|
|
|
|
$
|
11,652
|
|
|
|
$
|
5,203
|
|
|
|
$
|
(2,181
|
)
|
Interest income, net
|
|
|
|
|
(39
|
)
|
|
|
|
(264
|
)
|
|
|
|
(274
|
)
|
|
|
|
(606
|
)
|
Income tax (benefit) expense
|
|
|
|
|
564
|
|
|
|
|
7,688
|
|
|
|
|
(8,804
|
)
|
|
|
|
(1,002
|
)
|
Noncontrolling interest
|
|
|
|
|
(70
|
)
|
|
|
|
(753
|
)
|
|
|
|
(173
|
)
|
|
|
|
(557
|
)
|
Stock-based compensation expense
|
|
|
|
|
7,217
|
|
|
|
|
4,598
|
|
|
|
|
10,296
|
|
|
|
|
9,292
|
|
Adjusted operating income
|
|
|
|
|
20,931
|
|
|
|
|
22,921
|
|
|
|
|
6,248
|
|
|
|
|
4,946
|
|
Depreciation and amortization
|
|
|
|
|
18,550
|
|
|
|
|
18,695
|
|
|
|
|
39,186
|
|
|
|
|
36,375
|
|
Adjusted EBITDA
|
|
|
|
$
|
39,481
|
|
|
|
$
|
41,616
|
|
|
|
$
|
45,434
|
|
|
|
$
|
41,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About K12 Inc.
K12 Inc. (NYSE: LRN) is driving innovation and advancing the quality of
education by delivering state-of-the-art, digital learning platforms and
technology to students and school districts across the globe. K12’s
award winning curriculum serves over 2,000 schools and school districts
and has delivered millions of courses over the past decade. K12 is a
company of educators providing online and blended education solutions to
charter schools, public school districts, private schools, and directly
to families. The K12 program is offered through more than 70 partner
public schools, and through school districts and public and private
schools serving students in all 50 states and more than 100 countries.
More information can be found at K12.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180125005073/en/
Source: K12 Inc.
K12 Inc.
Investor and Press Contact:
Mike Kraft,
571-353-7778
VP Finance and Communications
mkraft@k12.com