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K12 Inc. – LRN – Q1 Revenues Increase 14.4 percent to $221.1 million

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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, announced its results for the first fiscal quarter ended September 30, 2012.

LRN – Financial Results for Q1 Fiscal 2013

  • Revenues for first quarter FY 2013 grew to $221.1 million, an increase of $27.8 million, or 14.4 percent, over the prior year.
  • EBITDA for Q1 FY 2013 (see GAAP reconciliation below) was $24.3 million, an increase of $3.0 million, or 14.1 percent, as compared to $21.3 million for the prior year.
  • Operating income was $8.7 million, an increase of $0.4 million, or 4.8 percent, as compared to $8.3 million for the prior year.
  • Net income to common and Series A stockholders was $4.4 million as compared to $4.6 million in the prior year, a decrease of 4.3 percent.
  • Diluted earnings per share were $0.11 as compared to $0.12 in the prior year.

LRN – K12 Continues to Lead Technology-Driven Transformation to Individualized Education

Ron Packard, Chief Executive Officer of K12 Inc., commented: “K12 continues to lead the technology-driven transformation of education to individualized, child-driven learning. This quarter was in line with our expectations and puts us on track to make our annual guidance. Our core virtual Managed Public School business remains strong and is growing at a healthy rate.”

Continued Mr. Packard, “We are working hard and making substantial investments to recruit and train the force of 21st century teachers and develop the products, processes and operational infrastructure to meet the needs of a growing and increasingly diverse student base, as our average student enrollments in Managed Public Schools grew to 121,665 in the first quarter of fiscal 2013 from 106,665 in the same period in the prior year, an increase of over 14 percent.”

“Looking ahead to the balance of fiscal 2013, we are pleased to re-confirm our annual guidance on the basis of this solid quarter,” Mr. Packard concluded.

Financial Results for the Three Months ended September 30, 2012 (First Quarter Fiscal Year 2013)

Revenues for the first quarter of FY 2013 were $221.1 million, an increase of $27.8 million, or 14.4 percent, over the prior year period. This increase was primarily due to solid organic revenue growth in our core business of providing curriculum, technology and academic services to K-12 managed public schools, partially offset by a decline in Institutional Business revenue, primarily as a result of the perpetual license revenue in the prior year period.

Instructional costs and services expenses for the first quarter of FY 2013 were $118.6 million, representing an increase of $17.5 million, or 17.3 percent, from $101.1 million for the prior year period. The increase as percentage of revenue was associated primarily with advance hiring during the first quarter of fiscal 2013.

About K12 Inc. – LRN

K12 Inc. (LRN), a technology-based education company, is the nation’s largest provider of proprietary curriculum and online education programs for students in kindergarten through high school. Using 21st century tools to prepare 21st century students, K12 provides a new choice for students to learn in a flexible and innovative way, at an individualized pace. K12 provides curriculums and academic services to public and private online schools and districts, traditional classrooms, blended school programs and directly to families. K12 is accredited through AdvancED, the world’s largest education community.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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