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 Edison Schools Says Share Repurchases To Continue; It Has Currently Purchased Approximately 180,000 Shares of 5,400,000 Authorized Under Repurchase Pr Wednesday, December 04, 2002 "The company recently increased its guidance on EBITDA by 30%, net of stock based compensation expense, to at least $26 million for the fiscal year ending June 2003, said Chip Delaney, the companys Vice Chairman. This means our current market cap is approximately 3X EBITDA (for the fiscal year ending June 30th 2003) and at about 40% of our current book value. In addition, present Enterprise Value divided by projected EBITDA for the fiscal year ending June 30th 2003 is approximately 6X (with net debt being approximately 3X projected EBITDA.) We believe these measures, coupled with our confidence in future performance, represent a compelling long-term investment. Purchases under Edisons share repurchase program may be made from time to time in the open market or in privately negotiated transactions, consistent with applicable regulatory and contractual requirements and, depending on market conditions and other factors, may be commenced, suspended, or discontinued at any time or from time to time without prior notice. Before the commencement of the share repurchase program, the company had approximately 54,000,000 shares outstanding. The company had approximately $30 million of cash on its balance sheet at the end of September, 2002. A substantial portion of this cash has been expended to open new schools and to meet operating expenses. Management believes that this cash together with proceeds from planned refinancings of its charter notes and with continued collections of receivables from its clients will be sufficient to fund this repurchase plan while meeting all of the companys obligations.
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