Edison Schools Receives NASDAQ Listing Approval Based on Share Price Gains Wednesday, November 27, 2002 We were optimistic that this would be the case, given the tremendous inherent value of Edison, said Chris Whittle, the companys Founder and CEO. In a letter to Edison, Nasdaq said, . .. the closing price of the companys Class A common stock has been at $1.00 per share or greater for at least 10 consecutive trading days. Accordingly, the company has regained compliance with the Rule and this matter is now closed. Edison recently raised its EBITDA estimates for the total company in the current fiscal year by 30%, saying it expects to generate annual EBITDA of $26,000,000. The company also said that it expects to post positive net income in the fourth quarter of this fiscal year, the first quarterly net income in the company's 10 year history. In addition, Edison announced that it expects to generate approximately $50 to $70 million in incremental cash flow during the next three quarters from refinancing of a portion of its notes receivable from charter schools (approximately $30-$50 million), and improvements in the collection of receivables from its managed schools customers (approximately $20 million). The companys balance sheet remains strong with shareholder equity of $219,000,000 or $4.07 per share, including $31.5 million of cash on hand at September 30, 2002. The company expects to end the year with cash on the balance sheet of approximately $25 million. This amount would be after material reduction in the companys debt level and substantial investment in FY04 new business. The company also recently announced that it was entering the After School and Supplemental Services businesses, as well as substantially expanding its Summer School business.
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