Edison Schools Reports 50% Increase in First Quarter Revenues Wednesday, November 14, 2001 Edison Schools Inc. reported a 50% increase in revenues for the quarter ending September 30, 2001. Edisons revenues for the quarter increased to $97.3 million compared to $64.8 million a year ago. Gross site contribution for the quarter increased 124% to $9.6 million from $4.3 million last year. The company posted EBITDA, net of non-cash charges, of a negative $10.6 million, improved from a negative $12.7 million in the same period last year. The companys net loss for the period was $18.1 million, improved from a net loss of $19.5 million for the same period last year. The companys net loss as a percentage of revenues improved over 11 full points or nearly forty percent from 30.2% to 18.7%. Edisons loss per share was 34 cents, improved from 43 cents a year ago and 21 cents better than consensus estimates. Edison also reported positive trends in other critical indicators. Gross site contribution, a key measure of site profitability, was 9.8% as a percent of sales for the quarter compared to 6.6% in the prior year. The percent Edison spends on headquarters and start up functions (net of non-cash charges) improved from 26.2% last year to 20.8% this quarter. Revenues and gross site contribution were positively impacted during the quarter by $2.7 million of consulting revenues. "We are pleased to announce another strong quarter, one during which we successfully added 18,000 children to our system and reported continued increases in our academic gains, said Chris Whittle, the companys Chief Executive Officer. "During the first quarter, Edison exceeded its expectations and, given this strong performance, we remain comfortable that we will achieve our financial goals for the year, continued Adam Feild, the companys Chief Financial Officer. The company also announced that it revised its guidance upward for the current fiscal year to reflect the change in accounting standards regarding the amortization of intangible assets. The revised guidance is revenue of approximately $534 million, $11 million of EBITDA, net of stock-based charges, and 80 cents loss per share.
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