Trader Alerts: K12 Inc. (NYSE: LRN)

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, newly declared its results for the 1st-financial quarter finished September 30, 2k19.

Financial Highlights for the Three Months finished September 30, 2k19 (1st-Quarter Financial Year 2k20)

  • Revenues of $257.10M, contrast to revenues of $251.30M in the 1st-quarter of FY 2k19.
  • Loss from operations of $19.40M, contrast to loss from operations of $13.80M in the 1st-quarter of FY 2k19.
  • Net loss attributable to common stockholders of $9.70M, contrast to a net loss attributable to common stockholders of $8.30M in the 1st-quarter of FY 2k19.
  • Net loss attributable to common stockholders for each share of $0.250, contrast to a net loss attributable to common stockholders of $0.220 for each share in the 1st-quarter of FY 2k19.

To supplement our fiscal statements presented in accordance with the U.S. generally accepted accounting principles (GAAP), we are also presenting adjusted operating income (loss) and adjusted EBITDA. The administration believes that these additional metrics give helpful information to our shareholders as an indicator of performance because they exclude stock-based compensation costs. Non-GAAP Financial Highlights for the three months finished September 30, 2k19 (1st-Quarter Financial Year 2k20) are as follows:

  • Adjusted operating loss of $13.90M, a contrast to an adjusted operating loss of $9.70M in the 1st-quarter of FY 2k19.
  • Adjusted EBITDA of $3.30M, a contrast to adjusted EBITDA of $8.80M in the 1st-quarter of FY 2k19.

A reconciliation of these non-GAAP fiscal measures to the most directly comparable GAAP financial measures is offered below.

Liquidity

As of September 30, 2k19, the Company had cash, cash equivalents, and restricted cash of $167.40M, a boost of $22.40M contrast to the $145.00M stated at September 30, 2k18. Contrast to the $284.60M stated at June 30, 2k19, cash, cash equivalents, and restricted cash in the quarter reduced $117.20M. This decline is mostly the result of normal seasonal expenditures incurred at the start of the school year.

Capital Expenditures

Capital expenditures for the three months finished September 30, 2k19 were $16.90M, a decline of $0.80M from the previous year’s 1st-three months, and was comprised of:

  • $1.20M for property and equipment,
  • $7.20M for capitalized software development, and
  • $8.50M for capitalized curriculum development.

Outlook

The Company is forecasting the following for the full year, fiscal 2k20:

  • Revenue in the range of $1,020.00M to $1,035.00M.
  • Capital expenditures of $45.00M to $49.00M. Note: Capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined in our Statement of Cash Flows.
  • Tax rate of 28.00 percent to 30.00 percent.
  • Adjusted operating income in the range of $68.00M to $72.00M. (3)

The Company is forecasting the following for the 2nd-quarter, fiscal 2k20:

  • Revenue in the range of $255.00M to $260.00M.
  • Capital expenditures of $9.00M to $11.00M. Note: Capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined in our Statement of Cash Flows.
  • Adjusted operating income in the range of $35.00M to $37.00M.