K12, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2016; Revises Capital Expenditure Guidance for the Fiscal Year 2017; Provides Earnings Guidance for the Third Quarter of Fiscal 2017
January 26, 2017 at 09:15 pm
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K12 Inc. announced unaudited consolidated earnings results for the second quarter and six months ended December 31, 2016. For the quarter, the company reported revenues of $221.090 million against $208.811 million a year ago. Income from operations was $18.323 million against $14.73 million a year ago. Net income attributable to common stockholders was $11.652 million or $0.30 per diluted share against $8.54 million or $0.23 per basic and diluted share a year ago. Income before income taxes and non controlling interest was $18.6 million against $14.54 million a year ago. EBITDA was $30.7 million, increasing 18.6% from the same quarter last year. Adjusted operating income of $22.9 million, compared to $19.7 million in the second quarter of fiscal year 2016. Adjusted EBITDA of $41.6 million, compared to $36.2 million in the second quarter of fiscal year 2016. Capital expenditures were $9.8 million, a decline of $1.8 million from the prior year. This decrease was a result of lower capitalized software and property and equipment expenditures, somewhat offset by larger investments in curriculum.
For the six months, the company reported revenues of $450.23 million against $430.041 million a year ago. Loss from operations was $4.35 million against $5.73 million a year ago. Net income attributable to common stockholders was $2.2 million or $0.06 per basic and diluted share against $4.3 million or $0.11 per basic and diluted share a year ago. Net cash provided by operating activities was $10.3 million against $12.95 million a year ago. Loss before income taxes and non controlling interest was $3.740 million against $6.224 million a year ago. Adjusted operating income of $4.9 million, compared to $3.8 million for the first six months of fiscal year 2016. Adjusted EBITDA of $41.3 million, compared to $36.8 million for the first six months of fiscal year 2016. Capital expenditures for the six months ended December 31, 2016 were $23.9 million, a decrease of $1.9 million from the prior year's first six months, and was comprised of: $1.3 million for property and equipment, $13.5 million for capitalized software development, and $9.1 million for capitalized curriculum.
The company revised capital expenditure guidance for the fiscal full year 2017. Capital expenditures are expected in the range of $55 million to $60 million. This is a reduction from the previous guidance of $60 million to $65 million.
The company provided earnings guidance for the fiscal third quarter 2017. Revenue is expected in the range of $210 million to $220 million. Operating income is expected in the range of $14 million to $17 million. Capital expenditures is expected in the range of $14 million to $16 million. Adjusted operating income is expected in the range of $18 million to $21 million.
Stride, Inc. is an education services company providing virtual and blended learning. It provides tech-enabled education solutions, curriculums, and programs directly to students, schools, the military, and enterprises in primary, secondary and postsecondary settings. It offers K-12 education for students, schools, and districts, including career learning services through middle and high school curriculums. For adult learners, it delivers professional skills training in healthcare and technology, as well as staffing and talent development. Its technology-based products and services enable its clients to attract, enroll, educate, track progress and support students. Its solutions address two markets: General Education and Career Learning. For both the General Education and Career Learning markets, it offers school-as-a-service offering, which includes an integrated package of curriculum, technology systems, instruction, and support services that it administer on behalf of its customers.
K12, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2016; Revises Capital Expenditure Guidance for the Fiscal Year 2017; Provides Earnings Guidance for the Third Quarter of Fiscal 2017