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K12 Inc. Reports Fiscal 2016 Revenue of $872.7 Million

HERNDON, Va., Aug. 09, 2016 (GLOBE NEWSWIRE) -- K12 Inc. (NYSE:LRN), a technology-based education company and leading provider of proprietary curriculum and online school programs for students in pre-K through high school, today announced its results for the fourth fiscal quarter and full fiscal year ended June 30, 2016.

Financial Highlights for the Three Months Ended June 30, 2016 (Fourth Quarter Fiscal Year 2016)

  • Revenues of $221.3 million, compared to $235.7 million in the fourth quarter of FY 2015.
  • Operating income of $0.5 million, compared to an operating loss of $16.3 million in the fourth quarter of FY 2015.
  • Net loss attributable to common stockholders of $1.0 million, compared to net loss of $11.6 million in the fourth quarter of FY 2015.
  • Diluted net loss attributable to common stockholders per share of $0.03, compared to net loss of $0.31 in the fourth quarter of FY 2015.
  • EBITDA, a non-GAAP measure (see reconciliation below), of $18.1 million, compared to $15.2 million in the fourth quarter of FY 2015.

Financial Highlights for the Year Ended June 30, 2016

  • Revenues of $872.7 million, compared to $948.3 million for the full fiscal year of 2015.
  • Operating income of $13.9 million, compared to $18.4 million for the full fiscal year of 2015.
  • Net income attributable to common stockholders of $9.0 million, compared to $11.0 million for the full fiscal year of 2015.
  • Diluted net income attributable to common stockholders per share was $0.23, compared to $0.29 for the full fiscal year of 2015.
  • EBITDA, a non-GAAP measure (see reconciliation below), of $82.1 million, compared to $102.2 million for the full fiscal year of 2015.

On July 8, 2016, K12 announced that it had reached a settlement with the State of California resolving all claims related to an Attorney General inquiry with no admission of liability or wrongdoing, and no fines or penalties. K12 took a net charge during the fourth quarter of fiscal 2016 related to this settlement of $7.1 million. The $7.1 million is comprised of: $2.6 million settlement payments; $6.0 million to defray the cost to taxpayers for the Attorney General's expenses related to its investigation of K12 Inc. as part of an industry-wide probe of for profit virtual schools; and a $1.5 million insurance reimbursement related to these events.

During the quarter ended June 30, 2015, the Company incurred charges totaling $28.4 million (products, software and inventory reserve of $14.3 million, accounts receivable reserves of $10.7 million, and severance costs of $3.4 million).

Excluding the impact of those charges, and the aforementioned net settlement costs, for the three months ended June 30, 2016 the comparisons to prior year results would have been as follows (see Appendix A, B and C below for more details).

  • Operating income of $7.6 million, compared to operating income of $8.9 million for the fourth quarter of FY 2015.
  • Net income attributable to common stockholders of $3.5 million, compared to net income of $6.8 million for the fourth quarter of FY 2015.
  • Diluted net income attributable to common stockholders per share of $0.09 as compared to diluted net income attributable to common stockholders per share of $0.18 for the fourth quarter of FY 2015.
  • EBITDA of $25.2 million, compared to the $26.6 million for the fourth quarter of FY 2015.

For the full year, excluding the impact of the aforementioned net settlement and charges, the comparisons to prior year results would have been as follows. (see Appendix A, B and C below for more details).

  • Operating income of $21.0 million compared to $43.7 million for the full fiscal year of 2015.
  • Net income attributable to common stockholders of $13.5 million compared to $29.4 million for the full fiscal year of 2015.
  • Diluted net income attributable to common stockholders per share would have been $0.35, compared to $0.78 for the full fiscal year of 2015.
  • EBITDA of $89.2 million compared to $113.6 million for the full fiscal year of 2015.

Comments from Management

“We continue to focus on improving academic outcomes for the students we serve,” said Stuart Udell, Chief Executive Officer. “At the same time, we selectively invested in strategic growth areas, including expanding our state and school footprint, launching new program offerings, and executing on a strategic acquisition,” added Udell.

Cash, Capital Expenditures and Capital Leases

For the year ended June 30, 2016, the Company had cash and cash equivalents of $214.0 million, an increase of $18.1 million compared to the $195.9 million reported at June 30, 2015.

Capital expenditures for the year ended June 30, 2016 were $62.9 million, an increase of $1.1 million from the prior year’s full fiscal year, and was comprised of:

  • $5.0 million for property and equipment,
  • $36.3 million for capitalized software development, and
  • $21.6 million for capitalized curriculum

Capital leases financed additional purchases of $10.9 million during the year ended June 30, 2016, primarily for student computers. This compares to capital leases financed during the year ended June 30, 2015 of $14.7 million.

Revenue and Enrollment Data

Revenue

The Company’s revenues are generally in three categories -- Managed Public School Programs (management, technology and academic support services provided to public schools), Institutional (Non-managed Public School Programs – curriculum, technology and other educational services where K12 does not provide primary administrative oversight, and Institutional Software and Services – educational software and services provided to school districts, public schools and other educational institutions), and Private Pay Schools and Other (private schools for which it charges student tuition and makes direct consumer sales) – The following table sets forth the Company’s revenues for the periods indicated:

Three Months Ended Change Year Ended Change
June 30, 2016 / 2015 June 30, 2016 / 2015
($ in thousands) 2016 2015 $% 2016 2015 $%
Managed Public School Programs (1)$183,426 $201,333 $(17,907) -8.9% $717,059 $813,677 $(96,618) -11.9%
Institutional
Non-managed Public School Programs (1) 11,160 8,312 2,848 34.3% 55,601 39,321 16,280 41.4%
Institutional Software & Services 16,856 13,101 3,755 28.7% 52,990 48,770 4,220 8.7%
Total Institutional 28,016 21,413 6,603 30.8% 108,591 88,091 20,500 23.3%
Private Pay Schools and Other 9,877 12,909 (3,032) -23.5% 47,050 46,526 524 1.1%
Total$221,319 $235,655 $(14,336) -6.1% $872,700 $948,294 $(75,594) -8.0%

Enrollment Data

The following table sets forth average enrollment data for the periods indicated. These figures exclude enrollments from classroom pilot programs and consumer programs.

Three Months Ended
June 30,
2016 / 2015 Year Ended
June 30,
2016 / 2015
2016 2015 Change
Change %
2016 2015 Change
Change %
Managed Public School Programs (1,2,3)98,406 108,913 (10,507) -9.6% 102,935 114,579 (11,644) -10.2%
Non-managed Public School Programs (1)25,723 19,044 6,679 35.1% 26,970 20,053 6,917 34.5%


(1)If a school changes from a Managed to a Non-managed program, the corresponding enrollment classification would change in the period in which the contract arrangement changed.
(2)Managed Public School Programs include enrollments for which K12 receives no public funding or revenue.
(3)Managed Public School Program enrollments are lower than those reported in our historical average student enrollments for Managed Public Schools due to reclassifying certain schools that meet the current definition of Non-managed Programs.

Revenue per Enrollment Data

The following table sets forth revenue per average enrollment data for students in Public School Programs for the periods indicated.

Three Months Ended Change Year Ended Change
June 30, 2016 / 2015 June 30, 2016 / 2015
2016 2015 $ % 2016 2015 $ %
Managed Public School Programs$ 1,864 $ 1,849 $ 15 0.8% $ 6,966 $ 7,101 $ (135) -1.9%
Non-managed Public School Programs 434 436 (2) -0.5% 2,062 1,961 101 5.2%

Fiscal Year 2017 Outlook

As previously disclosed, the Company will provide an outlook for fiscal 2017 results as part of the first quarter results report for fiscal year 2017. This first quarter results is planned to be published at or near the end of October 2016. No separate guidance communication, or enrollment counts, for fiscal 2017 will be provided before that time.

Special Note on Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as “anticipates,” “believes,” “estimates,” “continues,” “likely,” “may,” “opportunity,” “potential,” “projects,” “will,” “expects,” “plans,” “intends” and similar expressions to identify forward looking statements, whether in the negative or the affirmative. These statements reflect our current beliefs and are based upon information currently available to us. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve sufficient levels of new enrollments to sustain or to grow our business model; failure of the schools we serve to comply with regulations resulting in a loss of funding or an obligation to repay funds previously received; declines or variations in academic performance outcomes as curriculum and testing standards evolve; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and in any school in which we operate; legal and regulatory challenges from opponents of virtual public education, public charter schools or for-profit education companies; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts with schools due to a loss of authorizing charter; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; non-compliance with laws and regulations related to operating schools in a foreign jurisdiction; entry of new competitors with superior competitive technologies and lower prices; and other risks and uncertainties associated with our business described in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of August 9, 2016, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

Conference Call

The Company will discuss its fourth quarter and full year fiscal year 2016 financial results during a conference call scheduled for Tuesday, August 9, 2016 at 8:30 a.m. eastern time (ET).

The conference call will be webcast and available at http://public.viavid.com/index.php?id=120283. Please access the web site at least 15 minutes prior to the start of the call.

To participate in the live call, investors and analysts should dial (877) 407-4019 (domestic) or (201) 689-8337 (international) at 8:15 a.m. (ET). No passcode is required.

A replay of the call will be available starting on August 9, 2016 at 11:00 a.m. ET through September 9, 2016 at 11:00 a.m. ET, at (877) 660-6853 (domestic) or (201) 612-7415 (international) using conference ID 13640973. A webcast replay of the call will be available at http://public.viavid.com/index.php?id=120283 for 30 days.

Financial Statements

The financial statements set forth below are not the complete set of K12 Inc.’s financial statements for the three months and full fiscal year ended June 30, 2016, and is presented below without footnotes. Readers are encouraged to obtain and carefully review K12 Inc.’s Form 10-K for the year ended June 30, 2016, including all financial statements contained therein and the footnotes thereto, filed with the SEC. The Form 10-K may be retrieved from the SEC's website at www.sec.gov or from K12 Inc.’s website at www.k12.com.

K12 INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
June 30,
2016 2015
(In thousands, except share and per share data)
ASSETS
Current assets
Cash and cash equivalents$213,989 $195,852
Accounts receivable, net of allowance of $10,813 and $9,657 at June 30, 2016 and June 30, 2015, respectively 169,554 188,246
Inventories, net 30,631 29,571
Deferred tax asset - 8,989
Prepaid expenses 9,634 11,428
Other current assets 22,047 24,877
Total current assets 445,855 458,963
Property and equipment, net 28,447 34,407
Capitalized software, net 70,055 62,683
Capitalized curriculum development costs, net 63,367 58,696
Intangible assets, net 23,102 21,195
Goodwill 87,285 66,160
Deposits and other assets 15,944 6,495
Total assets$734,055 $708,599
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current liabilities
Current portion of capital lease obligations$13,210 $16,635
Accounts payable 25,919 29,819
Accrued liabilities 26,877 12,486
Accrued compensation and benefits 31,042 26,790
Deferred revenue 25,964 24,927
Total current liabilities 123,012 110,657
Capital lease obligations, net of current portion 9,922 13,022
Deferred rent, net of current portion 6,661 7,692
Deferred tax liability 18,458 22,456
Other long term liabilities 9,780 8,233
Total liabilities 167,833 162,060
Commitments and contingencies - -
Redeemable noncontrolling interest 7,502 9,601
Equity:
K12 Inc. stockholders’ equity
Common stock, par value $0.0001; 100,000,000 shares authorized; 43,184,068 and 41,837,894 shares issued and 39,681,470 and 38,335,296 shares outstanding at June 30, 2016 and June 30, 2015, respectively 4 4
Additional paid-in capital 675,436 663,461
Accumulated other comprehensive loss (293) (1,065)
Accumulated deficit (41,427) (50,462)
Treasury stock of 3,502,598 and 2,195,196 shares at cost at June 30, 2015 and June 30, 2014, respectively (75,000) (75,000)
Total K12 Inc. stockholders’ equity 558,720 536,938
Total liabilities, redeemable noncontrolling interest and equity$734,055 $708,599


K12 INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
June 30, June 30,
2016 2015 2016 2015
(In thousands, except share and per share data)
Revenues$221,319 $235,655 $872,700 $948,294
Cost and expenses
Instructional costs and services 143,136 166,900 546,510 607,756
Selling, administrative, and other operating expenses 76,606 80,756 302,205 307,730
Product development expenses 1,067 4,317 10,071 14,381
Total costs and expenses 220,809 251,973 858,786 929,867
Income (Loss) from operations 510 (16,318) 13,914 18,427
Interest expense, net (21) (3,158) (617) (3,291)
Income (Loss) before income tax expense and noncontrolling interest 489 (19,476) 13,297 15,136
Income tax expense (822) 6,901 (4,746) (5,810)
Net income (loss) (333) (12,575) 8,551 9,326
Adjust net (income) loss attributable to noncontrolling interest (649) 995 484 1,662
Net income (loss) attributable to common stockholders$(982) $(11,580) $9,035 $10,988
Net income (loss) attributable to common stockholders per share
Basic$(0.03) $(0.31) $0.24 $0.29
Diluted$(0.03) $(0.31) $0.23 $0.29
Weighted average shares used in computing per share
amounts:
Basic 37,768,812 37,318,085 37,613,782 37,330,569
Diluted 37,768,812 37,318,085 38,850,388 37,625,425


K12 INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended June 30,
2016 2015
(In thousands)
Cash flows from operating activities
Net income$8,551 $9,326
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense 68,225 80,282
Stock-based compensation expense 18,616 21,299
Excess tax benefit from stock-based compensation (6) (118)
Deferred income taxes (3,818) (3,094)
Provision for doubtful accounts 4,610 9,300
Provision for inventory obsolescence 691 1,406
Provision for student computer shrinkage and obsolescence (459) (430)
Impairment loss on other assets 200 3,200
Expensed computer peripherals 2,625 3,519
Changes in assets and liabilities:
Accounts receivable 14,463 (1,892)
Inventories (1,751) 2,853
Prepaid expenses 1,860 (4,073)
Other current assets 2,830 (2,579)
Deposits and other assets (8,910) (1,440)
Accounts payable (3,900) (1,192)
Accrued liabilities 15,497 (7,854)
Accrued compensation and benefits 4,255 9,389
Deferred revenue 636 621
Deferred rent and other liabilities (2,437) 1,562
Net cash provided by operating activities 121,778 120,085
Cash flows from investing activities
Purchases of property and equipment (5,008) (9,928)
Capitalized software development costs (36,265) (33,755)
Capitalized curriculum development costs (21,627) (18,057)
Acquisition of LearnBop Inc. - (6,512)
Acquisition of LTS Education Systems, net of cash acquired (19,953) -
Net cash used in investing activities (82,853) (68,252)
Cash flows from financing activities
Repayments on capital lease obligations (17,402) (21,939)
Purchase of treasury stock - (26,452)
Proceeds from exercise of stock options 14 553
Excess tax benefit from stock-based compensation 6 118
Retirement of restricted stock for tax withholding (3,394) (2,672)
Net cash used in financing activities (20,776) (50,392)
Effect of foreign exchange rate changes on cash and cash equivalents (12) (1,698)
Net change in cash and cash equivalents 18,137 (257)
Cash and cash equivalents, beginning of year 195,852 196,109
Cash and cash equivalents, end of year $213,989 $195,852

Non-GAAP Financial Measures

EBITDA

EBITDA consists of net income plus net interest expense and other, plus income tax expense, minus income tax benefit, plus depreciation and amortization and non-controlling interest. Interest expense primarily consists of interest expense for capital leases. We use EBITDA in addition to income from operations and net income as a measure of operating performance. However, EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or GAAP, and when analyzing our operating performance, investors should use EBITDA in addition to, and not as an alternative for, net income as determined in accordance with GAAP. Not all companies use identical calculations for EBITDA, therefore our presentation of EBITDA may not be comparable to similarly titled measures of other companies. Furthermore, EBITDA is not intended to be a measure of free cash flow for our management's discretionary use, as it does not consider certain cash requirements such as capital expenditures, tax payments, interest payments, or other working capital.

We believe EBITDA is useful to an investor in evaluating our operating performance because it is widely used to measure a company's operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of corporate performance exclusive of our capital structure and the method by which assets were acquired. Our management uses EBITDA:

  • as an additional measurement of operating performance because it assists us in comparing our performance on a consistent basis; and
  • in presentations to the members of our Board of Directors to enable our Board to have the same measurement basis of operating performance as is used by management to compare our current operating results with corresponding prior periods and with the results of other companies in our industry.

The following tables provide a reconciliation of net income (loss) to EBITDA:

Three Months Ended June 30, Year Ended June 30,
2016 2015 2016 2015
(In thousands) (In thousands)
Net income (loss) — K12 Inc. $(982)$(11,580) $9,035 $10,988
Interest income (expense), net and other 21 3,158 617 3,291
Income tax expense (benefit) 822 (6,901) 4,746 5,810
Depreciation and amortization 17,603 31,528 68,225 83,801
Net income (loss) attributable to noncontrolling interest 649 (995) (484) (1,662)
EBITDA $18,113 $15,210 $82,139 $102,228

Appendix

(A)The following summary table is provided as reference only and compares fourth quarter and full year 2016 results with the same periods in 2015 adjusted for the $7.1 million net settlement incurred in the fourth quarter of 2016, and the $28.4 million in charges incurred in fourth quarter of FY 2015.


Three Months Ended Change Year Ended Change
June 30, 2016 / 2015 June 30, 2016 / 2015
($ in millions except per share amounts) 2016 2015 $% 2016 2015 $%
Operating Income$7.6 $8.9 $(1.3) -14.6% $21.0 $43.7 $(22.7) -51.9%
Net Income attributable to common and Series A stockholders$3.5 $6.8 $(3.3) -48.5% $13.5 $29.4 $(15.9) -54.1%
Diluted net income attributable to common stockholders per share, excluding Series A stockholders $0.09 $0.18 $(0.09) -50.0% $0.35 $0.78 $(0.43) -55.1%
EBITDA$25.2 $26.6 $(1.4) -5.3% $89.2 $113.6 $(24.4) -21.5%


(B)The following tables are provided as reference only and adjust fourth quarter and full year 2016 results for the $7.1 million net settlement incurred in the fourth quarter of FY 2016.


Three Months Ended June 30, 2016
Reported Results Net
Settlement Impact
Results
Excluding Settlement
Reported Results Results
Excluding Settlement
(In thousands, except share and per share data) (% of Revenue)
Revenues $221,319 $- $221,319 100.0% 100.0%
Cost and expenses
Instructional costs and services 143,136 - 143,136 64.7% 64.7%
Selling, administrative, and other operating expenses 76,606 7,080 69,526 34.6% 31.4%
Product development expenses 1,067 - 1,067 0.5% 0.5%
Total costs and expenses 220,809 7,080 213,729 99.8% 96.6%
Income (loss) from operations 510 (7,080) 7,590 0.2% 3.4%
Interest (expense), net and other (21) - (21) (0.0%) (0.0%)
Income (loss) before income tax expense and noncontrolling interest 489 (7,080) 7,569 0.2% 3.4%
Income tax (expense) benefit (822) 2,613 (3,435) (0.4%) (1.6%)
Net income (loss) (333) (4,467) 4,134 (0.2%) 1.9%
Adjust net income attributable to noncontrolling interest (649) - (649) (0.3%) (0.3%)
Net income (loss) attributable to common stockholders$(982) $(4,467) $3,485 (0.4%) 1.6%
Net income (loss) attributable to common stockholders per share
Basic$(0.03) $(0.12) $0.09
Diluted$(0.03) $(0.12) $0.09
Weighted average shares used in computing per share
amounts:
Basic37,768,812 37,768,812 37,768,812
Diluted37,768,812 37,768,812 37,768,812


Year Ended June 30, 2016
Reported Results Net
Settlement Impact
Results
Excluding Settlement
Reported Results Results
Excluding Settlement
(In thousands, except share and per share data) (% of Revenue)
Revenues $872,700 $- $872,700 100.0% 100.0%
Cost and expenses
Instructional costs and services 546,510 - 546,510 62.6% 62.6%
Selling, administrative, and other operating expenses 302,205 7,080 295,125 34.6% 33.8%
Product development expenses 10,071 - 10,071 1.2% 1.2%
Total costs and expenses 858,786 7,080 851,706 98.4% 97.6%
Income (loss) from operations 13,914 (7,080) 20,994 1.6% 2.4%
Interest (expense), net and other (617) - (617) (0.1%) (0.1%)
Income (loss) before income tax expense and noncontrolling interest 13,297 (7,080) 20,377 1.5% 2.3%
Income tax (expense) benefit (4,746) 2,613 (7,359) (0.5%) (0.8%)
Net income (loss) 8,551 (4,467) 13,018 1.0% 1.5%
Adjust net loss attributable to noncontrolling interest 484 - 484 0.1% 0.1%
Net income (loss) attributable to common stockholders$9,035 $(4,467) $13,502 1.0% 1.5%
Net income (loss) attributable to common stockholders per share
Basic$0.24 $(0.12) $0.36
Diluted$0.23 $(0.11) $0.35
Weighted average shares used in computing per share amounts:
Basic37,613,782 37,613,782 37,613,782
Diluted38,850,388 38,850,388 38,850,388


(C)During the quarter ended June 30, 2015, the Company incurred the following charges totaling $28.4 million of which $0.5 million were cash charges.
Reserves and write downs related to end of life products, software and inventory of $14.3 million.
Incremental accounts receivable reserves of $10.7 million, primarily related to closed schools, a funding deficit in one state and the interest on a receivable.
Severance costs of $3.4 million.
The following tables are provided as reference only and adjust fourth quarter and full year 2015 results for the removal of $28.4 million charges incurred in the fourth quarter of FY 2015.

The following tables are provided as reference only and adjust fourth quarter and full year 2015 results for the removal of $28.4 million charges incurred in the fourth quarter of FY 2015.

Three Months Ended June 30, 2015
Reported Results Specific Charges Results
Excluding Charges
Reported Results Results
Excluding Charges
(In thousands, except share and per share data) (% of Revenue)
Revenues $235,655 $- $235,655 100.0% 100.0%
Cost and expenses
Instructional costs and services 166,900 9,565 157,335 70.8% 66.8%
Selling, administrative, and other operating expenses 80,756 15,670 65,086 34.3% 27.6%
Product development expenses 4,317 - 4,317 1.8% 1.8%
Total costs and expenses 251,973 25,235 226,738 106.9% 96.2%
Income (loss) from operations (16,318) (25,235) 8,917 (6.9%) 3.8%
Realized gain on sale of assets - - - 0.0% 0.0%
Interest (expense), net and other (3,158) (3,200) 42 (1.3%) 0.0%
Income (loss) before income tax expense and noncontrolling interest (19,476) (28,435) 8,959 (8.3%) 3.8%
Income tax (expense) benefit 6,901 10,006 (3,105) 2.9% (1.3%)
Net income (loss) (12,575) (18,429) 5,854 (5.3%) 2.5%
Adjust net loss attributable to noncontrolling interest 995 - 995 0.4% 0.4%
Net income (loss) attributable to common stockholders$(11,580) $(18,429) $6,849 (4.9%) 2.9%
Net income (loss) attributable to common stockholders per share
Basic$(0.31) $(0.49) $0.18
Diluted$(0.31) $(0.49) $0.18
Weighted average shares used in computing per share amounts:
Basic37,318,085 37,318,085 37,318,085
Diluted37,318,085 37,318,085 37,318,085


Year Ended June 30, 2015
Reported Results Specific Charges Results
Excluding Charges
Reported Results Results
Excluding Charges
(In thousands, except share and per share data) (% of Revenue)
Revenues $948,294 $- $948,294 100.0% 100.0%
Cost and expenses
Instructional costs and services 607,756 9,565 598,191 64.1% 63.1%
Selling, administrative, and other operating expenses 307,730 15,670 292,060 32.5% 30.8%
Product development expenses 14,381 - 14,381 1.5% 1.5%
Total costs and expenses 929,867 25,235 904,632 98.1% 95.4%
Income (loss) from operations 18,427 (25,235) 43,662 1.9% 4.6%
Realized gain on sale of assets - - - 0.0% 0.0%
Interest (expense), net and other (3,291) (3,200) (91) (0.3%) (0.0%)
Income (loss) before income tax expense and noncontrolling interest 15,136 (28,435) 43,571 1.6% 4.6%
Income tax (expense) benefit (5,810) 10,006 (15,816) (0.6%) (1.7%)
Net income (loss) 9,326 (18,429) 27,755 1.0% 2.9%
Adjust net loss attributable to noncontrolling interest 1,662 - 1,662 0.2% 0.2%
Net income (loss) attributable to common stockholders$10,988 $(18,429) $29,417 1.2% 3.1%
Net income (loss) attributable to common stockholders per share
Basic$0.29 $(0.49) $0.79
Diluted$0.29 $(0.49) $0.78
Weighted average shares used in computing per share
amounts:
Basic37,330,569 37,330,569 37,330,569
Diluted37,625,425 37,625,425 37,625,425

About K12 Inc.

K12 Inc. (NYSE:LRN) is driving innovation and advancing the quality of education by delivering state-of-the-art, digital learning platforms and technology to students and school districts across the globe. K12’s award winning curriculum serves over 2,000 schools and school districts and has delivered more than four million courses over the past decade. K12 is a company of educators with the nation's largest network of K-12 online school teachers, providing instruction, academic services, and learning solutions to public schools and districts, traditional classrooms, blended school programs, and directly to families. The K12 program is offered through K12 partner public schools in approximately two-thirds of the states and the District of Columbia, and through private schools serving students in all 50 states and more than 100 countries. More information can be found at K12.com.

K12 Inc. Investor and Press Contact: Mike Kraft, 571-353-7778 VP Finance mkraft@k12.com

Source:K12 Inc.