SHAREHOLDER ALERT: Lundin Law PC Announces Securities Class Action Lawsuit against K12, Inc. and Reminds Investors with Losses to Contact the Firm

August 29, 2016

LOS ANGELES, CA / ACCESSWIRE / August 29, 2016 / Lundin Law PC (the “Firm”) announces a class action lawsuit has been filed against K12, Inc. (“K12” or the “Company”) (LRN) concerning possible violations of federal securities laws between November 7, 2013 and October 27, 2015 (the “Class Period”). Investors, who purchased or otherwise acquired shares during the Class Period, should contact the Firm in advance of the September 19, 2016 lead plaintiff motion deadline.

To participate in this class action lawsuit, click here. You can also call Brian Lundin, Esquire, of Lundin Law PC, at 888-713-1033, or e-mail him at brian@lundinlawpc.com.

No class has been certified in the above action. Until a class is certified, you are not considered represented by an attorney. You may also choose to do nothing and be an absent class member.

According to the complaint, K12 issued false and misleading statements and/or failed to disclose: that the Company published misleading advertisements about students’ academic progress, parent satisfaction, graduates’ eligibility for admission into the University of California and California State University, class sizes, the individualized and flexible nature of K12’s instruction, hidden costs, and the quality of the materials provided to students; that the Company submitted inflated student attendance numbers to the California Department of Education in order to receive additional funding; that K12 was open to potential civil and criminal liability due to these practices; that K12 would likely be forced to end these practices, which would have a negative impact on its operations and prospects; and as a result of the above, the Company’s public statements were materially false and misleading at all relevant times. When this information was released to the public, shares of K12 dropped in value, causing investors harm.

Lundin Law PC was founded by Brian Lundin, a securities litigator based in Los Angeles dedicated to upholding shareholders’ rights.

This press release may be considered Attorney Advertising in certain jurisdictions under the applicable law and ethical rules.

Contact:

Lundin Law PC Brian Lundin, Esq. Telephone: 888-713-1033 Facsimile: 888-713-1125 brian@lundinlawpc.com http://lundinlawpc.com/

SOURCE: Lundin Law PC

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SHAREHOLDER ALERT: Lundin Law PC Announces Securities Class Action Lawsuit against K12, Inc. and Encourages Investors with Losses to Contact the Firm

LOS ANGELES, CA / ACCESSWIRE / August 10, 2016 / Lundin Law PC (the “Firm”) announces that a class action lawsuit has been filed against K12, Inc. (“K12” or the “Company”) (LRN) concerning possible violations of federal securities laws between November 7, 2013 and October 27, 2015 (the “Class Period”). Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm in advance of the September 19, 2016 lead plaintiff motion deadline.

To participate in this class action lawsuit, click here. You can also call Brian Lundin, Esquire, of Lundin Law PC, at 888-713-1033, or e-mail him at brian@lundinlawpc.com.

No class has been certified in the above action. Until a class is certified, you are not considered represented by an attorney. You may also choose to do nothing and be an absent class member.

According to the complaint, K12 issued false and misleading statements and/or failed to disclose: that the Company published misleading advertisements about students’ academic progress, parent satisfaction, graduates’ eligibility for admission into the University of California and California State University, class sizes, the individualized and flexible nature of K12’s instruction, hidden costs, and the quality of the materials provided to students; that the Company submitted inflated student attendance numbers to the California Department of Education in order to receive additional funding; that K12 was open to potential civil and criminal liability due to these practices; that K12 would likely be forced to end these practices, which would have a negative impact on its operations and prospects; and as a result of the above, the Company’s public statements were materially false and misleading at all relevant times. When this news was disclosed, shares of K12 decreasing in value, causing investors harm.

Lundin Law PC was founded by Brian Lundin, a securities litigator based in Los Angeles dedicated to upholding shareholders’ rights.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contact:

Lundin Law PC Brian Lundin, Esq. Telephone: 888-713-1033 Facsimile: 888-713-1125 brian@lundinlawpc.com http://lundinlawpc.com/

SOURCE: Lundin Law PC

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Glancy Prongay & Murray Announces the Filing of a Securities Class Action on Behalf of K12 Inc. Investors and Encourages Investors to Contact the Firm

July 20, 2016 02:33 PM Eastern Daylight Time

LOS ANGELES–(BUSINESS WIRE)–Glancy
Prongay & Murray LLP
(“GPM”) announces that it has filed a class
action lawsuit in the United States District Court for the Northern
District of California on behalf of investors who purchased K12 Inc.
(“K12” or the “Company”) (NYSE: LRN)
securities between November 7, 2013, and October 27, 2015,
inclusive (the “Class Period”). K12 investors have sixty days from
the date of this notice
 to file a lead plaintiff motion.

Investors suffering losses on their K12 investments are encouraged to
contact Lesley Portnoy of GPM to discuss their legal rights in this
class action at 310-201-9150 or by email to shareholders@glancylaw.com.

The complaint filed in this lawsuit alleges that throughout the Class
Period, Defendants made materially false and/or misleading statements,
as well as failed to disclose material adverse facts about the Company’s
business, operations, and prospects. Specifically, Defendants made false
and/or misleading statements and/or failed to disclose: (1) that K12 was
publishing misleading advertisements about students’ academic progress,
parent satisfaction, their graduates’ eligibility for University of
California and California State University admission, class sizes, the
individualized and flexible nature of K12’s instruction, hidden costs,
and the quality of the materials provided to students; (2) that K12
submitted inflated student attendance numbers to the California
Department of Education in order to collect additional funding; (3)
that, as a result of the aforementioned practices, the Company was open
to potential civil and criminal liability; (4) that the Company would
likely be forced to end these practices, which would have a negative
impact on K12’s operations and prospects, and/or that K12 was, in fact,
ending the practices; and (5) that, as a result of the foregoing,
Defendants’ statements about K12’s business, operations, and prospects,
were false and misleading and/or lacked a reasonable basis.

If you purchased shares of K12 during the Class Period you have sixty
days from the date of this notice
to ask the Court to appoint you as
lead plaintiff if you meet certain legal requirements. To be a member of
the Class you need not take any action at this time; you may retain
counsel of your choice or take no action and remain an absent member of
the Class. If you wish to learn more about this action, or if you have
any questions concerning this announcement or your rights or interests
with respect to these matters, please contact Lesley Portnoy, Esquire,
of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067
at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com,
or visit our website at http://glancylaw.com.
If you inquire by email please include your mailing address, telephone
number and number of shares purchased.

This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.

Contacts

Glancy Prongay & Murray LLP, Los AngelesLesley Portnoy,
310-201-9150 or 888-773-9224shareholders@glancylaw.comhttps://www.glancylaw.com

Glancy Prongay & Murray LLP

Release Summary

Glancy Prongay & Murray Announces the Filing of a Securities Class Action on Behalf of K12 Inc. Investors and Encourages Investors to Contact the Firm

Contacts

Glancy Prongay & Murray LLP, Los AngelesLesley Portnoy,
310-201-9150 or 888-773-9224shareholders@glancylaw.comhttps://www.glancylaw.com

K12 Inc. Reports Third Quarter Fiscal 2016 with Revenue of $221.3 Million

April 27, 2016 07:00 ET

| Source: K12 Inc.

HERNDON, Va., April 27, 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 third fiscal quarter ended March 31, 2016.

Financial Highlights for the Three Months Ended March 31, 2016 (Third Quarter Fiscal Year 2016)

  • Revenues of $221.3 million, compared to $244.6 million in the third quarter of FY 2015.
  • EBITDA, a non-GAAP measure (see reconciliation below), of $36.7 million, compared to $45.2 million in the third quarter of FY 2015.
  • Operating income of $19.1 million, compared to $27.4 million in the third quarter of FY 2015.
  • Net income attributable to common stockholders of $14.3 million, compared to $17.0 million in the third quarter of FY 2015. 
  • Diluted net income attributable to common stockholders per share of $0.37, compared to $0.45 in the third quarter of FY 2015. 

Financial Highlights for the Nine Months Ended March 31, 2016

  • Revenues of $651.4 million, compared to $712.6 million for the first nine months of FY 2015.
  • EBITDA, a non-GAAP measure (see reconciliation below), of $64.0 million, compared to $87.0 million for the first nine months of FY 2015.
  • Operating income of $13.4 million compared to $34.7 million for the first nine months of FY 2015.
  • Net income attributable to common stockholders of $10.0 million, compared to $22.6 million for the first nine months of FY 2015.
  • Diluted net income attributable to common stockholders per share of $0.26, compared to $0.60 for the first nine months of FY 2015.

Changes to the year-over-year financial results, for the three and nine months ended March 31, 2016, are primarily due to the transition of the Agora Cyber Charter School contract from a managed to a non-managed program.

Comments from Management                         

“We continue to achieve financial results in line with the guidance we provided for the year,” said Stuart Udell, Chief Executive Officer. “I am also extremely proud of this year’s academic accomplishments and the extraordinary efforts of our dedicated teachers and school teams.  While we have made great strides in the last few years, we will continue to work with our partners to further improve the academic outcomes for all the students we serve,” added Udell.

Cash, Capital Expenditures and Capital Leases

As of March 31, 2016, the Company had cash and cash equivalents of $199.5 million, an increase of $3.6 million compared to the $195.9 million reported at June 30, 2015. This increase is largely the result of normal seasonal trends.

Capital expenditures for the nine months ended March 31, 2016 were $41.0 million, a decrease of $4.3 million from the prior year’s first nine months, and was comprised of:

  • $2.5 million for property and equipment,
  • $26.3 million for capitalized software development, and
  • $12.2 million for capitalized curriculum.

Capital leases financed additional purchases of $6.9 million during the nine months ended March 31, 2016, primarily for student computers.  This compares to capital leases financed during the nine months ended March 31, 2015 of $12.1 million.

Revenue

The following table sets forth the Company’s revenues — Managed Public School Programs (curriculum and services sold to managed public schools), Institutional (curriculum, technology and services provided to school districts, public schools and other educational institutions that the Company does not manage), and Private Pay Schools and Other (private schools for which the Company charges student tuition and makes direct consumer sales) – for the periods indicated.

Beginning in fiscal 2016, the Company has presented revenue from Non-managed Programs as part of the Institutional line of business, along with the Institutional Software and Services, which together constitute total Institutional revenue.  In the prior year these revenues were presented as part of the Public School Programs line of business, which included both Managed and Non-managed Public School Programs. We believe this revised presentation clarifies and better aligns the disclosure of Non-Managed Program revenues with the Company’s operational and sales structure.

  Three Months Ended   Change   Nine Months Ended   Change
  March 31,   2016 / 2015   March 31,   2016 / 2015
($ in thousands)   2016     2015       $   %     2016     2015       $   %
Managed Public School Programs (1) $ 185,832   $ 213,230     $ (27,398 )   -12.8 %   $ 533,633   $ 612,344     $ (78,711 )   -12.9 %
Institutional                      
Non-managed Public School Programs (1)   13,145     9,324       3,821     41.0 %     44,441     31,009       13,432     43.3 %
Institutional Software & Services   10,645     10,954       (309 )   -2.8 %     36,134     35,670       464     1.3 %
Total Institutional   23,790     20,278       3,512     17.3 %     80,575     66,679       13,896     20.8 %
Private Pay Schools and Other   11,718     11,115       603     5.4 %     37,173     33,617       3,556     10.6 %
Total $ 221,340   $ 244,623     $ (23,283 )   -9.5 %   $ 651,381   $ 712,640     $ (61,259 )   -8.6 %
(1) Managed Programs include schools where K12 provides substantially all of the management, technology and academic support services in addition to curriculum, learning systems and instructional services. Non-managed Programs include schools where K12 provides curriculum and technology, and the school can also contract for instruction or other educational services.  Non-managed programs, however, do not offer primary administrative oversight.

Enrollment Data

The following table sets forth enrollment data for students in Managed Public School Programs and our Non-managed Public School Programs for the periods indicated.  These figures exclude enrollments from classroom pilot programs and consumer programs.

  Three Months EndedMarch 31,   2016 / 2015   Nine Months EndedMarch 31,   2016 / 2015
  2016   2015   Change    Change %   2016   2015   Change    Change %
Managed Public School Programs (1,2) 104,640   115,330     (10,690 )     -9.3 %   104,229   116,198     (11,969 )     -10.3 %
Non-managed Public School Programs (1) 26,816   20,165     6,651       33.0 %   27,326   20,341     6,985       34.3 %
(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.

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   Nine Months Ended   Change
  March 31,   2016 / 2015   March 31,   2016 / 2015
    2016     2015     $ %     2016     2015     $ %
Managed Public School Programs $ 1,776     $ 1,849     $ (73 )     -3.9 %   $ 5,120     $ 5,270     $ (150 )     -2.8 %
Non-managed Public School Programs   490       462       28       6.0 %     1,626       1,524       102       6.7 %

Fourth Quarter Outlook

The Company is forecasting the following for the fourth quarter of FY 2016:

  • Revenue in the range of $205 million to $215 million.
  • Operating income in the range of $5 million to $9 million.
  • Capital expenditures, which includes curriculum and software development, computers and infrastructure, of $22 million to $27 million.

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 April 27, 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 third quarter fiscal year 2016 financial results during a conference call scheduled for Wednesday, April 27, 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=119013.  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 April 27, 2016 at 11:00 a.m. ET through May 27, 2016 at 11:00 a.m. ET, at (877) 660-6853 (domestic) or (201) 612-7415 (international) using conference ID 13634573. A webcast replay of the call will be available at http://public.viavid.com/index.php?id=119013 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 nine months ended March 31, 2016, and are presented below without footnotes. Readers are encouraged to obtain and carefully review K12 Inc.’s Form 10-Q for the quarter ended March 31, 2016, including all financial statements contained therein and the footnotes thereto, filed with the SEC. The Form 10-Q 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
March 31,   June 30,
  2016       2015  
  (In thousands, except share and per share data)
ASSETS      
Current assets      
Cash and cash equivalents $ 199,508     $ 195,852  
Accounts receivable, net of allowance of $9,949 and $9,657 at March 31, 2016 and June 30, 2015, respectively   222,884       188,246  
Inventories, net   16,146       29,571  
Deferred tax asset   8,406       8,989  
Prepaid expenses   16,837       11,428  
Other current assets   24,797       24,877  
Total current assets   488,578       458,963  
Property and equipment, net   26,717       34,407  
Capitalized software, net   67,710       62,683  
Capitalized curriculum development costs, net   58,345       58,696  
Intangible assets, net   19,347       21,195  
Goodwill   66,160       66,160  
Deposits and other assets   7,049       6,495  
Total assets $ 733,906     $ 708,599  
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY              
Current liabilities      
Current portion of capital lease obligations $ 13,453     $ 16,635  
Accounts payable   15,745       29,819  
Accrued liabilities   14,209       12,486  
Accrued compensation and benefits   26,898       26,790  
Deferred revenue   50,898       24,927  
Total current liabilities   121,203       110,657  
Capital lease obligations, net of current portion   9,660       13,022  
Deferred rent, net of current portion   6,958       7,692  
Deferred tax liability   27,654       22,456  
Other long-term liabilities   6,475       8,233  
Total liabilities   171,950       162,060  
Commitments and contingencies          
Redeemable noncontrolling interest   9,801       9,601  
Stockholders’ equity              
Common stock, par value $0.0001; 100,000,000 shares authorized; 42,593,095 and 41,837,894 shares issued and 39,090,497 and 38,335,296 shares outstanding at March 31, 2016 and June 30, 2015, respectively   4       4  
Additional paid-in capital   668,238       663,461  
Accumulated other comprehensive loss   (643 )     (1,065 )
Accumulated deficit   (40,444 )     (50,462 )
Treasury stock of 3,502,598 shares at cost at March 31, 2016 and June 30, 2015   (75,000 )     (75,000 )
Total stockholders’ equity   552,155       536,938  
Total liabilities, redeemable noncontrolling interest and equity $ 733,906     $ 708,599  
K12 INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended   Nine Months Ended
  March 31,   March 31,
  2016       2015       2016       2015  
  (In thousands, except share and per share data)
Revenues $ 221,340     $ 244,623     $ 651,381     $ 712,640  
Cost and expenses                              
Instructional costs and services   134,755       148,985       403,374       440,857  
Selling, administrative, and other operating expenses   64,888       64,871       225,598       226,972  
Product development expenses   2,563       3,337       9,004       10,065  
Total costs and expenses   202,206       217,193       637,976       677,894  
Income from operations   19,134       27,430       13,405       34,746  
Interest expense, net   (101 )     (315 )     (596 )     (134 )
Income before income tax expense and noncontrolling interest   19,033       27,115       12,809       34,612  
Income tax expense   (5,368 )     (10,586 )     (3,924 )     (12,711 )
Net income   13,665       16,529       8,885       21,901  
Adjust net loss attributable to noncontrolling interest   608       484       1,133       667  
Net income attributable to common stockholders $ 14,273     $ 17,013     $ 10,018     $ 22,568  
Net income attributable to common stockholders per share                              
Basic $ 0.38     $ 0.46     $ 0.27     $ 0.60  
Diluted $ 0.37     $ 0.45     $ 0.26     $ 0.60  
Weighted average shares used in computing per share amounts:                              
Basic   37,692,826       37,211,634       37,562,106       37,334,598  
Diluted   38,999,871       37,408,911       38,559,204       37,574,665  
K12 INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended March 31,
    2016       2015  
  (In thousands)
Cash flows from operating activities      
Net income $ 8,885     $ 21,901  
Adjustments to reconcile net income to net cash provided by operating activities              
Depreciation and amortization expense   50,622       52,273  
Stock-based compensation expense   13,759       13,471  
Excess tax benefit from stock-based compensation   (6 )     (8 )
Deferred income taxes   (552 )     4,128  
Provision for doubtful accounts   2,895       1,442  
Provision for excess and obsolete inventory   543       541  
Benefit for student computer shrinkage and obsolescence   (422 )     (262 )
Expensed leased computer peripherals   2,532        
Changes in assets and liabilities:              
Accounts receivable   (37,521 )     (81,421 )
Inventories   12,882       15,532  
Prepaid expenses   (5,409 )     (4,226 )
Other current assets   79       (3,719 )
Deposits and other assets   (159 )     (425 )
Accounts payable   (14,074 )     (10,979 )
Accrued liabilities   3,483       (1,974 )
Accrued compensation and benefits   110       4,619  
Deferred revenue   25,971       32,336  
Deferred rent and other liabilities   (2,496 )     2,510  
Net cash provided by operating activities   61,122       45,739  
Cash flows from investing activities              
Purchase of property and equipment   (2,458 )     (7,656 )
Capitalized software development costs   (26,321 )     (25,430 )
Capitalized curriculum development costs   (12,206 )     (12,194 )
Investment in LearnBop, Inc.         (6,512 )
Net cash used in investing activities   (40,985 )     (51,792 )
Cash flows from financing activities              
Repayments on capital lease obligations   (13,428 )     (16,743 )
Purchase of treasury stock         (26,452 )
Proceeds from exercise of stock options   14       513  
Excess tax benefit from stock-based compensation   6       8  
Retirement of restricted stock for income tax withholding   (3,056 )     (2,388 )
Net cash used in financing activities   (16,464 )     (45,062 )
Effect of foreign exchange rate changes on cash and cash equivalents   (17 )     (2,144 )
Net change in cash and cash equivalents   3,656       (53,259 )
Cash and cash equivalents, beginning of period   195,852       196,109  
Cash and cash equivalents, end of period $ 199,508     $ 142,850  

Non-GAAP Financial Measures

EBITDA

EBITDA consists of net income plus net interest expense, 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 to EBITDA:

  Three Months Ended March 31,   Nine Months Ended December 31,
    2016     2015       2016     2015  
    (In thousands)   (In thousands)
Net income — K12 Inc.    $   14,273   $   17,013     $   10,018   $   22,568  
Interest expense (income), net        101       315         596       134  
Income tax expense       5,368       10,586         3,924       12,711  
Depreciation and amortization        17,586       17,764         50,622       52,273  
Noncontrolling interest        (608 )     (484 )       (1,133 )     (667 )
EBITDA    $   36,720   $   45,194     $   64,027   $   87,019  

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 33 states and the District of Columbia, and through school districts and public and private schools serving students in all 50 states and more than 100 countries.  More information can be found at K12.com.

K12 Inc.
Investor Contact:
Mike Kraft, 571-353-7778
VP Finance & Corporate Treasurer
mkraft@k12.com

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Director, SEC Reporting & Technical Accounting




Herndon, VA, USA | N/A


  • Industry:


    Education


  • Position Type:

    Full-Time



  • Functions:


    Accounting / Control
    General Management


  • Experience:

    5-7 years
    7-10 years

Job Description:

50 people have viewed this job

The Director of SEC Reporting & Technical Accounting manages all SEC Reporting and technical accounting including accounting policy, review of complex accounting transactions, writes position papers in support of accounting conclusions, and implements new standards. Reporting to the Corporate Controller, this position prepares financial reports for the U.S. Securities and Exchange Commission (SEC) including Forms 10-K, 10-Q, 8-K,and assist with Schedule 14 any other SEC reports that include financial information, and manage technical accounting matters. 

•    Preparation and management of the quarterly and annual SEC filings to include coordinating with internal Legal and Investor Relations and independent auditors;

•    Complies the Company’s consolidated quarterly and annual financial statements and the preparation and analysis of all financial information underlying the statements, footnotes and supporting schedules;

•    Performs U.S. Generally Accepted Accounting Principles (US GAAP) and SEC accounting research and provides technical guidance for new or unique business transactions to support the Company’s changing business and implementation of new accounting standards;

•    Coordinates with the Accounting Department to gather and support information necessary to address new accounting standards implementation;

•    Provides companywide expertise on accounting for revenue recognition;

•    Works closely across the Accounting Department on business issues impacting financial statements and footnote presentations and disclosures;

•    Manages equity based compensation accounting, including evaluation of proposed compensation programs and coordination with executives, legal, human resources and third party equity administrator. Establishes and maintains a close working relationship with the Company’s Financial Planning & Analysis (FP&A), Investor Relations and Legal;

•    Prepares collaborative responses to standard and ad-hoc inquiries and requests from FP&A; 

•    Participates in ad hoc projects, including assisting the corporate controllership team with technical accounting research, peer comparison disclosures, acquisitions/divestitures and due diligence activities;

•    Works with external and internal auditors to support quarter and year-end financial audits and internal control reviews; 

•    Establishes and monitors key internal controls over financial reporting to ensure compliance with Sarbanes-Oxley (SOX);

•    Assists Investor Relations with providing financial information and analysis for investor calls and presentations as well as individual queries that may arise.

Supervisory Responsibilities: This position has no supervisory responsibilities.

Requirements    Bachelor’s degree in Accounting, Finance or related field

· (6) years of public accounting, plus several years of industry financial reporting experience 

Certificates and Licenses: Certified Public Accountant (CPA) required

· Strong understanding of US GAAP and SEC accounting and disclosure standards and genuine interest and proven ability to research complex accounting and finance matters (Revenue recognition, Variable Interest Entity, purchase accounting, deconsolidation, noncontrolling interest, equity based compensation, International Accounting, etc)

· Experience in public accounting with a Big 4 firm for years minimum, attaining Manager or level or higher

· Excellent oral and written communication skills 

· Ability to work collaboratively across departmental functions

· Project management skills and an ability to perform thorough and complex financial statement analytics 

· Proficiency with Oracle (preferred) or another large ERP, Microsoft Excel, PowerPoint, Access, Outlook, Word

PREFERRED QUALIFICATIONS: 

· ’s degree in Accounting, Finance or related field

· (8) years plus relevant experience


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Can California AG’s new bureau clean up for-profit virtual schools?

A K12 Inc subpoena revealed in an SEC filing reveals wider investigation of virtual charters

Inside a carefully decorated home, a young girl in a navy sweater and a plaid scarf sits in front of a roaring fire place. Two framed photographs of her sit in the background, perched on a granite mantel. This is Emma. She’s in sixth grade.

“I used to go to traditional schools, and I’d get left behind,” she says. “There’s 30 students in my class and there’s only one teacher, and she can’t always get to each student.”

Emma stars in a promotional video on the website for California Virtual Academies, a chain of online virtual schools run by the online school management company K12 Inc.

Yet it’s online students like Emma who are now reportedly getting left behind — one issue, among many, that may have helped spark a new state investigation of the virtual schools industry.

On September 24, 2015, K12 Inc. was subpoenaed by the California Bureau of Children’s Justice, a new arm of the California Attorney General’s Office. A K12 SEC filing revealed that the subpoena was related to an industry-wide investigation of for-profit online charter schools.

“At this early stage, the Company is not aware of any material adverse effect this industry-wide investigation would have on the results of its operation and financial condition,” the filing stated.

A history of controversy and complaints

This isn’t the first time that K12’s California branch has come under scrutiny .

Earlier this year, a searing report from In The Public Interest , a DC-based research and policy institute, found that California Virtual Academies (CAVA), a chain of 11 virtual charter schools in California, was “a failing system that consistently produces more dropouts than graduates.”

The report called CAVA’s San Diego branch, which serves around 3,000 students, a “low-quality education in a poorly sourced educational setting.” It also noted that CAVA only graduated around 58% of its students, as opposed to approximately 80% in California overall.

That’s a problem, in part, because high school dropouts cost the state a reported $46 billion dollars in decreased revenue annually.

Before the release of the report lambasting CAVA, the California Charter Schools Association (CCSA) included a CAVA school, CAVA Kern in Simi Valley, in its  recommendations of 10 schools to close due to academic underperformance and a failure to meet the association’s Minimum Criteria for Renewal.

The other nine charters on CCSA’s list included Los Angeles County Online High , run by Olin Virtual Academy, currently still in operation.

A total of 31 charters ranked “Below CCSA’s Minimum Criteria for Renewal.”

Thirty-six online charters operate in California, according to the National Education Policy Center.

California teachers have also spoken out against CAVA, banding together to stage protests complete with props like empty school chairs meant to represent CAVA’s low graduation rates.

“We need local school districts to hold CAVA administrators accountable, so our students can thrive,” CAVA Los Angeles teacher Stacie Bailey told the San Gabriel Valley Tribune .

A New Office; A New Investigation

Last February, California Attorney General Kamala Harris opened a new office within the California Department of Justice: the Bureau of Children’s Justice. Two of the new bureau’s five core priority areas include tackling the state’s “elementary school truancy crisis” and “discrimination and inequities in education.”

Within seven months, at least one subpoena had already been filed in relation to an industry-wide investigation into for-profit online charters in the state.

Kristin Ford, a press secretary at the California Department of Justice, declined to comment “in order to protect the integrity of our investigations.”

A 2013-14 report by the National Education Policy Center, ” Virtual Schools in the U.S. 2014 ,” agreed, finding that 30% of online charters hadn’t received state accountability or performance ratings.

“Of the 231 schools with ratings,” the report says, “only 33.76% had academically acceptable ratings. On average, virtual schools’ Adequate Yearly Progress (AYP) results were 22 percentage points lower than those of brick-and-mortar schools.”

And in California, only 5 out of 36 virtual schools met AYP targets.

Virtual school performance: A national problem

Around the country, virtual charters have been scrutinized in Maine , Florida , Oklahoma , Ohio , and Massachusetts.

Overall, graduation rates for virtual schools are around half the national average, the NEPC report says .

And a recent 2015 report of 158 virtual charter schools from Stanford’s Center for Research on Education Outcomes (CREDO) found that the schools have an “overwhelming negative impact” on student learning as compared to traditional schools.

K12 Inc. has also long been the subject of intense media scrutiny. Last year, Bloomberg reported that the company had “lost management contracts or been threatened with school shutdowns in five states this year.”

And in 2011, the New York Times investigated the company, noting that “a portrait emerges of a company that tries to squeeze profits from public school dollars by raising enrollment, increasing teacher workload and lowering standards.” High-profile investors began  shorting K12 stock .

Are companies anticipating virtual classroom closures?

With ongoing controversy around transparency, student performance, and financial clarity, K12 has expressed interest in turning its focus to ed-tech and curriculum development instead.

A recent Buzzfeed article noted that the company’s CEO, Nathaniel Davis, said “… Most growth opportunities exist in the small slice of K12’s business devoted to selling content and curriculum,” reporting that the company planned to focus on “an increasing amount of energy and investment on selling its curriculum, called FuelEd , as well as software and other individual services …”

Education Week also reported the  pending transition , calling it a “rebranding move.”

New legislation proposed by Democratic Assemblyman Roger Hernandez that would prohibit all for-profit corporations from operating charter schools, online or not, in the state was successfully adopted by the California legislature earlier this year, in February. Yet the bill won’t go into effect until 2017.

For now, California Virtual Academies remain in expansion mode, with a self-reported total enrollment of around 16,000 students.

It’s unclear whether the new state investigation into the for-profit virtual school industry by the Attorney General’s office will change that.

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K12 Inc. Reports Financial Guidance for Full Year and First Quarter of Fiscal 2016


By GlobeNewswire,  October 14, 2015, 07:15:00 AM EDT



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HERNDON, Va., Oct. 14, 2015 (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 guidance for the full fiscal year ending June 30, 2016 (“FY 2016″) and the first fiscal quarter of 2016.

Fiscal Year 2016 Outlook

  • Revenues of $830 million to $865 million, compared to $948.3 million for the full fiscal year of 2015. The year over year decline is largely due to the Agora Cyber School shifting from a managed to non-managed program. The net impact of this transition is approximately $110 million for the year.
  • Operating income of $17 million to $23 million, compared to $18.4 million for the full fiscal year of 2015.
  • Capital expenditures, defined as curriculum development, software development, purchases of property and equipment and capitalized leases for student computers, of $70 million to $80 million, compared to $76.5 million for the full fiscal year of 2015.
  • Effective income tax rate of 39% to 41%.

First Quarter Fiscal Year 2016 Outlook

  • Revenues of $218 million to $222 million, compared to $236.7 million in the first quarter of FY 2015. The year over year decline is largely due to the Agora Cyber School shifting from a managed to non-managed program. The net impact of this transition for the first quarter is approximately $25 million.
  • Operating loss of $20 million to $22 million, compared to an operating loss of $13.2 million in the first quarter of FY 2015. Operating losses in the first quarter relate to the seasonality of SG&A costs at the beginning of every school year, which includes enrollment center and promotional expenses.
  • Capital expenditures, defined as curriculum development, software development, purchases of property and equipment and capitalized leases for student computers, of $15 million to $17 million, compared to $22.9 million in the first quarter of FY 2015.

The following table provides detail on student enrollments in Public School Programs as of the October count date. Public School Programs include both virtual and blended schools where a district or independent board has contracted with K12 to provide a full-time program of educational products and services. Enrollments are classified into Managed Programs and Non-managed Programs. Managed Programs include schools where K12 provides substantially all of the management, technology and academic support services in addition to curriculum, learning systems and instructional services. Non-managed Programs include schools where K12 provides curriculum and technology, and the school can also contract for instruction or other educational services. Non-managed programs, however, do not offer primary administrative oversight.

         
  Three Months Ended September 30, 2015 / 2014
   2015   2014  Change Change %
         
Managed Public School Programs (1,2,3)  104,429  118,609  (14,180) -12.0%
Non-managed Public School Programs (1,3)  27,754  20,630  7,124 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) Public School Programs include enrollments for which K12 receives no public funding or revenue.
(3) Public School Program enrollments are equal to the official count date number, which is the first Wednesday of October in a year, or October 7, 2015 for Q1 FY16 and October 1, 2014 for Q1 FY15.

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 October 14, 2015, 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 guidance for fiscal year 2015 financial results during a conference call scheduled for Wednesday, October 14, 2015 at 8:30 a.m. eastern time (ET).

A live webcast of the call will be available at http://public.viavid.com/index.php?id=116570. 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 October 14, 2015 at 11:00 a.m. ET through November 14, 2015 at 11:00 a.m. ET, at (877) 660-6853 (domestic) or (201) 612-7415 (international) using conference ID 13622167. A webcast replay of the call will be available at http://public.viavid.com/index.php?id=116570 for 30 days.

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.

CONTACT: K12 Inc.
         Investor Contact:
         Mike Kraft, 571-353-7778
         VP Finance & Corporate Treasurer
         mkraft@k12.com
         or
         Press Contact:
         Frank Giancamilli, 703-483-1529
         Senior Manager Corporate Communicationsfgiancamilli@k12.com


Source: K12 Inc.

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The annual meeting of the stockholders of K12 Inc. (NYSE:LRN) was held on December 17, 2014. The Company previously filed with the Securities and Exchange Commission a definitive proxy statement and related materials pertaining to this meeting, which describe in detail each of the three proposals submitted to stockholders at the meeting.K12, Inc. (NYSE:LRN) has 2.30% insider ownership while its institutional ownership stands at 96.20%. In last trading activity company’s stock closed at $12.99.

Stocks Under Consideration-Select Income REIT(SIR), Campus Crest Communities (CCG), K12 Inc. (LRN), Net Element International (NETE) | Techsonian

K12 Inc. (NYSE:LRN) is pleased to announced its financial position that during fiscal year 2014, the Company sold certain businesses which, in aggregate, were responsible for $16.9 million in revenue for the full year and were close to breakeven for the year. Excluding the impact of these businesses, revenue for the first quarter of FY 2014 would have been $224.9 million.

K12 Inc. (NYSE:LRN)decreased -0.90% to close at $12.14 in the last trading session and its total traded volume was 729,478 shares versus average volume of 505,282. The company has market cap of $470.99 million.

K12 Inc. Awarded Contract to be Curriculum Provider for Agora Cyber Charter School – MarketWatch

K12 Inc. Awarded Contract to be Curriculum Provider for Agora Cyber Charter School

Created with Highstock 2.0.1Time (EDT)10:0011:0012:001:002:003:00

HERNDON, Va., Oct 09, 2014 (GLOBE NEWSWIRE via COMTEX) –

K12 Inc. LRN, -5.72% 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 that it was awarded a three-year contract to provide the academic curriculum for Pennsylvania's Agora Cyber Charter School commencing in the 2015-2016 school year.

Over the last several weeks, K12 has been working with the Agora School Board in a Request-for-Proposal (RFP) process for the services and products required to operate one of the state's largest online public schools. During the RFP evaluation process, K12 was selected to be the content provider for the school year beginning September 2015. The nationally recognized K12 curriculum uses a combination of online lessons and traditional materials to provide an innovative learning platform for students. The online lessons blend text, photos, illustration, animation, audio, and interactivity, giving students an engaging educational experience.

The Agora Board previously announced that it would absorb the school's general administrative services and certain human resources functions as well as name vendors for select services which are currently provided by K12. Using the actual FY2014 enrollment volumes and reported financial results, the Company believes this new contract would have delivered approximately 25% of the revenue and 50% of the internal financial contribution when compared to K12's current contract with the Agora Board. Internal contribution is defined as revenue less direct costs for delivering the contracted services. Direct costs exclude all corporate, product, promotional, and other costs shared across all schools. The internal contribution impact in future periods may vary depending on actual student enrollment levels and the breadth of K12 curriculum services the school utilizes versus self-developed curriculum.

K12 will continue to support the school's charter renewal submission to the Pennsylvania Department of Education and looks forward to working with the students and families at Agora for many years.

About K12 Inc.

K12 Inc. LRN, -5.72% 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 K12program is offered through K12partner 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.

 CONTACT: K12 Inc. Investor Contact: Mike Kraft, 571-353-7778 VP Investor Relations mkraft@k12.com or Press Contact: Anthony Guglielmi, 571-392-2737 Director Corporate Communications aguglielmi@k12.com 

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