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Extraction Summary

1
People
5
Organizations
0
Locations
3
Events
2
Relationships
4
Quotes

Document Information

Type: Financial report / management discussion and analysis (md&a)
File Size: 2.83 MB
Summary

This document is page 75 of a financial report detailing the 'Management's Discussion and Analysis' of KLC's operations following its January 2005 acquisition of KinderCare. It outlines significant financial restructuring, including the assumption of over $1 billion in various debts (term, bridge, mortgage, and mezzanine) and a 'Real Estate Transaction' in November 2005 that split the company into operating (OpCo) and property (PropCo) entities. The text explains the non-standard (pro forma) accounting methods used to present these results, noting they do not strictly conform to SEC Regulation S-X Article 11.

People (1)

Name Role Context
Management Executives of KLC
Refers to the collective management team providing the analysis and views on the business division.

Organizations (5)

Name Type Context
KLC
The acquiring company (Knowledge Learning Corporation).
KinderCare
The company acquired by KLC in January 2005.
KLC PropCo
Special purpose subsidiaries holding real estate assets.
KLC OpCo
Subsidiaries holding customer contracts and operations.
SEC
Securities and Exchange Commission, referenced regarding regulations S-X, S-K, and G.

Timeline (3 events)

February 2005
KLC refinanced bridge debt
N/A
KLC
January 2005
KLC acquired KinderCare
N/A
November 2005
Real Estate Transaction: KLC divided business into PropCo and OpCo
N/A

Relationships (2)

KLC Acquisition KinderCare
In January 2005, KLC acquired KinderCare
KLC PropCo Business Division/Lessor-Lessee KLC OpCo
KLC PropCo leased its owned centers back to KLC OpCo

Key Quotes (4)

"In January 2005, KLC acquired KinderCare and incurred $540 million of term debt"
Source
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Quote #1
"Management believes that this division represents the best way to analyze the business going forward."
Source
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Quote #2
"The discussion below presents the pro forma results of consolidated KLC (KLC OpCo and KLC PropCo) as if the KinderCare acquisition and the Real Estate Transaction occurred on January 1, 2004."
Source
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Quote #3
"Our pro forma results for KLC were not prepared in conformity with Article 11 of Regulation S-X of the SEC"
Source
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Quote #4

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