HOUSE_OVERSIGHT_024527.jpg
1.79 MB
Extraction Summary
1
People
6
Organizations
1
Locations
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Events
1
Relationships
3
Quotes
Document Information
Type:
Financial memorandum / business plan projection
File Size:
1.79 MB
Summary
This document is a financial projection memorandum for 'KLC OpCo' (likely Knowledge Learning Corporation) covering the period 2006 to 2011. It details revenue forecasts, projecting growth from $1.55 billion in 2006 to $2.29 billion in 2011, driven by tuition increases, utilization improvements, and the integration of KinderCare. The document outlines operational strategies including center closures in 2006-2007 followed by expansion, and the introduction of additional educational and non-educational products across its U.S. footprint.
People (1)
| Name | Role | Context |
|---|---|---|
| Management | Executives/Planners |
Mentioned as projecting utilization improvements and believing in favorable demographic trends.
|
Organizations (6)
| Name | Type | Context |
|---|---|---|
| KLC OpCo |
The operating company being analyzed/projected.
|
|
| ECE Centers |
Early Childhood Education centers, primary revenue source.
|
|
| KinderCare |
Mentioned in context of integration and rationalization of properties.
|
|
| KC Distance Learning |
A division or subsidiary providing revenue.
|
|
| School Partnerships |
A revenue stream.
|
|
| House Oversight Committee |
Implied by the footer 'HOUSE_OVERSIGHT'.
|
Locations (1)
| Location | Context |
|---|---|
|
Location where KLC OpCo plans to use its footprint of approximately 2,000 centers.
|
Relationships (1)
completes its integration of KinderCare
Key Quotes (3)
"From 2006 to 2011 KLC OpCo projects that revenue from the ECE centers will grow at a 7.2% CAGR."Source
HOUSE_OVERSIGHT_024527.jpg
Quote #1
"KLC OpCo expects a net reduction of centers in 2006 and 2007 as it completes its integration of KinderCare and the rationalization of its properties."Source
HOUSE_OVERSIGHT_024527.jpg
Quote #2
"The sale of additional products and services is expected to generate approximately 2.2% of total revenue in 2011"Source
HOUSE_OVERSIGHT_024527.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (2,400 characters)
KLC OpCo
($ in millions) 2006P 2007P 2008P 2009P 2010P 2011P
ECE Centers $1,488.7 $1,572.8 $1,668.4 $1,797.1 $1,947.4 $2,111.1
School Partnerships 55.5 66.6 79.9 95.9 115.1 138.1
KC Distance Learning 13.6 17.1 21.3 26.7 33.3 41.6
Total Revenue $1,557.8 $1,656.5 $1,769.6 $1,919.7 $2,095.8 $2,290.8
($ in millions) 2006P 2007P 2008P 2009P 2010P 2011P
ECE Centers $1,488.7 $1,572.8 $1,668.4 $1,797.1 $1,947.4 $2,111.1
School Partnerships 55.5 66.6 79.9 95.9 115.1 138.1
KC Distance Learning 13.6 17.1 21.3 26.7 33.3 41.6
Total Revenue $1,557.8 $1,656.5 $1,769.6 $1,919.7 $2,095.8 $2,290.8
Sales Growth
From 2006 to 2011 KLC OpCo projects that revenue from the ECE centers will grow at a 7.2% CAGR.
The growth forecast is based on the following assumptions:
The growth forecast is based on the following assumptions:
▪ Tuition growth. KLC OpCo projects that tuition rates at existing centers will grow at
approximately 4% per year for the next five years. This growth is below recent experience
(6.9% in 2005). Moreover, tuition rates in the industry have been growing at average rates of
greater than 4%.
approximately 4% per year for the next five years. This growth is below recent experience
(6.9% in 2005). Moreover, tuition rates in the industry have been growing at average rates of
greater than 4%.
▪ Utilization improvement. Management projects that recent improvements witnessed at KLC
OpCo will continue. By 2011, KLC OpCo projects Utilization will have increased to 65.2%.
Management believes these improvements in Utilization will be the result of expected
favorable demographic trends (described elsewhere in this Memorandum), new sales training
programs, re-branding efforts in selected markets combined with the opening of appropriately
sized centers.
OpCo will continue. By 2011, KLC OpCo projects Utilization will have increased to 65.2%.
Management believes these improvements in Utilization will be the result of expected
favorable demographic trends (described elsewhere in this Memorandum), new sales training
programs, re-branding efforts in selected markets combined with the opening of appropriately
sized centers.
▪ New centers. KLC OpCo expects a net reduction of centers in 2006 and 2007 as it
completes its integration of KinderCare and the rationalization of its properties. Beginning in
2008, KLC OpCo projects to be adding net centers.
completes its integration of KinderCare and the rationalization of its properties. Beginning in
2008, KLC OpCo projects to be adding net centers.
KLC OpCo
2005PF 2006P 2007P 2008P 2009P 2010P 2011P
Utilization 61.2% 62.2% 63.0% 63.5% 63.9% 64.5% 65.2%
2005PF 2006P 2007P 2008P 2009P 2010P 2011P
Utilization 61.2% 62.2% 63.0% 63.5% 63.9% 64.5% 65.2%
Average Weekly Tuition $167.35 $173.68 $179.99 $188.37 $197.47 $206.95 $216.52
% Growth -- 3.7% 3.6% 4.7% 4.8% 4.8% 4.6%
% Growth -- 3.7% 3.6% 4.7% 4.8% 4.8% 4.6%
Center Count
Beginning of Period 2,021 1,934 1,894 1,878 1,890 1,925 1,963
New Center Additions 10 10 24 52 75 78 80
Closures (97) (50) (40) (40) (40) (40) (40)
End of Period 1,934 1,894 1,878 1,890 1,925 1,963 2,003
Beginning of Period 2,021 1,934 1,894 1,878 1,890 1,925 1,963
New Center Additions 10 10 24 52 75 78 80
Closures (97) (50) (40) (40) (40) (40) (40)
End of Period 1,934 1,894 1,878 1,890 1,925 1,963 2,003
Additional Products and Services
KLC OpCo plans to use its footprint of approximately 2,000 centers across the U.S. as a platform to sell
additional educational (e.g., supplemental phonics, math, Spanish and music courses) and non-
educational (e.g., health insurance, childcare financing) products and services. The sale of additional
products and services is expected to generate approximately 2.2% of total revenue in 2011, which is
included in the ECE center projections.
additional educational (e.g., supplemental phonics, math, Spanish and music courses) and non-
educational (e.g., health insurance, childcare financing) products and services. The sale of additional
products and services is expected to generate approximately 2.2% of total revenue in 2011, which is
included in the ECE center projections.
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