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1.38 MB
Extraction Summary
1
People
4
Organizations
1
Locations
2
Events
1
Relationships
3
Quotes
Document Information
Type:
Financial report / corporate analysis (house oversight production)
File Size:
1.38 MB
Summary
This document is page 77 of a larger report (likely produced to the House Oversight Committee) detailing the financial results of KLC (Knowledge Learning Corporation) for fiscal year 2005. It discusses operating expenses, a real estate transaction between KLC OpCo and KLC PropCo involving $96 million in rent, seasonality of school enrollments, and reports $1.48 billion in revenue and $238 million in Adjusted EBITDA. No specific individuals or direct mentions of Epstein appear on this page, though KLC was an Apollo Global Management portfolio company.
People (1)
| Name | Role | Context |
|---|---|---|
| KLC Management | Management |
Mentioned as overseeing operations, anticipating costs, and focusing marketing efforts.
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Organizations (4)
| Name | Type | Context |
|---|---|---|
| KLC |
Knowledge Learning Corporation (implied by context of classrooms/enrollment); main subject of the financial report.
|
|
| KLC OpCo |
Operating Company; leasing centers from KLC PropCo.
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| KLC PropCo |
Property Company; holds title to real property and leases to KLC OpCo.
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| House Oversight Committee |
Implied by the document stamp 'HOUSE_OVERSIGHT'.
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Timeline (2 events)
Locations (1)
| Location | Context |
|---|---|
|
Refers to KLC's center base.
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Relationships (1)
KLC OpCo, which is leasing centers from KLC PropCo
Key Quotes (3)
"KLC's management believes its large, combined nationwide center base gives it the ability to leverage the costs of programs and services"Source
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Quote #1
"The Real Estate Transaction did not affect consolidated rent expense, but resulted in an increase of approximately $96.0 million in annual rent expense of KLC OpCo"Source
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Quote #2
"Revenue increased to $1.48 billion in 2005, which represents an increase of $35.6 million over 2004."Source
HOUSE_OVERSIGHT_024510.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (1,981 characters)
Other costs recorded at the center level include rent, marketing, maintenance, utilities, transportation, classroom and office supplies, insurance and food. KLC's management believes its large, combined nationwide center base gives it the ability to leverage the costs of programs and services, such as curriculum development, training programs and other management processes.
During fiscal year 2005, KLC experienced a reduction in projected claims costs for its self-insurance programs. However, management anticipates that premium and claims costs will continue to reflect market forces, which are beyond KLC's control.
The Real Estate Transaction did not affect consolidated rent expense, but resulted in an increase of approximately $96.0 million in annual rent expense of KLC OpCo, which is leasing centers from KLC PropCo which now has title to substantially all of KLC's owned real property.
Other Operating Expenses
KLC's other operating expenses include the costs associated with the field management and corporate oversight and support of its centers and restructuring related expenses. Labor related costs are the largest component of KLC's general and administrative expenses.
Seasonality
New enrollments are generally highest during the traditional fall "back to school" period and after the calendar year-end holidays. KLC attempts to focus its marketing efforts to support these periods of high reenrollments. Enrollment generally decreases somewhat during the summer months and the calendar year-end holidays.
Results Discussion
Revenue increased to $1.48 billion in 2005, which represents an increase of $35.6 million over 2004. Gross margin was $340.7 million during the 52 weeks ended December 31, 2005, an increase of $11.1 million, or 3.4%, compared to the same period last year. Adjusted EBITDA during the 52 weeks ended December 31, 2005, was $238.0 million which was $6.6 million, or 2.9%, above the same period in 2004.
77
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