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Extraction Summary
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People
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Organizations
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Locations
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Events
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Relationships
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Quotes
Document Information
Type:
Business presentation / investment memorandum / due diligence report
File Size:
Summary
This document is a page from a business presentation or due diligence report regarding 'KLC OpCo' and 'k12', focusing on their educational business model and real estate assets. It highlights a $70 million investment in a technology platform, accreditation by NAEYC, and a real estate portfolio of 845 owned centers valued at approximately $1.25 billion, managed in partnership with Greenstreet Real Estate Partners. The document appears to be part of a financial analysis likely related to investments or acquisitions involving these entities.
People (1)
| Name | Role | Context |
|---|---|---|
| Management | Executives of KLC OpCo |
Believes centers are compliant with NAEYC requirements
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Organizations (4)
| Name | Type | Context |
|---|---|---|
| KLC OpCo |
Operating company focusing on education services, proprietary curriculum, and center management
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| k12 |
Mentioned as having a compelling business model and value proposition
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| National Association for the Education of Young Children (NAEYC) |
Accredits 43% of KLC OpCo's centers
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| Greenstreet Real Estate Partners |
Long term partnership for managing real estate assets
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Timeline (1 events)
2001
Passing of the 'No Child Left Behind Act'
USA
U.S. Government
Locations (1)
| Location | Context |
|---|---|
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State of education across the U.S. is generating concerns
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Relationships (2)
Long term partnership... ensuring state-of-the-art management of the real estate assets
43% of KLC OpCo's centers... are accredited by the National Association for the Education of Young Children
Key Quotes (4)
"43% of KLC OpCo's centers, over four times the industry average of 10%, are accredited by the National Association for the Education of Young Children"Source
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Quote #1
"With $70 million invested in the development of the platform for kindergarten to 9th grade classes"Source
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Quote #2
"845 owned centers recently appraised at approximately $1.25 billion"Source
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Quote #3
"Long term partnership with Greenstreet Real Estate Partners ensuring state-of-the-art management of the real estate assets"Source
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Quote #4
Full Extracted Text
Complete text extracted from the document (2,944 characters)
KLC OpCo has leveraged its scale and operational expertise to roll out a proprietary curriculum and to provide enhanced corporate level services
— Curriculum has been developed, rolled out and refined over many years and provides a significant competitive advantage in an industry where small independent players do not have the resources to develop comparable programs.
— Operational leverage allows for enhanced marketing, back-office, legal and compliance functions, keeping KLC OpCo at the forefront of education standards.
— Curriculum has been developed, rolled out and refined over many years and provides a significant competitive advantage in an industry where small independent players do not have the resources to develop comparable programs.
— Operational leverage allows for enhanced marketing, back-office, legal and compliance functions, keeping KLC OpCo at the forefront of education standards.
Controls that meet or exceed requirements established by licensing authorities, state and federal government and accrediting bodies
— Controls include rigorous and stringent hiring procedures and uniform rules for conduct.
— 43% of KLC OpCo's centers, over four times the industry average of 10%, are accredited by the National Association for the Education of Young Children (referred to herein as "NAEYC"), the nation's leading accreditation body. Management believes that all the Company's centers' operations and policies meet or are substantially compliant with NAEYC accreditation requirements.
— Controls include rigorous and stringent hiring procedures and uniform rules for conduct.
— 43% of KLC OpCo's centers, over four times the industry average of 10%, are accredited by the National Association for the Education of Young Children (referred to herein as "NAEYC"), the nation's leading accreditation body. Management believes that all the Company's centers' operations and policies meet or are substantially compliant with NAEYC accreditation requirements.
■ A compelling business model at k12
As the state of education across the U.S. is generating increasing concerns. k12 provides a compelling value proposition
— Children continue to perform poorly on assessment tests geared to measure reading, writing and math skills. The passing of legislation such as the "No Child Left Behind Act of 2001" which, among other things, provides for increased funding for education and implementation of achievement level standards, demonstrates the commitment of government to address the issue.
— Children continue to perform poorly on assessment tests geared to measure reading, writing and math skills. The passing of legislation such as the "No Child Left Behind Act of 2001" which, among other things, provides for increased funding for education and implementation of achievement level standards, demonstrates the commitment of government to address the issue.
Technology and content platform easily leverageable to provide results-driven curriculum and service
— With $70 million invested in the development of the platform for kindergarten to 9th grade classes, extension of the offering into new states and schools is expected to be achieved at relatively low costs.
— k12 benefits from stable demand for its curriculum and services which is reflected by current reenrollment rates of 65% to 70%.
— Many of the direct costs are semi-fixed in nature (e.g., school administration) creating strong economies of scale as this business continues to grow.
— With $70 million invested in the development of the platform for kindergarten to 9th grade classes, extension of the offering into new states and schools is expected to be achieved at relatively low costs.
— k12 benefits from stable demand for its curriculum and services which is reflected by current reenrollment rates of 65% to 70%.
— Many of the direct costs are semi-fixed in nature (e.g., school administration) creating strong economies of scale as this business continues to grow.
■ Valuable real estate portfolio of centers providing solid asset base
845 owned centers recently appraised at approximately $1.25 billion¹²
— New organization separating management of real estate assets allows KLC OpCo education teams to focus on the core education business.
— Long term partnership with Greenstreet Real Estate Partners ensuring state-of-the-art management of the real estate assets by a leader in this field.
— New organization separating management of real estate assets allows KLC OpCo education teams to focus on the core education business.
— Long term partnership with Greenstreet Real Estate Partners ensuring state-of-the-art management of the real estate assets by a leader in this field.
¹² Actual appraisal was for 713 out of 845 centers and the appraised value was $1.1 billion. The $1.25 billion is achieved by taking the independent appraisal valuation methodology and extrapolating it to the remaining 132 centers.
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