Post on 26-Dec-2015
K12 Inc. Overview
K12 Background
• Founded in 1999 – based in Herndon, Virginia
• An education company building a comprehensive, research- and
standards-based curriculum and learning program that combines
traditional content with innovative technology.
• The nation’s leading provider of proprietary curriculum and online
education programs to students grades K through12.
• More than 80,000 students are using the K12 academic program in 27
states (plus D.C.) and other e-learning programs throughout the
world.
• Committed to providing a self-paced learning environment that will
help each child reach his/her true, individual potential.
• Ticker symbol – LRN (IPO December 2007)
K12 Inc. Curriculum and Technology
• Curriculum is specifically designed for technology-based learning by group of national experts
• Individualized learning approach – utilizes more than 21,000 discrete lessons and 185 K-12 courses
• Innovative technologies to improve learning by flash animation, online interactivity and real time individualized feedback
• Integrated offline learning kits including text books, art supplies, laboratory supplies and other reference materials
• Leverages flexible online platform to continually refine and update curriculum on a real time basis
K12’s curriculum (and technology platforms)
Online Learning System (OLS)
Student Administration System (SAMS)
Content Management System (CMS)
Order Management System (OMS)
New Web-based software platform that provides access to online lessons, adaptive learning features, lesson planning and scheduling tools for parents and teachers
Stores confidential student and teacher information, such as names, addresses and other personal information
Generates orders for offline learning kits and computers to be delivered to students
New state-of-the-art CMS enhances productivity and enables more flexibility. Supports student level assessment and detailed individualized lesson plans.
Learning Systems
KC Distance Learning (KCDL)
• Aventa Learning accommodates a broad range of technical environments and implementation models for grades 6-12
• Flexibility to modify or edit content when necessary• Aventa curriculum can provide students with
– GED Prep– Credit Recovery
American Education Corporation (AEC)
• A+ offers a powerful assessment capability linked to state standards in grades K-12 that can prescribe content or enabling a modular solution in which the objectives within each “curriculum title” can be customized, broken apart, re-sequenced and combined with objectives from other curriculum titles.
• 143 courses with about 5,300 lessons• Installed in 6,400 sites• AEC provides the A+ brand of online courseware to schools and
districts, selling primarily through a network of distributors covering all 50 states
K12 Partnerships and Joint Ventures
Middlebury Interactive Languages, LLC (MIL)
• K12 Inc. owns 60% and Middlebury College owns 40% of MIL • World language education for grades 3-12 and adults• Access to curriculum
– Full-immersion or supplemental online learning courses in classrooms– Full-immersion summer residency program– Courses to help teachers become more effective language educators
Web International English (Web)
• K12 Inc. has 20% minority interest in Web• Since 1998, Web has been a leader in English language training for thousands of learners
of all ages throughout China (~ 45,000 students)• Web’s learning centers provide sophisticated computer-based instruction with classroom
sessions to develop and improve students’ English skills.
Post-Secondary (Higher Education)
12
• Capital Education is a wholly-owned subsidiary of K12 Inc.
• Full-service provider of online learning programs for higher education
• Cap Ed can help launch, expand, and/or operate a high-quality online
learning program.
• CapEd's platform encourages discussions and real-world applications
through interactive social media, while keeping students connected to
classmates and instructors.
Capital Education (Cap Ed)
Blackboard Partnership
• K12 signed a distribution agreement with Blackboard to offer remediation courses to colleges
• Blackboard brings relationships and distribution channels with colleges
• Partnership uses technology to create a more engaging and effective experience for remediation courses that can be used at any Institution
• 70% of entering college freshmen are in need of remediation
• K12 can do it better and less expensively than colleges can based on K12’s curriculum and content
• First pilots should begin this spring
How our products and services are used in the market
…through a continuum of online learning options.
K12 Online Learning Capabilities and Solutions
15
CVCS
K12’s U.S. Public Schools
More than 80,000 students in 27 states (plus DC)
Students in ~60 countries also use K12
Where is Technology Heading?
• Full Time Virtual Schools will be ubiquitous serving a percentage of the overall student population
• Every High School student will be taking an online course within a decade
• Teaching using technology based curriculum will be the norm
• Curriculum will be in multiple languages
• Courses will become far more engaging and integrate more interactivity, simulations and games
• Technology will link the classroom and the home
• Instruction will become more individualized
• A large portion of college will be online
Online Learning is mainstream and the future of education
K12 Financials (Overview)
Track Record of K12 Growth
Revenue($ in millions)
Average Enrollment
FY’11 guidance from November 9, 2010 earnings call: Revenue over $500 million, Operating Income of over $28 million and EBITDA of over $70 million after one-time charges.