<SEC-DOCUMENT>0001157523-18-001758.txt : 20180807
<SEC-HEADER>0001157523-18-001758.hdr.sgml : 20180807
<ACCEPTANCE-DATETIME>20180807163033
ACCESSION NUMBER:		0001157523-18-001758
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180807
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180807
DATE AS OF CHANGE:		20180807

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			K12 INC
		CENTRAL INDEX KEY:			0001157408
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-EDUCATIONAL SERVICES [8200]
		IRS NUMBER:				954774688
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33883
		FILM NUMBER:		18998530

	BUSINESS ADDRESS:	
		STREET 1:		2300 CORPORATE PARK DRIVE
		CITY:			HERNDON
		STATE:			VA
		ZIP:			20171
		BUSINESS PHONE:		7034837000

	MAIL ADDRESS:	
		STREET 1:		2300 CORPORATE PARK DRIVE
		CITY:			HERNDON
		STATE:			VA
		ZIP:			20171
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a51848564.htm
<DESCRIPTION>K12 INC. 8-K
<TEXT>
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    <p style="text-align: center">
      <br>
      <font style="font-family: Times New Roman; font-size: 13pt"><b>UNITED
      STATES</b></font><b><font style="font-family: Times New Roman; font-size: 13pt"><br style="font-size: 13pt; font-family: Times New Roman"></font><font style="font-family: Times New Roman; font-size: 13pt">SECURITIES
      AND EXCHANGE COMMISSION</font></b><br><font style="font-family: Times New Roman; font-size: 10pt">WASHINGTON,
      D.C. 20549</font><br><br><font style="font-family: Times New Roman; font-size: 18pt"><b>FORM
      8-K</b></font><br><br><font style="font-family: Times New Roman; font-size: 12pt">CURRENT
      REPORT</font><br><br><font style="font-family: Times New Roman; font-size: 10pt">Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934</font><br><br>
    </p>
    <div style="text-align:center">
    <table style="margin-left:auto;margin-right:auto; margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="width: 10%">
          &#160;
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 40%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px; font-size: 10pt">
            Date of Report (Date of Earliest Event Reported):
          </p>
        </td>
        <td style="width: 20%">
          &#160;
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 20%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px; font-size: 10pt">
            <font style="font-size: 10pt; font-family: Times New Roman">August
            7, 2018</font>
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
    </table>
    </div>
    <div style="text-align:center">
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          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; width: 50%; border-bottom-style: solid" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px; font-size: 10pt">
            <font style="font-size: 24pt; font-family: Times New Roman">K12
            Inc.</font>
          </p>
        </td>
        <td style="width: 25%">

        </td>
      </tr>
      <tr>
        <td style="width: 25%">

        </td>
        <td style="text-align: center; padding-left: 0.0px; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px; font-size: 10pt">
            <font style="font-size: 10pt; font-family: Times New Roman">(Exact
            name of registrant as specified in its charter)</font>
          </p>
        </td>
        <td style="width: 25%">

        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
    <div style="text-align:center">
    <table style="margin-left:auto;margin-right:auto; margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; width: 32%; border-bottom-style: solid" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Delaware
          </p>
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; width: 32%; border-bottom-style: solid" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            001-33883
          </p>
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; width: 32%; border-bottom-style: solid" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            95-4774688
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px; width: 32%" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (State or other jurisdiction
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            of incorporation)
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: center; padding-left: 0.0px; width: 32%" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Commission
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            File Number)
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: center; padding-left: 0.0px; width: 32%" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (I.R.S. Employer
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            Identification No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="text-align:center">
    <table style="margin-left:auto;margin-right:auto; margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; width: 50%; border-bottom-style: solid" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            2300 Corporate Park Drive, Herndon,<br>Virginia
          </p>
        </td>
        <td style="width: 20%">
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; width: 30%; border-bottom-style: solid" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            20171
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px; width: 50%" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman">(Address
            of principal executive offices)</font>
          </p>
        </td>
        <td style="width: 20%">

        </td>
        <td style="text-align: center; padding-left: 0.0px; width: 30%" valign="bottom">
          <font style="font-size: 10pt; font-family: Times New Roman">(Zip
          Code)</font>
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="text-align: center; padding-left: 0.0px; width: 50%" valign="top">
          Registrant&#8217;s telephone number, including area code:
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 20%" valign="bottom">
          &#160;
        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; width: 30%" valign="top">
          (703) 483-7000
        </td>
      </tr>
    </table>
    </div>
    <div style="text-align:center">
    <table style="margin-left:auto;margin-right:auto; margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="width: 25%">
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; width: 50%; border-bottom-style: solid" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Not Applicable
          </p>
        </td>
        <td style="width: 25%">

        </td>
      </tr>
      <tr>
        <td style="width: 25%">

        </td>
        <td style="text-align: center; padding-left: 0.0px; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Former name or former address, if changed since last report
          </p>
        </td>
        <td style="width: 25%">

        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <hr style="text-align: center; color: #000000; width: 100%; height: 1.0 pt">


    <p>
      Indicate by check mark whether the registrant is an emerging growth
      company as defined in Rule&#160;405 of the Securities Act of 1933 (&#167;230.405
      of this chapter) or Rule&#160;12b-2 of the Securities Exchange Act of 1934
      (&#167;240.12b-2 of this chapter).
    </p>
    <p>
      Emerging growth company&#160;<font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
    </p>
    <p>
      If an emerging growth company, indicate by check mark if the registrant
      has elected not to use the extended transition period for complying with
      any new or revised financial accounting standards provided pursuant to
      Section&#160;13(a)&#160;of the Exchange Act.&#160;<font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: left">

    </p>
    <p>
      <b>Item 2.02. Results of Operations and Financial Condition</b>
    </p>
    <p style="text-indent: 30.0px; font-size: 10pt">
      On August 7, 2018, K12 Inc. (the &#8220;Company&#8221;) issued a press release
      announcing its financial results for the fourth fiscal quarter and full
      fiscal year ended June 30, 2018.&#160;&#160;A copy of the Company&#8217;s press release
      is furnished herewith as Exhibit 99.1.
    </p>
    <p style="text-indent: 30.0px; font-size: 10pt">
      The information contained in this Current Report of Form 8-K, including
      Exhibit 99.1, is being furnished and shall not be deemed &#8220;filed&#8221; by the
      Company with the Securities and Exchange Commission and shall not be
      deemed incorporated by reference into any filing by the Company under
      the U.S. Securities Act of 1933, as amended.
    </p>
    <p>
      <b>Item 9.01. Financial Statements and Exhibits</b>
    </p>
    <p style="text-indent: 30.0px; font-size: 10pt">
      (d) Exhibits.
    </p>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; width: 10%; border-bottom-style: solid" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Exhibit No.</b>
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 2%; padding-bottom: 2.0px" valign="top">
          &#160;
        </td>
        <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; width: 78%; border-bottom-style: solid" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Description</b>
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td style="width: 10%">

        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 78%">

        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 10%" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; width: 10%" valign="top">
          99.1
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top" colspan="2">
          <p>
            K12 Inc. Earnings Press Release, dated August 7, 2018.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="white-space: nowrap">

    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">
      <br>
      <font style="font-size: 10pt; font-family: Times New Roman">SIGNATURES</font><br>
    </p>
    <p style="text-indent: 30.0px; font-size: 10pt">
      <font style="font-size: 10pt; font-family: Times New Roman">Pursuant to
      the requirements of the Securities Exchange Act of 1934, as amended, the
      registrant has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <div style="text-align:center">
    <table style="margin-left:auto;margin-right:auto; margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="width: 25%">

        </td>
        <td style="text-align: right; padding-left: 0.0px; width: 25%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            K12 Inc.
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 25%">

        </td>
        <td style="width: 25%">

        </td>
        <td style="width: 7%">

        </td>
        <td style="width: 43%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; width: 25%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Date:
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 25%" valign="top">
          August 7, 2018
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 7%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            By:
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 43%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u>/s/ Howard D. Polsky</u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 25%">

        </td>
        <td style="width: 25%">

        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 7%" valign="top">
          Name:
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 43%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Howard D. Polsky
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 25%">

        </td>
        <td style="width: 25%">

        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 7%" valign="top">
          Title:
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 43%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            General Counsel and Secretary
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">
      <br>
      Exhibit Index
    </p>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 10pt" cellspacing="0">
      <tr>
        <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; width: 10%; border-bottom-style: solid" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Exhibit No.</b>
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 2%; padding-bottom: 2.0px" valign="top">
          &#160;
        </td>
        <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; width: 78%; border-bottom-style: solid" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Description</b>
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td style="width: 10%">

        </td>
        <td style="width: 2%">

        </td>
        <td style="width: 78%">

        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 10%" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; width: 10%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <a href="a51848564ex99_1.htm">99.1</a>
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <a href="a51848564ex99_1.htm">K12 Inc. Earnings Press Release,
            dated August 7, 2018.</a>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
  </body>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51848564ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2018 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 8pt; font-family: Times New Roman">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>K12 Inc.
      Reports Full Year Fiscal 2018 Revenue Increases 3.3% to $917.7 Million</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>Free Cash
      Flow Rises 49.1% to $60.4 Million</b></font>
    </p>
    <p>
      HERNDON, Va.--(BUSINESS WIRE)--August 7, 2018--K12 Inc. (NYSE: LRN), a
      technology-based education company and leading provider of online
      curriculum and online school programs for students in pre-K through high
      school, today announced its results for the fourth fiscal quarter and
      full fiscal year ended June 30, 2018.
    </p>
    <p>
      <b>Financial Highlights for the Three Months Ended June 30, 2018 (Fourth
      Quarter Fiscal Year 2018)</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Revenues of $238.9 million, compared to $215.8 million in the fourth
        quarter of FY 2017.
      </li>
      <li style="margin-bottom: 10.0px">
        Operating income of $9.9 million, compared to $4.7 million in the
        fourth quarter of FY 2017.
      </li>
      <li style="margin-bottom: 10.0px">
        Net income attributable to common stockholders of $9.3 million,
        compared to a net loss of $6.5 million in the fourth quarter of FY
        2017.
      </li>
      <li style="margin-bottom: 10.0px">
        Diluted net income attributable to common stockholders per share of
        $0.23, compared to a diluted net loss of $0.17 in the fourth quarter
        of FY 2017.
      </li>
    </ul>
    <p>
      To supplement our financial statements presented in accordance with
      Generally Accepted Accounting Principles (GAAP), we are also presenting
      adjusted operating income and adjusted EBITDA. Management believes that
      these additional metrics provide useful information to our investors as
      an indicator of performance because they exclude non-cash stock-based
      compensation expense. Non-GAAP Financial Highlights for the three months
      ended June 30, 2018 (Fourth Quarter Fiscal Year 2018) are as follows.
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Adjusted operating income of $15.8 million, compared to $12.8 million
        in the fourth quarter of FY 2017.
      </li>
      <li style="margin-bottom: 10.0px">
        Adjusted EBITDA of $33.5 million, compared to $30.7 million in the
        fourth quarter of FY 2017.
      </li>
    </ul>
    <p>
      <b>Financial Highlights for the Year Ended June 30, 2018</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Revenues of $917.7 million, compared to $888.5 million for the full
        fiscal year of 2017.
      </li>
      <li style="margin-bottom: 10.0px">
        Operating income of $25.5 million, compared to $13.1 million for the
        full fiscal year of 2017.
      </li>
      <li style="margin-bottom: 10.0px">
        Net income attributable to common stockholders of $27.6 million,
        compared to $0.5 million for the full fiscal year of 2017.
      </li>
      <li style="margin-bottom: 10.0px">
        Diluted net income attributable to common stockholders per share of
        $0.68, compared to $0.01 for the full fiscal year of 2017.
      </li>
    </ul>
    <p>
      Non-GAAP Financial Highlights for the year ended June 30, 2018 are as
      follows.
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Adjusted operating income of $46.4 million, compared to $35.7 million
        for the full fiscal year of 2017.
      </li>
      <li style="margin-bottom: 10.0px">
        Adjusted EBITDA of $121.6 million, compared to $110.0 million for the
        full fiscal year of 2017.
      </li>
    </ul>
    <p>
      A reconciliation of these non-GAAP financial measures to the most
      directly comparable GAAP financial measures for these periods is
      provided below.
    </p>
    <p>
      <b>Liquidity</b>
    </p>
    <p>
      As of June 30, 2018, the Company had cash, cash equivalents and
      restricted cash of $233.1 million, an increase of $2.2 million compared
      to the $230.9 million reported at June 30, 2017.
    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <i><b>Share Buyback</b></i>
    </p>
    <p>
      On May 16, 2018, K12 announced that the Board of Directors had
      authorized the repurchase of 1.83 million shares of the Company&#8217;s common
      stock in a private block transaction at a price of $15.00 per share.
      This one-time purchase of $27.5 million was funded with cash on hand.
    </p>
    <p>
      <b>Capital Expenditures</b>
    </p>
    <p>
      Capital expenditures for the year ended June 30, 2018 were $43.1
      million, a decrease of $5.1 million from the prior year&#8217;s full fiscal
      year, and was comprised of:
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        $8.7 million for property and equipment,
      </li>
      <li style="margin-bottom: 10.0px">
        $24.5 million for capitalized software development, and
      </li>
      <li style="margin-bottom: 10.0px">
        $9.9 million for capitalized curriculum.
      </li>
    </ul>
    <p>
      <b>Revenue and Enrollment Data</b>
    </p>
    <p>
      <i><b>Revenue</b></i>
    </p>
    <p>
      The Company&#8217;s lines of business are &#8211; Managed Public School Programs
      (where K12 provides substantially all management, technology and
      academic support services in addition to curriculum, learning systems
      and instructional services), Institutional (Non-managed Public School
      Programs &#8211; curriculum, technology and other educational services where
      K12 does not provide primary administrative oversight, and Institutional
      Software and Services &#8211; educational software and services provided to
      school districts, public schools and other educational institutions),
      and Private Pay Schools and Other (private schools for which it charges
      student tuition and makes direct consumer sales) &#8211; The following table
      sets forth the Company&#8217;s revenues for the periods indicated:
    </p>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="top" colspan="6">
          <b>Three Months Ended June 30,</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="7">
          <b>Change 2018 / 2017</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="top" colspan="6">
          <b>Year Ended June 30,</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="7">
          <b>Change 2018 / 2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>2018</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>%</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>2018</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>$</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>%</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="32">
          <b>(In thousands, except percentages)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Managed Public School Programs</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          208,319
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          179,337
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          28,982
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          16.2
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          780,797
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          733,690
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          47,107
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          6.4
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Institutional</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Non-managed Public School Programs
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          12,384
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          13,402
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (1,018
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          -7.6
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          56,784
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          65,362
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (8,578
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          -13.1
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px; padding-bottom: 2.0px" valign="top">
          Institutional Software &amp; Services
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          9,352
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          14,741
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (5,389
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; padding-bottom: 2.0px" valign="bottom">
          -36.6
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; padding-bottom: 2.0px" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          43,852
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          53,709
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (9,857
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; padding-bottom: 2.0px" valign="bottom">
          -18.4
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; padding-bottom: 2.0px" valign="bottom">
          %
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Total Institutional</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          21,736
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          28,143
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (6,407
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          -22.8
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          100,636
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          119,071
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (18,435
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          -15.5
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Private Pay Schools and Other
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          8,819
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          8,278
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          541
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; padding-bottom: 2.0px" valign="bottom">
          6.5
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; padding-bottom: 2.0px" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          36,301
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          35,758
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          543
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; padding-bottom: 2.0px" valign="bottom">
          1.5
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; padding-bottom: 2.0px" valign="bottom">
          %
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          <b>Total</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          238,874
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          215,758
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          23,116
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; padding-bottom: 4.0px" valign="bottom">
          10.7
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; padding-bottom: 4.0px" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          917,734
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          888,519
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          29,215
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; padding-bottom: 4.0px" valign="bottom">
          3.3
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; padding-bottom: 4.0px" valign="bottom">
          %
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <i><b>Enrollment Data</b></i>
    </p>
    <p>
      The following table sets forth average enrollment data for the periods
      indicated. These figures exclude enrollments from classroom pilot
      programs and consumer programs.
    </p>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="4">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="5">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="4">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="5">

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="top" colspan="4">
          <b>Three Months Ended</b>

          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>June 30,</b>
          </p>
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="6">
          <b>2018 / 2017</b>
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="top" colspan="4">
          <b>Year Ended</b>

          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>June 30,</b>
          </p>
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="6">
          <b>2018 / 2017</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          (In thousands, except percentages)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-style: solid" valign="top" colspan="2">
          <b>Change</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Change %</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-style: solid" valign="top" colspan="2">
          <b>Change</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Change %</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Managed Public School Programs (1,2)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          105.0
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          97.4
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          7.6
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          7.8
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          108.7
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          103.7
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          5.0
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4.8
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Non-managed Public School Programs (1)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          23.1
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          28.9
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (5.8
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          -20.1
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          23.9
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          28.9
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (5.0
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          -17.3
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt" cellspacing="0">
      <tr>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="top">
          (1)
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          If a school changes from a Managed Public School Program to a
          Non-managed Public School Program, the corresponding enrollment
          classification would change in the period in which the contract
          arrangement changed.
        </td>
      </tr>
      <tr>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="top">
          (2)
        </td>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Managed Public School Programs may include enrollments for which K12
          receives no public funding or revenue.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <p>
      <i><b>Revenue per Enrollment Data</b></i>
    </p>
    <p>
      The following table sets forth revenue per average enrollment data for
      students in Public School Programs for the periods indicated.
    </p>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="top" colspan="6">
          <b>Three Months Ended</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="5">
          <b>Change</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="top" colspan="6">
          <b>Year Ended</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="6">
          <b>Change</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-style: solid" valign="top" colspan="6">
          <b>June 30,</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="5">
          <b>2018 / 2017</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-style: solid" valign="top" colspan="6">
          <b>June 30,</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="6">
          <b>2018 / 2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>2018</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          <b>$</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>%</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>2018</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>$</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>%</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Managed Public School Programs
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1,984
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1,841
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          143
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          7.8
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          7,183
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          7,075
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          108
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1.5
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Non-managed Public School Programs
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          536
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          464
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          72
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          15.5
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          2,376
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          2,262
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          114
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          5.0
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          %
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <p>
      <b>Fiscal Year 2019 Outlook</b>
    </p>
    <p>
      The Company will provide an outlook for fiscal 2019 results as part of
      the first quarter results report for fiscal year 2019. This first
      quarter results is planned to be published at or near the end of October
      2018. No separate guidance communication, or enrollment counts, for
      fiscal 2019 will be provided before that time.
    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <i><b>Special Note on Forward-Looking Statements</b></i>
    </p>
    <p>
      <i>This press release contains certain forward-looking statements within
      the meaning of the Private Securities Litigation Reform Act of 1995. We
      have tried, whenever possible, to identify these forward-looking
      statements using words such as &#8220;anticipates,&#8221; &#8220;believes,&#8221; &#8220;estimates,&#8221;
      &#8220;continues,&#8221; &#8220;likely,&#8221; &#8220;may,&#8221; &#8220;opportunity,&#8221; &#8220;potential,&#8221; &#8220;projects,&#8221;
      &#8220;will,&#8221; &#8220;expects,&#8221; &#8220;plans,&#8221; &#8220;intends&#8221; and similar expressions to
      identify forward looking statements, whether in the negative or the
      affirmative. These statements reflect our current beliefs and are based
      upon information currently available to us. Accordingly, such
      forward-looking statements involve known and unknown risks,
      uncertainties and other factors which could cause our actual results,
      performance or achievements to differ materially from those expressed
      in, or implied by, such statements. These risks, uncertainties, factors
      and contingencies include, but are not limited to: reduction of per
      pupil funding amounts at the schools we serve; inability to achieve
      sufficient levels of new enrollments to sustain or to grow our business
      model; failure of the schools we serve to comply with regulations
      resulting in a loss of funding, an obligation to repay funds previously
      received or contractual remedies; declines or variations in academic
      performance outcomes as curriculum and testing standards evolve; harm to
      our reputation resulting from poor performance or misconduct by
      operators or us in any school in our industry and in any school in which
      we operate; legal and regulatory challenges from opponents of virtual
      public education, public charter schools or for-profit education
      companies; discrepancies in interpretation of legislation by regulatory
      agencies that may lead to payment or funding disputes; termination of
      our contracts with schools due to a loss of authorizing charter; failure
      to enter into new school contracts or renew existing contracts, in part
      or in their entirety; unsuccessful integration of mergers, acquisitions
      and joint ventures; failure to further develop, maintain and enhance our
      technology, products, services and brands; inadequate recruiting,
      training and retention of effective teachers and employees; declines in
      enrollments due to teacher union activities; infringement of our
      intellectual property; entry of new competitors with superior
      competitive technologies and lower prices; disruptions to our
      Internet-based learning and delivery systems resulting from
      cyber-attacks; and other risks and uncertainties associated with our
      business described in the Company&#8217;s filings with the Securities and
      Exchange Commission. Although the Company believes the expectations
      reflected in such forward-looking statements are based upon reasonable
      assumptions, it can give no assurance that the expectations will be
      attained or that any deviation will not be material. All information in
      this release is as of June 30, 2018, and the Company undertakes no
      obligation to update any forward-looking statement to conform the
      statement to actual results or changes in the Company&#8217;s expectations.</i>
    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Conference Call</b>
    </p>
    <p>
      The Company will discuss its fourth quarter and full fiscal year 2018
      financial results during a conference call scheduled for Tuesday, August
      7, 2018 at 5:00 p.m. eastern time (ET).
    </p>
    <p>
      The conference call will be webcast and available at <u>http://public.viavid.com/index.php?id=130101</u>.
      Please access the web site at least 15 minutes prior to the start of the
      call.
    </p>
    <p>
      To participate in the live call, investors and analysts should dial
      (877) 407-4019 (domestic) or (201) 689-8337 (international) at 4:45 p.m.
      (ET). No passcode is required.
    </p>
    <p>
      A replay of the call will be available starting on August 7, 2018 at
      8:00 p.m. ET through September 7, 2018 at 8:00 p.m. ET, at (877)
      660-6853 (domestic) or (201) 612-7415 (international) using conference
      ID 13680817. A webcast replay of the call will be available at <u>http://public.viavid.com/index.php?id=130101</u>
      for 30 days.
    </p>
    <p>
      <b>Financial Statements</b>
    </p>
    <p>
      The financial statements set forth below are not the complete set of K12
      Inc.&#8217;s financial statements for the three months and full year ended
      June 30, 2018, and are presented below without footnotes. Readers are
      encouraged to obtain and carefully review K12 Inc.&#8217;s Form 10-K for the
      year ended June 30, 2018, including all financial statements contained
      therein and the footnotes thereto, filed with the SEC. The Form 10-K may
      be retrieved from the SEC's website at <u>www.sec.gov</u> or from K12
      Inc.&#8217;s website at <u>www.k12.com</u>.
    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt" cellspacing="0">
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="11">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>K12 INC.</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>CONSOLIDATED BALANCE SHEETS</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-style: solid" valign="top" colspan="8">
          <b>June 30,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="8">
          <b>(In thousands except share and per share data)</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          <b>ASSETS</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Current assets</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          231,113
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          230,864
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Accounts receivable, net of allowance of $12,384 and $14,791 at June
          30, 2018 and 2017, respectively
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          176,319
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          192,205
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Inventories, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          31,134
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          30,503
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Prepaid expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          10,278
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          8,006
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px; padding-bottom: 2.0px" valign="top">
          Other current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          10,388
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          12,004
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 50.0px" valign="top">
          <b>Total current assets</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          459,232
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          473,582
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Property and equipment, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          28,868
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          26,297
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Capitalized software, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          55,488
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          62,695
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Capitalized curriculum development costs, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          53,558
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          59,213
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Intangible assets, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          17,951
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          20,226
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Goodwill
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          90,197
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          87,214
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Deposits and other assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          36,669
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          6,057
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 50.0px; padding-bottom: 4.0px" valign="top">
          <b>Total assets</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          741,963
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          735,284
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          <b>LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS'
          EQUITY</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Current liabilities</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Current portion of capital lease obligations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          13,353
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          11,880
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Accounts payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          29,362
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          30,052
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Accrued liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          14,345
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          21,622
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Accrued compensation and benefits
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          36,050
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          29,367
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px; padding-bottom: 2.0px" valign="top">
          Deferred revenue
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          23,114
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          24,830
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 50.0px" valign="top">
          <b>Total current liabilities</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          116,224
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          117,751
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Capital lease obligations, net of current portion
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          12,665
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          10,025
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Deferred rent, net of current portion
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          3,270
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,157
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Deferred tax liability
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          12,577
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          16,726
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Other long-term liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          10,038
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          11,579
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 50.0px; padding-bottom: 2.0px" valign="top">
          <b>Total liabilities</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          154,774
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          160,238
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Redeemable noncontrolling interest</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          &#8212;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          700
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Stockholders&#8217; equity</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Common stock, par value $0.0001; 100,000,000 shares authorized;
          44,902,567 and 44,325,772 shares issued, and 39,567,824 and
          40,823,174 shares outstanding at June 30, 2018 and 2017, respectively
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Additional paid-in capital
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          703,351
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          690,488
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Accumulated other comprehensive loss
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (252
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (170
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Accumulated deficit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (13,432
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (40,976
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Treasury stock of 5,334,743 and 3,502,598 shares at cost at June 30,
          2018 and 2017, respectively
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (102,482
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (75,000
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Total stockholders&#8217; equity</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          587,189
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          574,346
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          <b>Total liabilities, redeemable noncontrolling interest and
          stockholders' equity</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          741,963
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          735,284
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt" cellspacing="0">
      <tr>
        <td colspan="20">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="20">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>K12 INC.</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>CONSOLIDATED STATEMENTS OF OPERATIONS</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="20">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="20">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="top" colspan="8">
          <b>Three Months Ended June 30,</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="top" colspan="7">
          <b>Year Ended June 30,</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="2">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="top" colspan="17">
          <b>(In thousands except share and per share data)</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Revenues</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          238,874
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          215,758
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          917,734
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          888,519
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Cost and expenses</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Instructional costs and services
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          157,087
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          139,244
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          592,495
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          557,316
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Selling, administrative, and other operating expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          69,939
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          68,791
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          290,446
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          305,617
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px; padding-bottom: 2.0px" valign="top">
          Product development expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          1,972
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          3,011
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          9,248
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          12,457
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Total costs and expenses</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          228,998
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          211,046
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          892,189
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          875,390
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Income from operations</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          9,876
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,712
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          25,545
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          13,129
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Impairment of investment in Web International Education Group,
          Ltd.</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          &#8212;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (10,000
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          &#8212;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (10,000
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Interest income, net</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          430
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          561
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          965
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          1,808
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Income (loss) before income taxes and noncontrolling interest</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          10,306
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (4,727
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          26,510
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,937
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Income tax benefit (expense)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (959
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (1,876
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          910
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (5,396
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Net income (loss)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          9,347
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (6,603
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          27,420
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (459
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Add net loss attributable to noncontrolling interest</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          &#8212;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          120
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          200
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          910
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          <b>Net income (loss) attributable to common stockholders</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          9,347
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          (6,483
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          27,620
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          451
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Net income (loss) attributable to common stockholders per share:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px; padding-bottom: 4.0px" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          0.24
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          (0.17
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          0.70
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          0.01
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px; padding-bottom: 4.0px" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          0.23
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          (0.17
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          0.68
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          0.01
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Weighted average shares used in computing per share amounts:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px; padding-bottom: 4.0px" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          39,031,207
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          38,757,312
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          39,282,674
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          38,298,581
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px; padding-bottom: 4.0px" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          39,976,593
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          38,757,312
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          40,637,744
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          39,500,934
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt" cellspacing="0">
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="11">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>K12 INC.</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>CONSOLIDATED STATEMENTS OF CASH FLOWS</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="11">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="top" colspan="8">
          <b>Year Ended June 30,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>2018</b>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="8">
          <b>(In thousands)</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Cash flows from operating activities</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Net income (loss)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          27,420
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (459
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Adjustments to reconcile net income (loss) to net cash provided
          by operating activities:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Depreciation and amortization expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          75,260
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          74,280
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Stock-based compensation expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          20,817
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          22,598
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Deferred income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (4,015
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (7,065
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Provision for doubtful accounts
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,089
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,512
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Impairment of investment in Web International Education Group, Ltd.
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          &#8212;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          10,000
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Other
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,822
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          4,286
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Changes in assets and liabilities:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Accounts receivable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          11,987
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (27,745
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Inventories, prepaid expenses and other current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (3,801
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1,323
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Deposits and other assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (24,690
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          10,020
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Accounts payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (2,336
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          5,317
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Accrued liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (8,092
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (4,963
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Accrued compensation and benefits
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          6,672
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (1,674
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Deferred revenue
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (2,077
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (1,135
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px; padding-bottom: 2.0px" valign="top">
          Deferred rent and other liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (2,429
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (567
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Net cash provided by operating activities</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          103,627
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          88,728
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Cash flows from investing activities</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Purchase of property and equipment
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (8,743
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (2,174
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Capitalized software development costs
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (24,533
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (26,918
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Capitalized curriculum development costs
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (9,927
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (19,132
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Acquisitions and investments
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (7,274
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (9,063
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px; padding-bottom: 2.0px" valign="top">
          Sale of trade name
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          &#8212;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          89
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Net cash used in investing activities</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (50,477
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (57,198
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Cash flows from financing activities</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Repayments on capital lease obligations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (13,301
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (15,697
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Purchase of treasury stock
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (27,482
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          &#8212;
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Proceeds from exercise of stock options
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          196
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          6,953
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Excess tax benefit from stock-based compensation
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          &#8212;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          291
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px; padding-bottom: 2.0px" valign="top">
          Repurchase of restricted stock for income tax withholding
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (10,314
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (6,191
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Net cash used in financing activities</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (50,901
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (14,644
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Effect of foreign exchange rate changes on cash, cash equivalents
          and restricted cash</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          &#8212;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (11
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Net change in cash, cash equivalents and restricted cash</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          2,249
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          16,875
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          <b>Cash, cash equivalents and restricted cash, beginning of period</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          230,864
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          213,989
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          <b>Cash, cash equivalents and restricted cash, end of period</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          <b>$</b>
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          233,113
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          230,864
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          <b>Reconciliation of cash, cash equivalents and restricted cash to
          balance sheet:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px" valign="top">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          231,113
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          230,864
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 25.0px; padding-bottom: 2.0px" valign="top">
          Deposits and other assets (restricted cash)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          2,000
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          &#8212;
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 50.0px; padding-bottom: 4.0px" valign="top">
          <b>Total cash, cash equivalents and restricted cash</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          233,113
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          230,864
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Non-GAAP Financial Measures</b>
    </p>
    <p>
      To supplement our financial statements presented in accordance with
      Generally Accepted Accounting Principles (GAAP), we have presented
      adjusted operating income (loss), adjusted EBITDA, and Free Cash Flow.
      These measures are not measurements recognized under GAAP.
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Adjusted operating income (loss) is defined as income (loss) from
        operations as adjusted for stock-based compensation.
      </li>
      <li style="margin-bottom: 10.0px">
        Adjusted EBITDA is defined as net income (loss) attributable to common
        stockholders as adjusted for interest income (expense), net;
        impairment of investment in Web International Education Group, Ltd.;
        income tax benefit (expense); noncontrolling interest; stock-based
        compensation; and depreciation and amortization. Interest income
        (expense) primarily consists of interest expense for capital leases
        and interest income on customer receivables.
      </li>
      <li style="margin-bottom: 10.0px">
        Adjusted EBITDA and adjusted operating income (loss) exclude
        stock-based compensation, which consists of expenses for stock
        options, restricted stock, restricted stock units, and performance
        stock units.
      </li>
      <li style="margin-bottom: 10.0px">
        Free Cash Flow is defined as net cash provided by (used in) operating
        activities less purchase of property and equipment; capitalized
        software development costs; and capitalized curriculum development
        costs.
      </li>
    </ul>
    <p>
      This information should be considered as supplemental in nature and
      should not be considered in isolation or as a substitute for the related
      financial information prepared in accordance with GAAP. Management
      believes that the presentation of these non-GAAP measures provides
      useful information to investors regarding our results of operations
      because it is an indicator of performance with the removal of
      stock-based compensation which assists both investors and management in
      analyzing and benchmarking the performance and value of our business.
    </p>
    <p>
      We believe adjusted EBITDA is useful to an investor in evaluating our
      operating performance because it is both widely used to measure a
      company's operating performance without regard to items such as
      depreciation and amortization, which can vary depending upon accounting
      methods and the book value of assets, and to present a meaningful
      measure of corporate performance exclusive of our capital structure and
      the method by which assets were acquired.
    </p>
    <p>
      Our management uses adjusted EBITDA and adjusted operating income (loss):
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        as an additional measurement of operating performance because it
        assists us in comparing our performance on a consistent basis;
      </li>
      <li style="margin-bottom: 10.0px">
        in presentations to the members of our Board of Directors to enable
        our Board to have the same measurement basis of operating performance
        as is used by management to compare our current operating results with
        corresponding prior periods and with the results of other companies in
        our industry; and
      </li>
      <li style="margin-bottom: 10.0px">
        as consistent with lending covenants on our line of credit.
      </li>
    </ul>
    <p>
      Other companies may define these non-GAAP measures differently and, as a
      result, our use of these non-GAAP measures may not be directly
      comparable to adjusted EBITDA, and adjusted operating income (loss) used
      by other companies. Although we use these non-GAAP measures as financial
      measures to assess the performance of our business, the use of non-GAAP
      measures is limited as they include and/or do not include certain items
      not included and/or included in the most directly comparable GAAP
      measure.
    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Adjusted EBITDA and adjusted operating income (loss) should be
      considered in addition to, and not as a substitute for, income or loss
      from operations, net income or loss, and earnings or loss per share
      prepared in accordance with GAAP as a measure of performance. Adjusted
      EBITDA is not intended to be a measure of liquidity. You are cautioned
      not to place undue reliance on these non-GAAP measures.
    </p>
    <p>
      A reconciliation of these non-GAAP financial measures to the most
      directly comparable GAAP financial measures is provided below.
    </p>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-style: solid" valign="top" colspan="8">
          <b>Three Months Ended June 30,</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-style: solid" valign="top" colspan="8">
          <b>Year Ended June 30,</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>2018</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>2017</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>2018</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="18">
          <b>(In thousands)</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Net income (loss) attributable to common stockholders
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          9,347
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (6,483
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          27,620
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          $
        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          451
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Interest income, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (430
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (561
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (965
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (1,808
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Impairment of investment in Web International Education Group, Ltd.
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          10,000
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          10,000
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Income tax (benefit) expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          959
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          1,876
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (910
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          5,396
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Noncontrolling interest
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (120
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (200
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (910
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Stock-based compensation expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          5,964
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          8,041
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          20,817
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          22,598
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          Adjusted operating income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          15,840
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          12,753
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          46,362
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          35,727
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Depreciation and amortization
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          17,648
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          17,955
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          75,260
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          74,280
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          Adjusted EBITDA
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          33,488
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          30,708
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          121,622
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          110,007
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; width: 100%; font-size: 8pt" cellspacing="0">
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="top" colspan="8">
          <b>Year Ended June 30,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>2018</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom" colspan="3">
          <b>2017</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top" colspan="8">
          (in thousands)
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Net cash provided by operating activities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          103,627
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          88,728
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Purchase of property and equipment
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (8,743
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (2,174
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Capitalized software development costs
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (24,533
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          (26,918
        </td>
        <td style="text-align: left; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 2.0px" valign="top">
          Capitalized curriculum development costs
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (9,927
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-color: black; border-bottom-width: 1.0pt; border-bottom-style: solid">
          &#160;
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          (19,132
        </td>
        <td style="text-align: left; border-bottom-color: black; white-space: nowrap; border-bottom-width: 1.0pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: solid" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px; padding-bottom: 4.0px" valign="top">
          Free cash flow
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          60,424
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom-color: black; white-space: nowrap; border-bottom-width: 2.25pt; padding-left: 0.0px; padding-right: 0.0px; border-bottom-style: double" valign="bottom">
          40,504
        </td>
        <td style="border-bottom-color: black; border-bottom-width: 2.25pt; border-bottom-style: double">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>About K12 Inc.</b>
    </p>
    <p>
      K12 Inc. (NYSE: LRN) is driving innovation and advancing the quality of
      education by delivering state-of-the-art, digital learning platforms and
      technology to students and school districts across the globe. K12&#8217;s
      curriculum serves over 2,000 schools and school districts and has
      delivered millions of courses over the past decade. K12 provides online
      and blended education solutions to charter schools, public school
      districts, private schools, and directly to families. The K12 program is
      offered through more than 70 partner public schools, and through school
      districts and public and private schools serving students in all 50
      states and more than 100 countries. More information can be found at
      K12.com. To download the enrollment app visit K12.com/app.
    </p>
    <p>

    </p>
    <p>
      CONTACT:<br><b>K12 Inc.</b><br><b>Investor and Press Contact:</b><br>Mike
      Kraft, 571-353-7778<br>VP Finance and Communications<br><u>mkraft@k12.com</u>
    </p>
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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
